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2006 NORTON BANKRUPTCY LAW SEMINAR MATERIALS

THE ETHICS OF REPRESENTING DEBTORS AND CREDITORS IN BANKRUPTCY

By Susan M. Freeman

*This outline is adapted from Chapter 27, Ethical Responsibilities,
Norton Bankruptcy Law & Practice 2d (Thomson-West 2005)

 

C.D. Cal. 1990); In re Crimson Investments N.V., 109 B.R. 397 (Bankr. D. Ariz. 1989)(retainer from insider/creditor); In re Senior G&A Operating Company, Inc., 97 B.R. 307 (Bankr. W.D. La. 1989); In re Bergdog Productions of Hawaii, Inc., 7 B.R. 890 (Bankr. D. Haw. 1980); In re WPMK, Inc., 42 B.R. 157 (Bankr. D. Haw. 1984); In re Glenn Electric Sales Corp., 89 B.R. 410 (Bankr. N.J. 1988), aff'd. 99 B.R. 596 (D. N.J. 1988).

166 In re EZ Links Golf, LLC, 317 B.R. 858 (Bankr. D. Colo. 2004) (applying Kelton Motors test); In re Forbes Property Management, L.L.C., 252 B.R. 171 (Bankr. D. Colo. 2000)(special counsel ­ applying Kelton Motors test); In re Lan Dan Enterprises, Inc., 221 B.R. 93 (Bankr. S.D.N.Y. 1998); In re Lotus Properties LP, 200 B.R. 388 (Bankr. C.D. Cal. 1996); In re Kelton Motors, Inc., 109 B.R. 641 (Bankr. D. Vt. 1989)(good discussion of factors to be weighed); In re City Matters, Inc., 163 B.R. 687 (Bankr.

W.D.N.Y. 1994) (meeting on property owned by debtor's principals and leased to debtor); In re Waterfall Village of Atlanta, Inc., 103 B.R. 340 (Bankr. N.D. Ga. 1989)(fees paid by entity that owned and controlled debtor in single asset case); In re Michigan Beach Apartments, 61 B.R. 446 (Bankr. N.D. Ill. 1986); In re EES Lambert Associates, 62 B.R. 328 (Bankr. N.D. Ill. 1986).

167In re Missouri Mining, Inc., 186 B.R. 946 (Bankr. W.D. Mo. 1995); In re Palumbo Family Ltd. Partnership, 182 B.R. 447 (Bankr. E.D. Va. 1995); In re Olson, 36 B.R. 74 (D. Neb. 1983).

168Senior G&A Operating Company, Inc., 97 B.R. 307 (Bankr. W.D. La. 1989).

169In re Rabex Amaru of North Carolina, Inc., 198 B.R. 892 (Bankr. M.D.N.C. 1996); In re Crivello, 194 B.R. 463 (Bankr. E.D. Wis. 1996); In re Adam Furniture Industries, Inc., 158 B.R. 291 (Bankr. S.D. Ga. 1993)(fees received from entities subject to avoidance and recovery actions by the estate); In re Black Hills Greyhound Racing Ass'n., 154 B.R. 285 (Bankr. D. S.D. 1993); In re Prudent Holding Corp., 153

B.R. 629 (Bankr. E.D.N.Y. 1993); Glenn Electric, 89 B.R. at 418, 99 B.R. at 601602 (retainer paid by DIP's shareholder, which it borrowed from an affiliate of one of the DIP's creditors, an expected plan proponent);In re TMA Assoc., Ltd., 129

B.R. 643 (Bankr. D. Colo. 1991)(fees paid by creditor and entity which was controlled by debtor's general partner rendered attorney not disinterested); In re Hunt-mar Beaumeade I Limited Partnership, 127
B.R. 363 (Bankr. E.D. Va. 1991)(fee payment by creditor disqualified attorney); In re Neidig Corp., 113 B.R. 696 (D. Colo. 1990); In re Crimson Investments N.V., 109 B.R. at 400-401 (retainer paid by insider/principal creditor ordered turned over to

 

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