California

Section 328(c) and Rule 2014(a) Both Permit Denial of All Compensation

Undisclosed representation of the debtor’s principal resulted in denial of all compensation sought by counsel for the corporate debtor.

A Client Can Be Liable for Sanctions from the Lawyer’s Violation of Rule 9011

Judge Klein let a lawyer off the hook for violating Rule 9011 because the lawyer had already been punished enough.

California Judge Splits with his BAP; Subpoenas Require Court Approval Under Barton

Someone seeking to issue a subpoena to a trustee is the proper party to seek leave under the Barton doctrine, Judge Clarkson says.

The Two-Year Complaint Deadline Can’t Be Extended Without Notice to Defendants

Equitable tolling can extend the two-year deadline for filing complaints, but the deadline can’t be extended without notice to the defendants, even if they are unknown or unknowable.

Counsel Can’t Disclaim Responsibilities Imposed by the Code and Rules, Judge Says

Judge Clarkson laid down guidelines for a lawyer who copies pleadings written by another lawyer in a different case.

Denial of a Motion to Convert from ‘11’ to ‘7’ Is Not Final and Thus Not Appealable

Until now, there has been surprisingly little precedent directly on point to say that denial of a motion for conversion from chapter 11 to chapter 7 is not a final order subject to appeal

Debtors Can’t Easily Glom Uncashed Distribution Checks

Just because a creditor doesn’t cash a distribution check doesn’t mean it’s abandoned and reverts to the debtor.

Acevedo Doesn’t Bar Compensation for Services Before Entry of a Retention Order

So long as there was no delay in filing the retention application, Judge Tighe identified statutory and practical reasons for allowing compensation for services rendered before entry of a retention order.

A District Court Rules that the U.S. Trustee Fee Increase Isn’t Retroactive

California district judge sides with the dissenter in the Fifth Circuit in saying that the parallel systems of U.S. Trustees and Bankruptcy Administrators violates the Bankruptcy Clause of the Constitution.

Landlord Socked $606,000 for Opposing Lease Assumption

Fee-shifting clause in the lease entitled the debtor to recover $606,000 in attorneys’ fees from the landlord for opposing lease assumption.

Pages