Legal Document

540 U.S. 526 LAMIEv.UNITED STATES TRUSTEE No. 02-693. Supreme Court of United States. Argued November 10, 2003. Decided January 26, 2004. Before 1994, § 330(a) the Bankruptcy Code authorized a court to "award trustee, an examiner, professional person employed under section 327 . ., or debtor's attorney" "(1) reasonable compensation for services rendered by such person, attorney. ." (Emphasis added highlight text later deleted.) In 1994 Congress amended with reform Act. The Act altered deleting "or from what was and is now 330(a)(1). This change created apparent legislative drafting error in current section. left missing "or" that infects its grammar. And inclusion "attorney" 330(a)(1) 330(a)(1)(A) defeats neat parallelism otherwise marks relationship between §§ ("trustee, [or] person") attorney"). this case, petitioner filed application seeking attorney's fees time he spent working on behalf debtor Chapter 7 proceeding. Government objected application. It argued makes no provision estate compensate attorney who not trustee approved 327. Petitioner admitted 327, but nonetheless contended fee award him because denying petitioner's application, Court, District Fourth Circuit all held proceeding does authorize payment unless has been appointed Held: Under Code's plain language, awards debtors' attorneys funds, they are as If be paid funds must court. Pp. 533-542. (a) argues look history determine Congress' intent existing statutory ambiguous light predecessor. He claims subsection (A)'s facially irreconcilable section's first part since two parts' lists were previously parallel. also only can explain conjunction "an examiner" "a person" grammatically correct. starting point discerning congressional intent, however, text, Hughes Aircraft Co. v. Jacobson, 525 432, predecessor statutes. So begins present statute. 533-534. (b) That statute awkward, even ungrammatical, make it at issue. A engaged fall within eligible class persons authorizes receive compensation: trustees, examiners, persons. Subsection (A) allows four types (the same three plus attorneys), applicant one classes named part, kind service irrelevant. conclusion. Numerous federal statutes inadvertently lack conjunction, read their meaning. Here, neither alters text's substance nor obscures nonparalleled fourth category cloud statute's "Attorney" straightforwardly refer those qualify Likewise, neighboring 331, which permits both interim compensation, most refers attorneys. reading may surplusage, surplusage always produce ambiguity. When there ways — either plain, nonsurplusage, applying rule against inappropriate. 534-536. (c) meaning sets forth lead absurd results. Petitioner's arguments Court's interpretation will departure principle prompt effectual administration bankruptcy law attributes eliminate essential receipt legal overstate 330(a)(1)'s effect. Compensation remains available through various permitted means. 12 13 bankruptcies, example, much disturbed 330 whole. Moreover, proceedings altogether prohibited. Sections 330, taken together, allow trustees engage attorneys, including counsel, courts them fees. Section 327's limitation incurring debts without trustee's approval advances responsibility preserving estate. Add sound functioning system Fifth Eleventh Circuits, have adopted approach, become unconvincing. prevent engaging common practice paying counsel advance ensure filing order. 536-538. (d) With nonabsurd view, "debtors' attorneys," effect enlarging scope. See Iselin States, 270 245, 251. unwillingness soften import chosen words if believes harsh outcome longstanding. 538-539. (e) Though unnecessary rely Act's history, instructive note creates more confusion than clarity about intent. History policy considerations lend support holding reached here. uncertainty illustrates difficulty relying advantage resting text. 539-542. 290 F. 3d 739, affirmed. KENNEDY, J., delivered opinion REHNQUIST, C. O'CONNOR, SOUTER, THOMAS, GINSBURG, BREYER, JJ., joined, SCALIA, joined except Part III. STEVENS, concurring judgment, SOUTER post, p. 542. CERTIORARI TO THE UNITED COURT OF APPEALS FOR FOURTH CIRCUIT. Thomas Goldstein cause petitioner. briefs John M. Lamie, pro se, Amy Howe, G. Eric Brunstad, Jr., A. E. Pottow, Craig Goldblatt. Lisa S. Blatt respondent. her brief Solicitor General Olson, Assistant Attorney Keisler, Deputy Hungar. JUSTICE KENNEDY Court.* 1 Code, 11 U. 330(a)(1), regulates fees, connection proceedings. Petitioner, attorney, sought provided bankrupt after converted bankruptcy. His denied States Appeals Circuit. Each Code. 701 et seq. so appointed, his request denied. Having granted petition certiorari review holding, we affirm. 