Source: http://dianedrain.com/bankruptcy-law/bankruptcy-case-law/case-law-attorney-fees/
Timestamp: 2017-06-29 14:11:10
Document Index: 619960722

Matched Legal Cases: ['§ 362', '§362', '§ 523', '§ 727', '§ 523', '§ 727', '§ 1021', '§ 105']

Attorney Fees | Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney
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Attorney FeesQuick Page Index1 Attorney Fees1.0.0.1 RECOVERING ATTORNEY FEES AFTER STAY VIOLATION:1.0.0.2 RECOVERING ATTORNEY FEES AFTER NON-DISCHARGEABILITY ACTION1.0.0.3 ATTORNEY ENTITLED TO COLLECT BALANCE OF FEES FOLLOWING DISCHARGE OF CHAPTER 13 CASE 1.0.0.4 APPEALS & ATTORNEY FEES:
RECOVERING ATTORNEY FEES AFTER STAY VIOLATION:
In re SCHWARTZ-TALLARD, 9th Cir. 10/14/15 BAP No. 11-1429 When a debtor files for bankruptcy, the Bankruptcy Code imposes an automatic stay on actions against the debtor to collect pre-petition debts. Sternberg v. Johnston, 595 F. 3d 937 (9th Cir. 2010), held that § 362(k) allowed a debt or to recover only those fees incurred to end the stay violation itself, not the fees incurred to prosecute a damages action. Agreeing with other circuits, the en banc court held that §362(k) authorizes recovery of the fees incurred to prosecute a damages action. The en banc court overruled Sternberg to the extent it was inconsistent with the en banc court’s opinion.
Karen objected to the accounting and fee application.
“Arizona’s family law statutes are not so broad,” he concluded.
ATTORNEY ENTITLED TO COLLECT BALANCE OF FEES FOLLOWING DISCHARGE OF CHAPTER 13 CASE Although attorney’s fees are ordinarily treated as administrative expenses during the pendency of a chapter 13, such that any unpaid fees still owed when the final discharge comes through are discharged, the bankruptcy code permits a different treatment if the plan is confirmed.In In re Johnson, __ B.R. __ (9th Cir. BAP 2006) the bankruptcy court originally held that the debtor’s attorney’s unpaid fees at the conclusion of the chapter 13 were discharged, because a chapter 13 discharge includes all debts provided for in the plan unless exempted from discharge; since attorneys’ fees are typically provided for in the plan and are not excepted from discharge, any unpaid balance is discharged.The Bankruptcy Appellate Panel reversed. Acknowledging that in the typical case the chapter 13 debtor’s unpaid attorney’s fees would be discharged, the court cited authority that a confirmed plan binds all parties, even if a provision of the plan is contrary to the Code. In this case, the debtor had signed off on a plan that was confirmed, and which contained a provision that any unpaid fees would not be discharged and that the attorney could collect directly from the debtor.
In ruling that the attorney’s fees were not discharged in this case, the court distinguished In re Hanson, 223 B.R. 775 (Bkrtcy.D.OR 1998), where the plan did not explicitly except the attorney’s fees from discharge.
In Schwartz-Tallard v. America’s Servincing Co. 2012 DJDAR 9091 (2012), the Bankruptcy Appellate Panel for the Ninth Circuit Court of Appeals decided a fee case under the so-called Sternberg bankruptcy doctrine. The doctrine was established under the Ninth Circuit’s decision in Sternberg v. Johnston, 595 F.3d 937 (9th Cir. 2010). Under this doctrine, attorney fees incurred in pursuit of damages for the violation of the automatic bankruptcy stay are recoverable as an exception to the American Rule. That rule states that the parties to litigation are required to pay their own attorney fees.
The debtor filed a Chapter 13 bankruptcy petition. The debtor made regular monthly mortgage payments, but the creditor asked for a lift of the stay, court granted the relief. Creditor sold home at foreclosure. Debtor proved payments current and court reinstated the automatic stay. The debtor moved for sanctions on the grounds that the creditor had violated the court’s stay order.
