ASARCO and the High Cost of Getting Paid in the Fifth Circuit (and Maybe Everywhere)
This term, the U.S. Supreme Court will decide whether § 330(a) of the Bankruptcy Code grants a bankruptcy judge the discretion to award compensation for the defense of a fee application. This issue - one dear to any bankruptcy professional forced to defend a fee application - comes before the Court from the recent decision of the U.S. Court of Appeals for the Fifth Circuit in In re ASARCO LLC. 1 The court held that compensation for a successful defense of a fee application is never authorized by § 330(a).
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Gregory W. Werkheiser, “ASARCO and the High Cost of Getting Paid in the Fifth Circuit (and Maybe Everywhere),” ABI Journal (January 2014)