Quote:
Originally Posted by greywar
Title is misleading. basically click bait.
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" ASARCO LLC hired petitioner law firms pursuant to
§327(a) of the Bankruptcy Code to assist it in carrying out its duties
as a Chapter 11 debtor in possession. See 11 U. S. C. §327(a). When
ASARCO emerged from bankruptcy, the law firms filed fee applications
requesting fees under §330(a)(1), which permits bankruptcy
courts to “award . . . reasonable compensation for actual, necessary
services rendered by” §327(a) professionals. ASARCO challenged the
applications, but the Bankruptcy Court rejected ASARCO’s objections
and awarded the law firms fees for time spent defending the applications.
ASARCO appealed to the District Court, which held that the
law firms could be awarded fees for defending their fee applications.
The Fifth Circuit reversed, holding that §330(a)(1) did not authorize
fee awards for defending fee applications. "
Held: Section §330(a)(1) does not permit bankruptcy courts to award
fees to §327(a) professionals for defending fee applications. Pp. 3–13.
(a) The American Rule provides the “ ‘basic point of reference’ ” for
awards of attorney’s fees: “ ‘Each litigant pays his own attorney’s fees,
win or lose, unless a statute or contract provides otherwise.’ ” Hardt
v. Reliance Standard Life Ins. Co., 560 U. S. 242, 252–253. Because
the rule is deeply rooted in the common law, see, e.g., Arcambel v.
Wiseman, 3 Dall. 306, this Court will not deviate from it “ ‘absent explicit
statutory authority,’ ”
http://www.supremecourt.gov/opinions...4-103_bpdg.pdf
Wednesday’s oral argument caps several years of legal wrangling between Baker Botts and its one-time client, Asarco, that involves obscure laws governing whether bankruptcy attorneys should be paid in the event that their client disputes their legal bills and the firm must spend time and resources defending itself as a result. The amount they’re fighting over — $5.2 million — is far eclipsed by the $117 million Baker earned while representing Asarco during the course of the bankruptcy.
http://www.washingtonpost.com/busine...ca6_story.html