The bankruptcy court granted the sanctions motion. In addition, the court awarded the debtor damages and attorney fees. When the creditor appealed, the district court concluded that there had been a violation of the automatic stay. The debtor then moved for additional attorney fees incurred during the defense of the appeal. The creditor contended such fees were prohibited under the decision in Sternberg v. Johnson, cited above. The district court denied the request for the recovery of fees incurred on the appeal. The case was then appealed to the Ninth Circuit’s Bankruptcy Appellate Panel. The Ninth Circuit reversed the denial of the fee award. The Ninth Circuit noted that under the Sternberg doctrine, a debtor’s attorney fees incurred in “pursuit of damages” for a stay violation cannot be awarded as compensation for actual damages. However, a debtor’s appellate attorney fees may be awarded as actual damages for a stay violation. The Ninth Circuit reasoned that the debtor was defending a damages award for the creditor’s stay violation, and fees were appropriate under those circumstances.
APPEALS & ATTORNEY FEES:
In re Savage, EC-14-1074-JuKuPa (BAP May 14, 2015)
Appellee Leonard Brill (Brill) filed an adversary proceeding against chapter 71 debtor, Steven James Savage, seeking a determination that his claim against debtor was nondischargeable under § 523(a)(2) and (6) and requesting denial or revocation of debtor’s discharge under § 727(a)(2) and (4). After a trial, the bankruptcy court entered judgment in debtor’s favor on all claims for relief. Debtor then filed a motion seeking $65,476.90 in attorneys’ fees and costs (Fee Motion), which the bankruptcy court denied. This appeal followed.
Although debtor suggests we interpret the attorney fee provision broadly to cover all disputes arising out of the contract, we decline to do so. On its face, the express language of the attorney fee provision limits recovery of attorneys’ fees to actions relating to breach of the contract.
The narrow language employed cannot be construed to cover all actions “resulting from” the agreement as debtor argues. Also, neither the § 523 claims nor the § 727 claims were “disputes arising from the contract” between Brill and CDC. Accordingly, CCP § 1021 is of no help to debtor under these circumstances. Having found no error, we AFFIRM
In re Wallace, 9th Cir. BAP No. NV-13-1518-JuHlPa, October 28, 2014 “It is well settled that if a bankruptcy court finds that a party has willfully violated the discharge injunction, the court may award actual damages, punitive damages and attorney’s fees to the debtor. Espinosa v. United Student Aid Funds, Inc., 553 F.3d 1193, 1205 n.7 (9th Cir. 2008), aff’d 559 U.S. 260 (2010); Knupfer v. Lindblade (In re Dyer), 322 F.3d 1178, 1195 (9th Cir. 2003) (actual damages, including attorney’s fees, incurred as a result of the noncompliant conduct can be recovered as part of a compensatory civil contempt sanctions award). Applying the holding of In re Vasseli, 5 F.3d at 352., the Ninth Circuit concluded that a bankruptcy court’s express discretionary authority under § 105(a) to award fees at the trial level did not extend to allow it to award fees at the appellate level.
LAMIE v. US TRUSTEE (01/26/04 – No. 02-693) (U.S. Supreme Court) Bankruptcy Code section 330(a)(1) does not authorize compensation awards to debtors’ attorneys from estate funds, unless they are employed as authorized by section 327. To be paid from estate funds under section 330(a)(1) in a chapter 7 case, the attorney must be employed by the trustee and approved by the court.
SCHROEDER v. RO– USE (06/21/01 – No. 00-6092) Disgorgement of attorney’s fees is an appropriate sanction where the attorney violated the Bankruptcy Code, the procedural rules, and the local rules by failing to submit a statement detailing the attorney’s compensation relating to the bankruptcy proceedings.
See In re Philips, 520 B.R. 853 (Bankr. D. New Mexico 2014) (collecting cases and holding that attorney liens are generally secured claims and are not avoidable under 522(f) as judicial liens and In re Benbow, 496 B.R. 605 (Bankr. D. Colo. 2013) (attorney’s lien is not a judicial lien avoidable under 522(f), though separate judgment lien obtained by lawyer was). See also In re Sacerdote, 74 B.R. 487 (Bankr. E.D. Pa. 1987) (“A prepetition debt owed to an attorney may be a secured debt if the attorney’s claim is protected by one of the three Pennsylvania common law liens: a retaining lien; a legal charging lien; or an equitable charging lien.”).