Does a professional representing a trustee or debtors-in-possession have to be a disinterested or disinterested person?

MultiRegion, United States of America

The following excerpt is from In re Sundance Self Storage–El Dorado LP, 482 B.R. 613 (Bankr. E.D. Cal. 2012):

The dual requirement that professionals representing trustees and debtors-in-possession may not hold or represent an interest adverse to the estate and must be disinterested persons does not evaporate once the attorney's employment is approved.32 In fact, the court may deny allowance of compensation for services and reimbursement of expenses of a professional person employed under section 327 ... if, at any time during such professional person's employment ..., such professional person is not a disinterested person, or represents or holds an interest adverse to the interest of the estate.... 328(c) (emphasis added). Essentially, 328(c) operates as a penalty for a professional's failure to avoid a disqualifying conflict of interest. See Rome v. Braunstein, 19 F.3d 54, 58 (1st Cir.1994).

Other Questions


Under what circumstances will the trustee of a personal injury claim against a person who has recently died? (MultiRegion, United States of America)
What is the effect of a contempt order against the trustees of a trustee in a personal injury case? (MultiRegion, United States of America)
What is the test for a personal representative of a deceased person to sue for damages in a medical malpractice case? ("New York", United States of America)
Does a person named as an executor in a will have title to the stock of a national bank when it is transferred to them as trustees on the books of the bank? (MultiRegion, United States of America)
Does the presumption that a person who makes a statement of intent to injure another person be liable for damages if that statement contains two statements of intent? (MultiRegion, United States of America)
Is a waiver to supersede personal information superseding personal information enforceable? (MultiRegion, United States of America)
Can new trustees of a society be found to have knowledge of an injunction that applies to and named only the former trustees? (Canada (Federal), Canada)
What is the fiduciary duty of a trustee in a personal trust? (Canada (Federal), Canada)
What is the legal test for professional membership of a professional association? (Canada (Federal), Canada)
What is the test for whether a person who has been found unfit to stand trial for murder by reason of reason is considered to be a "dangerous person" under s. 19(1)(a)(ii) of the Mental Health Act? (Canada (Federal), Canada)
X



Alexi white


"The most advanced legal research software ever built."

Trusted by top litigators from across North America.