In Travelers Cas. & Sur. Co. of Am. v. PG&E, 549 U.S. 443 (2007), the Supreme Court held that bankruptcy law does not disallow a post-petition unsecured claim for attorney’s fees to the extent such claim is authorized by a pre-petition contract and not otherwise expressly disallowed. That pronouncement should have stopped all future litigation over … Continue Reading
In February, we told you about Judge Walrath’s recent opinion in In re Boomerang Tube, Inc., which rejected a variety of different arguments, including a contractual work-around, that sought to circumvent the Supreme Court’s decision in Baker Botts LLP v. ASARCO, LLC. In ASARCO, the Supreme Court held that professionals representing debtors and creditors’ committees … Continue Reading
Most loan contracts include provisions allowing the collection of attorneys’ fees in the event the borrower defaults. These attorney fee provisions are routinely enforced in collection suits brought in state courts. However the federal bankruptcy courts operate independent of the state court debt collection system. Bankruptcy cases often generate a variety of controversies that will … Continue Reading
