After the U.S. Supreme Court decided in June that bankruptcy lawyers can’t be paid for successfully defending their fee requests, the open question was whether there was any work-around to the new rule.
At issue are contractual provisions adopted at the outset of a bankruptcy that permit professionals to receive compensation for defending fee requests. The majority opinion written by Justice Clarence Thomas seemed to indicate that a contractual provision, in addition to legislation, could override the traditional American Rule, under which each side pays for counsel.
At a hearing on Aug. 11, U.S. Bankruptcy Judge Mary F. Walrath is slated ...
Learn more about Bloomberg Law or Log In to keep reading:
Learn About Bloomberg Law
AI-powered legal analytics, workflow tools and premium legal & business news.
Already a subscriber?
Log in to keep reading or access research tools.