2 * Reform (Act), 108 Stat. 4106. subject addressed comprehensive changes made. 3 Collier ¶ 330.LH[5], pp. 330-75 330-76 (rev. 15th ed. 2003). Most served clarify standards fees; disagree over proper portion relevant dispute, concerning replaced issue Compare 4130-4131 (§ 224(b) amending 330(a)) (1988 ed.). Act, had follows: 4 "(a) After notice any parties interest hearing, sections 326, 328, 329 title, 1103 5 actual, necessary paraprofessional .; 6 "(2) reimbursement expenses." Ibid. (emphasis deleted). Pursuant reads 8 "(a)(1) Trustee 329, 9 "(A) person; 10 "(B) As noted, enactment's principal, substantive alteration deletion five end 330(a)(1): attorney." error. grammar (i. e., person. ."). Furthermore, word "trustee, person"; 330(a)(1)(A): attorney") casts some doubt presence "attorney." pre-1994 grammatical parallel structure strengthens sense exists new Courts when asked interpret concluded language irrespective these quirks history. written, held, awarded extent payments 327," see, e. g., 327(a) (authorizing action "employ represent assist carrying out duties title"); 327(e) "employ, specified special purpose, other conducting represented debtor, re Pro-Snax Distributors, Inc., 157 414 (CA5 1998); American Steel Product, 197 1354 (CA11 1999). Second, Third, Ninth contrast, errors ambiguous, requiring consideration provision's shows intended continue qualification Ames Dept. Stores, 76 66 (CA2 1996); Top Grade Sausage, 227 123 (CA3 2000); Century Cleaning Services, 195 1053 (CA9 Bankruptcy, supra, 330-76. 14 interpretive divide became representation Equipment Inc. (ESI). ESI retained prepare, file, prosecute behalf. did so, while representing 742 (CA4 2002) (case below). 1107(a) debtor-in-possession exercise rights powers retain 327). Three months into reorganization, (Government) motion convert liquidation Government's pursuant 701, 701(a). terminated ESI's status debtor-in-possession. Yet continued provide ESI, though authorization do so. prepared reports detailing incurred property acquired initial filing; asset schedules; appeared hearing adversary complaint. 15 due course conversion. agreed 253 B. R. 724 (Bkrtcy. Ct. WD Va. 2000). (Petitioner before conversion contest fees.) 16 unsuccessfully reversal determination, see 260 273 (WD 2001), then Appeals, 739 2002). Both controlled debtors hired compensation. acknowledged deepened among fast "particularly supports Code," id., 745. We certiorari, 538 905 (2003), resolve II 17 requires us consult whether proceeding, where case ambiguity, comparing Thus, says "facially irreconcilable" 18 "[e]ither omitted `debtor's attorney' `payees' list, appeals relied, reference latter, list." Brief 17. 19 Similarly, respect says, 20 "[t]here reason, error, would rewritten incorrect provision." 21 analysis followed hold ambiguous. 129 (noting search ambiguity "[p]rior amendment, undisputed repetition officers meant listed 330(a)(1)"); 1057-1058 (engaging resort previous enactment inquire ambiguity). One determines contention, soundness prior contention wrong. 22 438 (1999), well established "when sole function least disposition required enforce according terms." Hartford Underwriters Ins. Union Planters Bank, N. A., 530 1, (2000) (internal quotation omitted) (quoting Ron Pair Enterprises, 489 235, 241 (1989), turn quoting Caminetti 242 470, 485 (1917)). begin 23 ungrammatical; persons: simply included further defines type awarded: reasonable; services; attorneys). Unless 24 our points numerous conjunction. They read, nonetheless, Respondent 17, n. 4. "not" substitutes "and." sentence awkward; yet straightforward. 25 render compensable reasons single sentence, appears strive whose compensable, provides order relief entered filed. 331 contemplates attorneys' receiving reason conclude go unmentioned clause. 26 "attorney," straightforward fashion qualified persons, is, context, (appointed title); 331's 27 that, surplusage. undoubtedly includes controlling, however. Surplusage preference avoiding constructions absolute. Chickasaw Nation 534 84, 94 (2001) "is sometimes offset canon reject `as surplusage' `inadvertently inserted repugnant rest statute'"). Where plain; nonsurplusage component 330(a)(1)), absent indications, should prefer approach respects Congress. manner avoid pitfalls plague too quick controversial realm B 28 results treat (citing Underwriters). disagrees "entail inexplicable, wholesale guiding `prompt administration' law." 30. "attribute[s] illogical, penny-wise pound-foolish determination entirely purportedly asset-preserving measure services." Id., 35. 