In Re Kelton Motors, Inc.
United States Bankruptcy Court, D. Vermont
1Opinion of the Court
MEMORANDUM OF DECISION ON MOTION TO DISQUALIFY ATTORNEY FOR DEBTOR-IN-POSSESSION
FRANCIS G. CONRAD, Bankruptcy Judge.
Creditors move 1 to disqualify DIP’s counsel because his “Rule 2016(b)” statement disclosed he had received attorney fees for services rendered prior to DIP’s subsequent conversion to a debtor under Chapter 7, 11 U.S.C. §§ 101, et seq., from the DIP’s sole shareholder, officer, and spouse. Creditors urge us to adopt a per se rule to forbid this type of arrangement because it creates a presumption of a conflict of interest between DIP, DIP’s counsel, and DIP’s principals. In an…
2Cases cited59 opinions
- Bank of Marin v. EnglandSupreme Court of the United States · 1966
- Woods v. City Nat. Bank & Trust Co. of ChicagoSupreme Court of the United States · 1941
- Randall v. BrighamSupreme Court of the United States · 1869
- The Government of India and the Food Corporation of India v. Cook Industries, Inc. And Cook and CompanyCourt of Appeals for the Second Circuit · 1978
- In the Matter of Consolidated Bancshares, Inc., D/B/A Consolidated Investors, Inc., Debtor. Pierson & Gaylen, Ray & Terrell & Grubbs, Cross- v Creel & Atwood and Jack Bryant, Cross-AppellantsCourt of Appeals for the Fifth Circuit · 1986
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3Cited by24 opinions
- In Re Leslie Fay Companies, Inc.United States Bankruptcy Court, S.D. New York · 1994
- Peugeot v. United States Trustee (In Re Crayton)United States Bankruptcy Appellate Panel for the Ninth Circuit · 1996
- Waldron v. Adams & Reese, L.L.P. (In Re American International Refinery, Inc.)Court of Appeals for the Fifth Circuit · 2012
- In Re Caldor, Inc.-NYUnited States Bankruptcy Court, S.D. New York · 1996
- In Re Diamond Mortg. Corp. of IllinoisUnited States Bankruptcy Court, N.D. Illinois · 1990
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