June 15, 2015
In the Law360
article, “Lawyers React To Justices' Ruling In Baker Botts Fees Case,” special counsel Benjamin D. Feder
commented on the U.S. Supreme Court’s ruling that bankruptcy attorneys cannot recover money spent on defending their fee requests from challenges in Baker Botts LLP et al. v. Asarco LLC
. Mr. Feder said:
“This is not a good decision. The statutory language of Section 330(a) of the Bankruptcy Code is nowhere near as clear and unambiguous as the majority claims; the alternative reading offered by the dissent is both equally plausible and more consistent with the understanding of most bankruptcy lawyers. The requirement that fees only be allowed after a 'hearing' necessarily implicates a contested process, for which 'reasonable compensation' should be provided. Baker Botts v. Asarco will needlessly encourage more litigation challenges to the allowance of professional fees and substantially increase overall Chapter 11 costs. This case blithely ignores the realities of large corporate bankruptcy cases and long-standing commercial practice.”
To read the full article, please click here
. Access may require subscription.