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Conflict of interest?
Hello esteemed bankruptcy bar:Is there a conflict of interest in this scenario?Entity 1 holds technology that one of its shareholders wants to exploit with a new group of investors. There is a lot of debt associated with the business. The shareholder wants to put the entity into bankruptcy, and have his investor group's new entity (Entity 2) make a bid for the technology. In the shareholder's vision, the trustee sells the technology to Entity 2 after proper notice and process. I believe the shareholder may be a minority owner in each of the entities.If I were to represent both Entity 1 in its chapter 7 case, and Entity 2 when it seeks to purchase the assets from the trustee, is that a conflict of interest? I don't think so, as my duties to the chapter 7 debtor are done when the meeting of creditors is over, and my duties to Entity 2 don't start until the trustee starts marketing the assets after the meeting of creditors. Entity 1's interest is in winding down peacefully under the trustee's aegis; Entity 2's interest is in purchasing the assets as cheaply as possible. The trustee, not Entity 1, has the interest in maximizing gain on the assets.But the dual role makes me a bit uneasy, and so I invite your learned and thoughtful commentary.- John D. Faucher818/889-8080
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Thanks, Patrick. The dual representation feels wrong to me, but I think you
have the right analysis, and I cant find a way to actually challenge it.
Boyfriends attorney will get information about a transaction thats not
directly relevant to the 523 action; I just have to be vigilant about using
the FRE to make sure its not introduced into the 523 action.
- John D. Faucher
On 11/12/10 3:00 PM, "Patrick Green" wrote:
>
>
>
>
>
> John:
>
> What would be the basis of challenge? The conflict has to be between their
> clients, not just a problem for your client that they represent two parties
> that are adverse to your clients. Are the trustee and boyfriend in conflict?
> I dont see how. One wants to get property into the estate and the other
> wants a debt to be non-dischargable.
>
>
> If you have any questions or concerns, please contact me.
>
> Pat
>
> Patrick T. Green, Esq.
> Fitzgerald & Green
> Attorneys at Law
> 1010 E. Union Street
> Suite 206
> Pasadena, CA 91106
> Tel: 626-449-8433
> Fax: 626-449-0565
> pat@fitzgreenlaw.com
>
>
>
John
> Faucher
> Sent: Friday, November 12, 2010 2:33 PM
> To: cdcbaa@yahoogroups.com
> Subject: [cdcbaa] Conflict of interest?
>
>
>
> Hello Listmates:
> I represent a debtor being sued by a jilted ex-boyfriend for money she
> allegedly embezzled while shacking up with him. Law Firm A has filed a
> non-dischargeability complaint relating to this matter.
> The chapter 7 trustee has now found a potential fraudulent transfer from
> the debtor to her daughter: debtor gave the daughter a piece of real property
> in return for future support, then filed bk, and didnt disclose the
> transaction. Trustee is hiring Law Firm A to set aside the fraudulent
> transfer, but has not filed an employment application.
> I have answered the non-dischargeability complaint, and I have written a
> letter to Law Firm A explaining the alleged fraudulent transfer (after getting
> both mother and daughter to sign a retainer waiving potential conflicts of
> interest). Law Firm A responded by asking for more detailed information
> regarding the transfer. Mother and daughter are now balking at providing that
> information because they dont want the ex-boyfriends attorney to have it as
> ammunition in the dischargeability suit.
> Can I now challenge Law Firm As representation of the chapter 7 trustee,
> and refuse to provide documentation to it? Have I waived this challenge by
> writing to Law Firm A regarding the transfer? We have no problem providing
> this information to the trustee directly.
>>>>
>>>> John D. Faucher
>>>> Hurlbett & Faucher
>>>> 5743 Corsa Ave., Suite 208
>>>> Westlake Village, CA 91362
>>>> (818) 889-8080
>>>> Fax: (805) 367-4154
>>>> http://www.hurlbettfaucher.com/
>>>>
>>>> 3324 State Street, Suite O
>>>> Santa Barbara, CA 93105
>>>> (805) 963-9111
>
> This electronic mail message and any attached files are confidential, contain
> information intended for the exclusive use of the individual or entity to whom
> it is addressed, and may be legally privileged. If you are not the intended
> recipient, please immediately reply to John Faucher (at 805/963-9111 x103 or
> john@hf-bklaw.com) indicating that you received this message and then delete
> the message without delay. Thank you for your cooperation.
>
> Disclosure Under U.S. IRS Circular 230: The recipient may not use any tax
> advice contained in this communication, including any attachments, for the
> purpose of avoiding federal tax related penalties or promoting, marketing or
> recommending to another party any particular transaction or matter.