29 These instruction First, filings, extend throughout law. See, 330(a)(4)(B) ("In chapter individual, 30 moreover, (e). absurd. context 31 add Seeming attended rule's years 1999); 1998). routine pay compliance requirements. generally Compensation, Employment Appointment Trustees Professionals Cases 3.02[1], 3-2 (2002) majority cases, accept individual joint consumer being retainer covers `standard fee' cost petition"). accords practice. Indeed, anticipates arrangements. (debtors' disclose year excessive returned estate). C 32 argument stumbles still harder ground face another interpretation. (1)(A) attorneys" result "not [in] construction [the] statute, but, effect, enlargement court, omitted, presumably inadvertence, scope." 251 (1926). need proceed way. "There basic difference filling gap silence rewriting rules affirmatively specifically enacted." Mobil Oil Corp. Higginbotham, 436 618, 625 (1978). 33 Our believe "deference supremacy Legislature, recognition Congressmen typically vote bill." Locke, 471 95 (1985) Richards 369 (1962)). 34 Adhering conventional doctrines interpretation, III 35 find behind reach based 36 instance, cites evidence supporting conclusion scrivener's real For 100 considered integral process. 1898, ch. 541, 59(d) 64(b), 561, 563. Kross, 96 816 (SDNY 1899). fair rework longstanding role announcing record. Cf. Cohen de la Cruz, 523 213, 221 (1998) ("We erode past clear indication departure" citation omitted)). 37 processes claim. original proposed draft featured changes: stylistic addition giving right object applications. 540, 103d Cong., 1st Sess. (1993), reprinted Rep. 103-168 (1993). end. Thus came immediately critical attorney," edited [sic] voting law, draft. 140 Cong. Rec. 8383 (1994) (setting amendment 1645 540). Amendment made deleted ("or remained intact. Legislative explains deletion, installed elsewhere, 330(a)(2). Nothing, second. reinstated reorganized), issue, preceded moved provision, notation suggests scrivener just far deletion. factors combined convince leading treatise Collier, ought 38 There aspects record, undermine suggest worked. designed curtail abuses awards, statements amendment's sponsor. Rec., 28753 (statement Sen. Metzenbaum). ghosts seen Some NRG Resources, 64 643 La. 1986). furthered ensuring work. objective inconsistent involving compensated different ways. 536-539. 39 1645, viewed entirety, gives think change. bankruptcies. (4)(B)). Since affected formers' new, broad exclusion. 40 prove point, House Representatives' inaction may. passed having impact, called attention. Reform: Hearing Subcommittee Economic Commercial Law Committee Judiciary, 2d Sess., 551 (1994). National Association Consumer Attorneys (NACBA), represents lawyers likely change, declined stating NACBA oppose" 1645's passage). alert, Legislature's nonresponse, presumption awareness intention. contain along error; trying fewest possible textual alterations 41 competing interpretations difficult say assurance lays better historical claim alert given, sure, final version, particular circumstance cannot bear weight. testimony witness hearing. consisted sentences contained 472 pages written subcommittee August day. Those 236 transcribed day's testifying witnesses. Within NACBA's filing, appear 18th page 27-page report. Nothing confirms bore deliberations given specific consideration. 42 uncertainties illustrate here 43 44 enacted something intended, amend conform "It beyond province rescue errors, might preferred result." Granderson, 511 39, 68 (concurring opinion). branches adhere respected, respective, constitutional roles. meantime, us. judgment 45 ordered. Notes: BREYER join entirety. SCALIA joins 46 concurring. 47 recognizes, ante, 539-540, amendments unintended Whenever plausible basis believing significant resulted I duty examine history.1 reveals (NACBA) assumed attention timely fashion, deemed unworthy objection.2 convinces me surely natural petitioner's, therefore concur judgment. FBAs Chief Justice Marshall stated, "Where mind labours discover design legislature, seizes every thing aid derived ."United Fisher, Cranch 358, 386 (1805). Seeante, 541. Specifically, Senate submitted comments Law, considering noted version "appears minor apparently inadvertent removal list professionals covered." proviso alleged corrected, expressly passage amendment. added).

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