In Re J. David Dominelli, Debtors. Official Creditors' Committee v. Louis Metzger, Trustee

HUG, Circuit Judge:

The primary issue presented on appeal is a narrow one. We are called upon to decide whether a bankruptcy court is authorized, in a Chapter 7 proceeding, to obligate debtor estates for the legal expenses incurred by a creditors’ committee. We affirm the district court’s order holding that such expenses are not authorized.

I

Involuntary petitions were filed on February 13, 1984 against the above-captioned debtors. On May 8,1984, a creditors’ committee, generally known as the J. David Creditors’ Committee (“Creditors’ Commit tee”), was formed. On October 18, 1984, the Creditors’…