Bloomberg Law
Aug. 5, 2015, 11:37 AM UTC

Delaware Judge to Rule on Evading High Court Legal Fees Decision

Ellen Rosen

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 ...

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