Should an Estate Professional Be Paid for Defending Fees?
Partner Seth H. Lieberman and Associate Patrick Sibley authored the article, "Should An Estate Professional Be Paid For Defending Fees?" which was the lead story in the New York Law Journal's Corporate Restructuring and Bankruptcy Special Report.
Baker Botts LLP recently served as debtors' counsel in the Asarco bankruptcy case, in which they were awarded more than $113 million for its work as debtors' counsel, and were recognized for their professionalism and commitment by the bankruptcy court.
During the case, Baker Botts incurred millions in fees in defending its fee applications before the bankruptcy court. No court questioned the reasonableness of the fees that Baker Botts incurred in defending its fee requests, and its underlying fees were largely approved. Yet, the U.S. Court of Appeals for the Fifth Circuit reversed the lower courts' determinations that a bankruptcy estate professional's fees incurred in connection with defending its fee applications are compensable under the Bankruptcy Code.
The article focuses on §330 of the Bankruptcy Code, the section under which Baker Botts sought compensation as a bankruptcy estate professional, and the methods courts employ when evaluating §330 fee applications. It also examines the circuit split that gave rise to this appeal before the Supreme Court, and will focus on the practical effects the case will have on bankruptcy practitioners and their roles as estate professionals in future bankruptcy cases.
To read the article in its entirety, click here.
