Central District Consumer Bankruptcy Attorney's Association

Attached is the tentative ruling (which was adopted by the Court today)
ordering the Chapter 13 Trustee to comply with the terms of the Debtor's
confirmed Chapter 13 Plan which states in asterisked language that Debtor's
counsel's admin fees (including those pursuant to supplemental fee
applications) and fees of Debtor's special counsel are paid prior to other
admins in the case. Trustee made oral motion to stay pending appeal. Court
required Trustee to post a bond equal to my fees and special counsels' fees
in the sum of approx. $40K by 11//9/16 or no stay. *Where do the bond
funds come from? Trustee's pocket? *
This is beyond all reason and is outright vindictive. I am attaching here
the supplemental briefs filed in this case (not all the other pleadings)
because they are more easily digested for the narrow issues at hand. They
make reference to sections of other briefs filed that set forth in more
detail the relevant law. Basically, the Trustee is arguing that Debtor
cannot alter priority of payment within an administrative class even
with *conspicuous
language in the plan (that no one objected to 2 years ago and where the
Trustee has been COMPLYING WITH SAID TERMS under that
asterisked-and-different-font- language for almost 2 years.) Even the
court found the Trustee's argument to elevate form over substance. *
Wow,
The Court also clarified that he was only making a ruling as to the
alteration of language on a mandatory form as to THIS case and under the
specific facts of this case. Nevertheless, that was not enough for the
Trustee. The Trustee fears that everyone will start burying language in the
Plan that the Trustee won't see. As the Court pointed out, the additional
language in this plan was *conspicuous. *
Well, folks, tell me, do you think we will get a good appellate ruling out
of this? I mean, the language was conspicuous and complied with the local
rules for *adding *language to a mandatory form; the affected parties never
objected; the Trustee has been complying with the language for almost 2
years.
I understand there is controlling case law that says I can't get fees for
fighting for my fees, but what about if I am actually fighting to compel
the trustee to comply with the confirmed plan, (or, also fighting for the
fees of the special counsel of the Debtor?) We are not fighting about my
RIGHT to be paid; the fee orders were granted already. We are fighting
about my asterisked terms in the Plan which say that I and all of Debtor's
special counsel get paid before other admin claimants.
Note: this motion was originally styled as a motion for contempt against
the Trustee back in June of this year (2016) for failing and refusing to
comply with the terms of the Plan. The contempt was denied without
prejudice on procedural grounds but the Court stated that I would have a
high hurdle to show the Trustee is acting in bad faith and that he assumes
the Trustee is acting in good faith in every case. I wonder if he would
agree now? Today he said the Trustee seems to be "picking and choosing"
added plan language that he likes and doesn't like. (After all, I had to
"add" language to the Plan for the step up payments since the form doesn't
have room).
(As to special counsel's fees: we hired special counsel in this Chapter 13
to represent the debtor in 2 probate actions, which he did. He's now just
waiting to get paid per the Plan. All the briefs I filed reference both my
fees and his. He has not made any appearance on the matters, but he would.)
If the trustee does post the bond by 11/9/16, and files his appeal, can I
get fees for fighting this appeal, at least in part?
Interested to hear all your thoughts on this matter.
Holly Roark
Certified Bankruptcy Specialist*
*and Sports Lawyer*
holly@roarklawoffices.com **primary email address**
www.roarklawoffices.com
*Central District of California & District of Idaho* - Consumer Bankruptcy
Attorney
1875 Century Park East, Suite 600 Los Angeles, CA 90067
T (310) 553-2600; F (310) 553-2601
*By State Bar of California Board of Legal Specialization
Attached is the
tentative ruling (which was adopted by the Court today) ordering the Chapter 13 Trustee to comply with the terms of the Debtor's confirmed Chapter
The post was migrated from Yahoo.