Cases: Bankruptcy Efforts

Bankruptcy/Reasonableness Of Fees:  Ninth Circuit Affirms Arbitrator’s Award Of Fee Recovery To Chapter 11 Debtor’s Attorneys Under Reasonable Value Cap Of 11 U.S.C. § 502(b)(4)

Cases: Bankruptcy Efforts, Cases: Reasonableness of Fees

Appellate Court Also Reconciled Importance of Full Faith And Credit Act With Respect To Preclusive Effect Of Arbitrator’s Decision.             The Ninth Circuit in In re CWS Enterprises, Inc., No. 14-17045 (9th Cir. Sept. 14, 2017) (published) had to reconcile two provisions:  11 U.S.C. § 502(b)(4), a provision limiting pre-petition attorney’s fees provided to a […]

Bankruptcy Efforts, Pleading, Reasonableness Of Fees:  4/1 DCA Reverses Fee Award Based On Failure To Consider Previously Filed Papers On Prior Motion

Cases: Bankruptcy Efforts, Cases: Pleading, Cases: Reasonableness of Fees

Additionally, Remand Made To Include Bankruptcy Efforts And Provide A Better Explanation Of 50% Fee "Haircut".             Roth v. Plikaytis, Case No. D070484 (4th Dist., Div. 1 Sept. 13, 2017) (partially published) is a situation where defendant prevailed on a breach of contract action allowing fee entitlement (after a jury trial), but where the trial

Bankruptcy/Special Fee Shifting Statute: Fifth Circuit Court Of Appeals Affirms Almost $16 Million Criminal Restitution Order To GECC For Legal, Expert, And Consulting Fees In Bankruptcy Fraud Proceedings

Cases: Bankruptcy Efforts, Cases: Special Fee Shifting Statutes

  Basis For Order Was The Mandatory Victims Restitution Act.       Although not a California case, USA v. Lagos, No. 16-20146 (5th Cir. Mar. 23, 2017 revised) (published) was interesting for purposes of illustrating that significant attorney’s fees and related costs can be awarded as part of restitution entered in criminal cases. Lagos involved a

Bankruptcy: Statutory Prospective Rent Damages Cap Applies To Creditor Work In Litigating Future Rent Issues, But Does Not Apply To Work On Past Rent Or Debtor Counterclaim Ordinary Breach Of Lease Issues

Cases: Bankruptcy Efforts

    Cap Only Applies To Claims Directly Resulting From Lease Termination, Not Collateral Issues.       The Ninth Circuit in In re Kupfer, No. 14-16697 (9th Cir. Dec. 29, 2016) (published) considered the extent to which attorney’s fees for certain work were or were not subject to the statutory cap for prospective rent aiding a

Bankruptcy/Indemnity: City Of Vallejo’s Chapter 9 Bankruptcy Plan Did Not Discharge Compensatory Or Attorney’s Fees Awards Against Individual Police Officers In Excessive Force Case

Cases: Bankruptcy Efforts, Cases: Indemnity

  However, Vallejo Likely Owes Statutory Indemnification Duties To Officers For Both Awards.      The Ninth Circuit in Deocampo v. Potts, No. 14-16192 (9th Cir. Sept. 8, 2016) (published) confronted an issue under a Chapter 9 municipality bankruptcy plan, harkening to say that more of these issues may be confronted as local governments face economic

Bankruptcy: Attorney’s Fees Incurred By Plaintiff During Litigation After Confirmation Of Debtor’s Chapter 11 Bankruptcy Plan Were Discharged

Cases: Bankruptcy Efforts

  Although Plaintiff’s Claim Arose Pre-Petition, Plaintiff’s Post-Discharge Litigation Conduct Was Within The Discharge “Fair Contemplation” Of The Parties.      In Picerne Construction Corp. v. Castellino Villas, A.K.F., LLC, Case No. 12-57186 (9th Cir. Sept. 6, 2016) (published), the Ninth Circuit confronted whether the bankruptcy court properly concluded that attorney’s fees incurred by plaintiff incurred

Bankruptcy/Requests For Admission: Auto Accident Defendant/Chapter 7 Debtor Properly Discharged From Liability For Costs-Of-Proof Sanctions Based On Post-Petition Conduct Or Post-Discharge Conduct

Cases: Bankruptcy Efforts, Cases: Requests for Admission

  Post-Petition Was Passive, Not Active, So Discharge Principles Applied.     In Reese v. Mingramm, Case No. B262021 (2d Dist., Div. 6 May 18, 2016) (unpublished), a defendant in a later personal injury action filed a Chapter no-asset bankruptcy but failed to list the personal injury plaintiff as a creditor given that the matter was

Bankruptcy/Section 1717/Special Fee Shifting Statute: Debtor’s Fees In Nondischargeability Bankruptcy Action Were Not Recoverable Under California Civil Code Section 1717 Or ERISA Discretionary Fee-Shifting Statute

Cases: Bankruptcy Efforts, Cases: Section 1717, Cases: Special Fee Shifting Statutes

  Fee Activities Were Not Within the Purview Of Either Statute.     Debtor/employer eventually “defensed” a bankruptcy nondischargeability action brought by certain employees arguing employer was an ERISA fiduciary for purposes of the “fiduciary” exception to bankruptcy discharge, a determination found to not legally be sustainable under a prior Ninth Circuit opinion (meaning employer was

Bankruptcy: U.S. Supreme Court Denies Certiorari In Case Where Petitioning Creditors In Involuntary Bankruptcy Hit With Fees, Including Appellate Fees, For Prosecuting Case In Bad Faith

Cases: Bankruptcy Efforts

  Certiorari Denied on January 8, 2016.     On March 9, 2015, we posted on the Eleventh Circuit’s decision in DVI Receivables XIV, LLC v. Rosenberg, where petitioning creditors in an involuntary bankruptcy were assessed with fees, including appellate fees, for prosecuting the involuntary petition in bad faith.   U.S Bank had sought certiorari from the

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