In re Licking River Mining, LLC

(Bankr. E.D. Ky. Dec. 14, 2016)

The bankruptcy court grants the U.S. Trustee’s motion to disqualify the law firm from representing the trustee in certain adversary proceedings. The firm was retained pursuant to 11 U.S.C. § 327(e). However, after the court approved the firm’s employment, the firm supplemented its initial disclosures, stating it had previously represented certain parties adverse to the trustee in the adversary proceedings. The court finds that the prior representation created a conflict of interest and thus the firm must be disqualified in those actions. Opinion below.

Judge: Wise


Author: Matt Lindblom

In re Bullitt Utilities, Inc.

(Bankr. W.D. Ky. Sep. 16, 2016)

The court grants the trustee’s motion to employ the law firm as special counsel to pursue claims against certain third parties on behalf of the estate. The law firm had represented two of the largest creditors of the estate in connection with commencing the involuntary chapter 7 against the debtor. The court finds that there is no conflict in the representation, in part because the scope of the proposed engagement—seeking recovery of amounts owed to the estate—was aligned with the interests of the creditors, and in part because the creditors confirmed that the law firm no longer represented them. Opinion below.

Judge: Lloyd

Trustee: Robert W. Keats

Special Counsel: Bingham, Greenbaum, Doll, LLP

Author: Matt Lindblom



In re Licking River Mining, LLC

(Bankr. E.D. Ky. Sep. 22, 2015)

The bankruptcy court approves the trustee’s employment applications over the lender’s objections. The lender argued that the professionals sought to be employed were not disinterested for reasons including that they were involved with the case before conversion to chapter 7 and potentially had a conflict with accepting payment from a collateral carve-out. The court approves the applications, except for the provision of a retainer to one of the professionals. Opinion below.

2015-09-22 – in re licking river mining

Author: Matt Lindblom