Bankr. No.:
91-50133
Adv. No.:
94-5016
Chapter:
7
Date of Decision:
June 3, 1996
Issue:
Whether co-plaintiff-debtor was bound by employment terms agreed to by plaintiff-trustee and the plaintiffs' attorney and approved by court?
Ruling:
Employment order bound only co-plaintiff-trustee. Co-plaintiff-debtor was not a part of the employment agreement between the trustee and plaintiffs' attorney and had been given no opportunity to object to it. Co-plaintiff-debtor would be obligated to pay attorney pursuant to the terms of their separate agreement. Court could scrutinize that agreement only for reasonableness under ยง 329(b).
Full Bankruptcy Court Decision: