THE ETHICS OF REPRESENTING DEBTORS AND CREDITORS IN BANKRUPTCY

1990)(continued representation of DIP's principal shareholder disqualified attorney from representing DIP); In re Ginco, Inc., 105 B.R. 620 (D. Colo. 1983)(denied request to serve as special counsel to prosecute lender liability claims for both debtor and insider/creditor); In re Granite Sheet Metal Works, Inc., 159 B.R. 840 (Bankr. S.D. Ill. 1993); In re Black Hills Greyhound Racing Ass'n., 154 B.R. 285 (Bankr. D.

S.D. 1993); In re Prudent Holding Co., 153 B.R. 629 (Bankr. E.D.N.Y. 1993); In re Rusty Jones, Inc., 134 B.R. 321 (Bankr. N.D. Ill. 1991); In re Chou-Chen Chemicals, Inc., 31 B.R. 842 (Bankr. W.D. Ky. 1983); In re Nu-South Industries, Inc., 115 B.R. 90 (Bankr. S.D. Miss. 1990)(disqualified from representing debtor in Chapter 7 case); In re McNar, Inc., 116 B.R. 746 (Bankr. S.D. Cal. 1990); In re Kuykendahl Assoc., Ltd., 112 B.R. 847 (Bankr. S.D. Tex. 1989)(former representation of partner mandates disqualification to represent partnership); In re TempWay Corp., 95 B.R. 343 (N.D. Pa. 1989); In re Siesta Sands Development Corp., 95 B.R. 812 (Bankr. N.D. Fla. 1989); In re BES Concrete Products, Inc., 93 B.R. 228 (Bankr. E.D. Cal. 1988); In re Kendavis Industries International, Inc., 91 B.R. 742 (Bankr. N.D. Tex. 1988); In re Philadelphia Athletic Club, Inc., 20 B.R. 328 (Bankr. E.D. Pa. 1982); In re Barton & Ludwig, 9 B.R. 222 (Bankr. N.D. Ga. 1981); In re Coastal Equities, Inc., 39 B.R. 304 (Bankr. S.D. Cal. 1984); In re Roger J. Au & Son, Inc., 64 B.R. 600 (N.D. Ohio 1986); In re Temp-Way Corp., 95 B.R. 343 (E.D. Pa. 1989); In re Butterfield Ltd. Partnership, 131 B.R. 67 (Bankr. E.D. Mich. 1990); contra, In re Sidco, Inc., 173 B.R. 194 (E.D. Cal. 1994); In re Stamford Color Photo, Inc., 98 B.R. 135 (Bankr. D. Conn. 1989); In re Quakertown Glass Co., Inc., 73 B.R. 468 (Bankr. E.D. Pa. 1987).

¹⁵⁹In re Huntco, Inc., 288 B.R. 229 (Bankr. E.D. Mo. 2002); In re Argus Group 1700, Inc., 199 B.R. 525 (Bankr. E.D. Pa. 1996); TWI International, Inc. v. Vanguard Oil and Service Co., 162 B.R. 672

(S.D.N.Y. 1994); In re Francis, 165 B.R. 929 (Bankr. E.D. Cal. 1994); In re Westwood Homes, Inc., 157

B.R. 182 (Bankr. D. Me. 1993); In re Plaza Hotel Corp., 111 B.R. 882 (Bankr. E.D. Cal. 1990), aff'd, 123

B.R. 466 (E.D. Cal. 1991)(court refused to adopt per se rule against attorney representing debtor and its controlling shareholders, but held firm disqualified because shareholders being sued on guarantees); In re Consolidated Bancshares, Inc., 785 F.2d 1249 (5th Cir. 1986); In re Freedom Solar Center, Inc., 776 F.2d 14 (1st Cir. 1985)(resolve doubts in favor of disqualification); In re TMA Associates, ltd., 129 B.R. 643 (Bankr. D. Colo. 1991); In re Star Broadcasting, Inc., 81 B.R. 835 (Bankr. D. N.J.; In re Hurst Lincoln Mercury, Inc., 80 B.R. 894 (Bankr. S.D. Ohio 1987); In re Downtown Investment Club III, 89 B.R. 59 (9th Cir. BAP 1988).

¹⁶⁰See discussion and cases cited in section II E. ¹⁶¹E.g. In re Condor Systems, Inc. 302 B.R. 35 (Bankr. N.D. Cal. 2003); In re Angelika Films 57^th Inc., 227 B.R. 29 (S.D.N.Y. 1998); In re Kendavis Industries International, Inc., 91 B.R. 742 (Bankr. N.D. Tex. 1988). ¹⁶² In re Condor Systems, Inc. 302 B.R. 35 (Bankr. N.D. Cal. 2003); In re Coram Healthcare Corp., 271 B.R. 228 (Bankr. D. Del. 2001) (DEP's CEO connections to largest creditors board member and served its interest). ¹⁶³Model Rule of Professional Conduct 1.8(f); comment to Model Rule 1.7. ¹⁶⁴See In re Boh! Risdorante, Inc., 99 B.R. 971 (9th Cir. BAP 1989)(gift from ex-wife). ¹⁶⁵In re Crivello, 205 B.R. 399 (E.D. Wis. 1977), rev'd. on other grounds, 134 F.3d 831 (7^th Cir. 1998); In re Metropolitan Environmental, Inc., 293 B.R. 871 (Bankr. N.D. Ohio 2003) (evidence of serving guarantors' interests ahead of DIP); In re Hathaway Ranch Partnership, 116 B.R. 208, 219 (Bankr.