>
>
>
>
>
>>> - John D. Faucher
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Re: [cdcbaa] Conflict of interest?
Thanks, Patrick. The dual representation feels wrong to me, but I think you have the right anal
The post was migrated from Yahoo.
John:
What would be the basis of challenge? The conflict has to be between their
clients, not just a problem for your client that they represent two parties
that are adverse to your clients. Are the trustee and boyfriend in
conflict? I don't see how. One wants to get property into the estate and
the other wants a debt to be non-dischargable.
If you have any questions or concerns, please contact me.
Pat
Patrick T. Green, Esq.
Fitzgerald & Green
Attorneys at Law
1010 E. Union Street
Suite 206
Pasadena, CA 91106
Tel: 626-449-8433
Fax: 626-449-0565
pat@fitzgreenlaw.com
The post was migrated from Yahoo.
charset="ISO-8859-1"
Hello Listmates:
I represent a debtor being sued by a jilted ex-boyfriend for money she
allegedly embezzled while shacking up with him. Law Firm A has filed a
non-dischargeability complaint relating to this matter.
The chapter 7 trustee has now found a potential fraudulent transfer from
the debtor to her daughter: debtor gave the daughter a piece of real
property in return for future support, then filed bk, and didnt disclose
the transaction. Trustee is hiring Law Firm A to set aside the fraudulent
transfer, but has not filed an employment application.
I have answered the non-dischargeability complaint, and I have written a
letter to Law Firm A explaining the alleged fraudulent transfer (after
getting both mother and daughter to sign a retainer waiving potential
conflicts of interest). Law Firm A responded by asking for more detailed
information regarding the transfer. Mother and daughter are now balking at
providing that information because they dont want the ex-boyfriends
attorney to have it as ammunition in the dischargeability suit.
Can I now challenge Law Firm As representation of the chapter 7
trustee, and refuse to provide documentation to it? Have I waived this
challenge by writing to Law Firm A regarding the transfer? We have no
problem providing this information to the trustee directly.
>>>> John D. Faucher
>>>> Hurlbett & Faucher
>>>> 5743 Corsa Ave., Suite 208
>>>> Westlake Village, CA 91362
>>>> (818) 889-8080
>>>> Fax: (805) 367-4154
>>>> http://www.hurlbettfaucher.com/
>>>>
>>>> 3324 State Street, Suite O
>>>> Santa Barbara, CA 93105
>>>> (805) 963-9111
This electronic mail message and any attached files are confidential,
contain information intended for the exclusive use of the individual or
entity to whom it is addressed, and may be legally privileged. If you are
not the intended recipient, please immediately reply to John Faucher (at
805/963-9111 x103 or john@hf-bklaw.com) indicating that you received this
message and then delete the message without delay. Thank you for your
cooperation.
Disclosure Under U.S. IRS Circular 230: The recipient may not use any tax
advice contained in this communication, including any attachments, for the
purpose of avoiding federal tax related penalties or promoting, marketing or
recommending to another party any particular transaction or matter.
charset="ISO-8859-1"
Conflict of interest?
Hello Listmates:
I represent a debtor being sued by a jilted ex-boyfriend for money she allegedly embezzled while shacking up with him. Law Firm A has filed a non-dischargeability complaint relating to this matter.
The chapter 7 trustee has now found a potential fraudulent transfer from the debtor to her daughter: debtor gave the daughter a piece of real property in return for future support, then filed bk, and didn’t disclose the transaction. Trustee is hiring Law Firm A to set aside the fraudulent transfer, but has not filed an employment application.
I have answered the non-dischargeability complaint, and I have written a letter to Law Firm A explaining the alleged fraudulent transfer (after getting both mother and daughter to sign a retainer waiving potential conflicts of interest). Law Firm A responded by asking for more detailed information regarding the transfer. Mother and daughter are now balking at providing that information because they don’t want the ex-boyfriend’s attorney to have it as ammunition in the dischargeability suit.
Can I now challenge Law Firm A’s representation of the chapter 7 trustee, and refuse to provide documentation to it? Have I waived this challenge by writing to Law Firm A regarding the transfer? We have no problem providing this information to the trustee directly.
John D. Faucher
Hurlbett & Faucher
5743 Corsa Ave., Suite 208
Westlake Village, CA 91362
(818) 889-8080
Fax: (805) 367-4154
http://www.hurlbettfaucher.com/
3324 State Street, Suite O
Santa Barbara, CA 93105
(805) 963-9111
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