In Re: Georges Marciano
|In Re Debtor:
||Elizabeth Tagle, Unsecured Creditors Committee, Steven Chapnick, Joseph Fahs and David K. Gottlieb
||March 20, 2012
||California Central District Court
||A. Howard Matz
|Nature of Suit:
||Bankruptcy Appeal (801)
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|Date Filed||#||Document Text|
|November 26, 2012
MINUTES (IN CHAMBERS) ORDER by Judge A. Howard Matz: Appellant-Debtor Georges Marciano and Hill, Farrer & Burrill, LLP appeal from two orders of the bankruptcy court. In the order at issue in the consolidated appeals CV 12-2353 and CV 12-2890, the ba nkruptcy court denied HFB's petition for retroactive approval of its representation of Marciano when he was a Chapter 11 debtor-in-possession. In CV 12-5042, Marciano and HFB appeal from a subsequent order ordering HFB to disgorge the compensati on it received for its representation of Marciano during that period. Bankruptcy law charges counsel for a debtor-in-possession with a fiduciary duty to the estate. By its own admission, HFB violated this duty while it was representing Marciano as th e debtor-in-possession. For this reason, the bankruptcy court did not abuse its discretion in denying HFB's retroactive application and ordering it to disgorge its fees. Thus, the Court AFFIRMS the orders of the bankruptcy court. (Made JS-6. Case Terminated.) (jp)
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