Bankr. No.:
91-50224
Chapter:
7
Date of Decision:
March 25, 1993
Issue:
Whether a corporate debtor's counsel may obtain compensation under § 330(a) where the counsel failed to disclose that he had previously represented the debtor's parent company on financial matters involving the debtor, where the parent company owed the debtor a large debt, and where the parent paid the counsel's bankruptcy retainer?
Ruling:
Compensation was denied because the debtor's counsel was never eligible under § 327(2) to represent the debtor. The counsel was not disinterested, he represented an entity who held an adverse interest, and he personally held an adverse interest. Further, the facts did not support an award of any fees on a quantum meruit theory.
Full Bankruptcy Court Decision:
