In re Romano

(N.D. Ind. Sept. 14, 2016)

The district court affirms the bankruptcy court’s ruling that denied appellant’s (Jones) application for post facto appointment as special counsel to debtor and his administrative expense motion. Debtor filed a routine chapter 7 case and obtained a discharge; however, she failed to disclose an employment discrimination action she filed in federal district court prior to filing her bankruptcy case. She eventually reopened her case and disclosed the lawsuit. The chapter 7 trustee filed an application to employ his law firm, which was granted, and quickly settled the case. Jones sought compensation for representing debtor in her employment discrimination case. Since he did not pursue any argument pursuant to § 327(e), the district court focused solely on § 327(a) and found that Jones’s claim failed because the trustee did not request or consent to his employment. Likewise, Jones’s attempt to obtain an administrative expense priority failed because § 330(a)(1) does not authorize compensation to attorneys not employed under § 327(a).

Judge: Springmann

Attorney for Debtor: Richard Busse

Attorney for Trustee: Kenneth Manning

Attorney for Appellant: Stuart Jones

Author: Robert K. Imperial

2016-09-14-in-re-romano

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