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*This outline is adapted from Chapter 27, Ethical Responsibilities,
Norton Bankruptcy Law & Practice 2d (Thomson-West 2005)
estate); In re National Distributors Warehouse Co., Inc., 148 B.R. 558 (Bankr. E.D. Ark. 1992); contra, In re Waterfall Village of Atlanta, Ltd., 103 B.R. 340, 345 (Bankr. N.D. Ga. 1989); see In re Revels, 147 B.R. 128 (Bankr. E.D. Va. 1992)(attorney disqualified for failure to disclose third party retainer).
170In re Hathaway Ranch Partnership, 116 B.R. 208 (Bankr. C.D. Cal. 1990); In re National Distributors Warehouse Co., Inc., 148 B.R. 558 (Bankr. E.D. Ark. 1992). 171In re Flagstaff Food Service Corp., 739 F.2d 73 (2d Cir. 1984); In re Grant Associates, 154 B.R. 836
(S.D.N.Y. 1993)(DIP counsel entitled to surcharge rental income cash collateral only to extent creditor benefitted); see extensive citations in In re CD Electric Co., 146 B.R. 786 (Bankr. N.D. Ind. 1992). 172In re Davis, 258 B.R. 510 (Bankr. M.D. Fla. 2001); In re Meyers, 120 B.R. 751 (Bankr. S.D.N.Y. 1990) and cases cited therein; In re Woodcock, 100 B.R. 520 (Bankr. E.D. Cal. 1989).
173 In re Martin, 817 F.2d 175 (1st Cir. 1987)(not per se invalid; numerous factors listed for court review); In re Lackawana Medical Group, P.C., 323 B.R. 626 (Bankr. M.D. Pa. 2005) (attorney with unpaid prepetition bill secured by cash retainer not disinterested, and not entitled to fee payment even for work performed in contemplation of bankruptcy; declining to follow Martin); In re Advanced Imaging Technologies, Inc., 306 B.R. 677 (Bankr. D. Wash. 2003); In re Printcrafters, Inc., 208 B.R. 968 (Bankr.
D. Colo. 1997)(security interest in retainer precludes disinterestedness); In re City Mattress, Inc., 163 B.R. 687 (Bankr. W.D.N.Y. 1994); In re Quincy Air Cargo, Inc., 155 B.R. 193 (C.D. Ill. 1993)(security interest in vehicles permissible); In re Gilmore, 127 B.R. 406 (Bankr. M.D. Tenn. 1991)(bond in lieu of retainer given without creditor objection and with attorney agreement not to invade bond absent court permission); In re Carter, 116 B.R. 123 (E.D. Wisc. 1990)(attorney could secure bankruptcyrelated fees with assign
ment of land contract vendor's interest in debtor's real estate, although he became a creditor upon perfection of the security interest); but see In re Pierce, 809 F.2d 1356 (8th Cir. 1987) (attorneys' prepetition mortgage on estate assets disqualifying); In re Escalera, 171 B.R. 107 (Bankr. E.D. Wa. 1994)(same, refusing to follow Martin); In re Automend, Inc., 85 B.R. 173 (Bankr. N.D. Ga. 1988)(security interest in
