Legal Opinion

In Re Kelton Motors, Inc.

United States Bankruptcy Court, D. Vermont

Decided December 8, 1989No. 15-11045PublishedCited by 24 opinions

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

  1. Bank of Marin v. EnglandSupreme Court of the United States · 1966
  2. Woods v. City Nat. Bank & Trust Co. of ChicagoSupreme Court of the United States · 1941
  3. Randall v. BrighamSupreme Court of the United States · 1869
  4. 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
  5. 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

  1. In Re Leslie Fay Companies, Inc.United States Bankruptcy Court, S.D. New York · 1994
  2. Peugeot v. United States Trustee (In Re Crayton)United States Bankruptcy Appellate Panel for the Ninth Circuit · 1996
  3. Waldron v. Adams & Reese, L.L.P. (In Re American International Refinery, Inc.)Court of Appeals for the Fifth Circuit · 2012
  4. In Re Caldor, Inc.-NYUnited States Bankruptcy Court, S.D. New York · 1996
  5. In Re Diamond Mortg. Corp. of IllinoisUnited States Bankruptcy Court, N.D. Illinois · 1990

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