vol 18, num 4 | November 2020
 
 
committeeslogo
 
Ethics & Professional
Compensation
 
AN ABI COMMITTEE NEWSLETTER
 
Visit the Ethics & Professional Compensation Committee page
 
 
► IN this issue:
 
 
 
Bankruptcy Court Has Jurisdiction to Award Attorneys’ Fees for Work Performed by Creditor’s Counsel Protecting Civil Rights Judgment in Bankruptcy Case
Nicole A. Leonard
 
Nicole A. Leonard
McElroy, Deutsch, Mulvaney & Carpenter LLP
New York
 
Jeffrey Bernstein
 
Jeffrey Bernstein
McElroy, Deutsch, Mulvaney & Carpenter LLP
Newark, N.J.
 
 
A California bankruptcy court has held that the right to seek attorneys’ fees for violations of the Civil Rights Act applies to fees incurred protecting a civil rights judgment in a bankruptcy proceeding. In the case of In re Harris, the bankruptcy court granted the creditor’s request for attorneys’ fees and costs incurred in the bankruptcy case because such fees and costs were for work performed while protecting and enforcing the creditor’s pre-petition civil rights judgment.

Rosalina Harris, a detective with the Los Angeles Sheriff’s Department, filed a voluntary chapter 11 petition. Prior to the bankruptcy filing, the creditor, Crystal Holmes, who had lived next door to Harris, filed a complaint in the U.S. District Court for the Central District of California against Harris and others, alleging malicious prosecution and deprivation of civil rights under 42 U.S.C. § 1983. On July 11, 2019, a judgment was entered against Harris in the amount of $2,265,952. Harris appealed the judgment, and the appeal is pending before the U.S. Court of Appeals for the Ninth Circuit.

After the judgment was entered (and prior to any ruling on the appeal), in March 2020 Harris filed a chapter 11 bankruptcy petition. The court entered an order dismissing the case a few months later in May 2020 as a bad-faith filing. The court found that the basis for the filing was to avoid the requirement of posting a supersedeas bond in the pending appeal of the civil rights judgment.

 
READ MORE
 
 
 
The Fifth Circuit’s In re Galloway Decision and the Local Practice of Attorneys “Covering” at § 341 Meetings
Prof. Abigail B. Willie
Lecturer in Commercial Law, Saint Louis University School of Law
St. Louis, Mo.
 
Joseph Martin
LL.M. Candidate, St. John’s University School of Law
Jamaica, N.Y.
 
 
Recently, in Rivers v. Aufrecht (In re Galloway), the U.S. Court of Appeals for the Fifth Circuit spared an attorney from sanctions and disgorgement directives, reversing the bankruptcy court after consideration of the totality of the facts in the case. While the opinion does not cut particularly new ground on the law of sanctions and disgorgement, it deserves attention for the skepticism expressed regarding the fairly common “local practice” of unaffiliated consumer bankruptcy attorneys “covering” for one another in the representation of clients at meetings of creditors.
 
READ MORE
 
 
 
WLC Session: Money Talks: Getting Retained and Paid (Ethically) by the Bankruptcy Estate

2020 virtual WLC

This panel sponsored by ABI's Ethics and Professional Compensation and Young and New Member Committees will discuss ethical considerations governing that all-important process: getting retained and paid by the bankruptcy estate. Aside from covering the basics of retention for young and new professionals, the panelists will address some of the myriad ethical issues governing retention and compensation that can arise, including connection disclosures, concurrent representations of insiders, and expense reimbursement. The session will also discuss recent decisions that could fundamentally affect how professionals are retained — including the use of the so-called “Jay Alix Protocol” and whether nunc pro tunc is still viable.

Speakers for this session include:

  • John Duck Adams and Reese | New Orleans
  • Hon. Meredith Grabill U.S. Bankruptcy Court (E.D. La.) | New Orleans
  • Ariane Holtschlag Law Offices of William J. Factor, Ltd. | Chicago
  • Evan T. Miller Bayard, P.A. | Wilmington, Del.
 
REGISTER NOW
 
 
 
 
ABI's Virtual Happy Hours
 
 
 
INTERNATIONAL INSOLVENCY FORUM - Nov. 18-20, 2020
 
 
 
logo-footer
 
icon_circle-facebook icon_circle-twitter icon_circle-linkedin icon_circle-instagram
 
©2020 American Bankruptcy Institute
All Rights Reserved.
66 Canal Center Plaza, Suite 600
Alexandria, VA 22314
 
View Online  |  Manage Your Preferences