Lehman Court Imposes New Limitations On Professional Fees
April 22, 2014, 1:46 PM EDT
Law360, New York (April 22, 2014, 1:46 PM EDT) -- In the recent case of Davis v. Elliot Management Corp. (In re Lehman Brothers Holdings Inc.), 2014 U.S. Dist. LEXIS 48102 (S.D.N.Y. Mar. 31, 2014), the District Court for the Southern District of New York issued a decision barring reorganization plans from paying legal fees of individual members of official creditors committees absent a showing of substantial contribution to the estate.
In so holding, the district court disapproved a trend among New York bankruptcy courts to permit such payments if they are expressly included in the...