Southland Corp. v. Kilgore & Kilgore

EDITH H. JONES, Circuit Judge:

Kilgore & Kilgore represented some of Southland’s bondholders in a Texas state court action for breach of contract. South-land subsequently filed a voluntary Chapter 11 petition and removed the state court action to the bankruptcy court. The plaintiffs in the state court action thereafter assigned their right to recover attorneys’ fees under Texas law to Kilgore & Kilgore, and the firm filed a claim for $28,369.00 in pre-petition legal fees in the Southland bankruptcy.

After confirmation of the Chapter 11 plan, Southland objected to the claim in its Amended…