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High Court Knocks Down Attorneys' Fees Ban

Law360 (March 20, 2007, 12:00 AM EDT) -- The U.S. Supreme Court has rejected Pacific Gas and Electric Co.’s argument that Travelers Casualty & Surety Co. of America should be barred from collecting attorneys’ fees it accrued during the energy giant’s bankruptcy case, potentially throwing open the door to a mass of future fee claims.

On Tuesday, the High Court unanimously ruled that federal law does not bar creditors in Travelers’ circumstances from being able to recover attorneys’ fees in bankruptcy cases, sending the case back down to the U.S. Court of Appeals for...
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