9th Circ. Backs Judges' Power To Ban Bankruptcy Advisers

Law360, New York (August 5, 2014, 5:44 PM EDT) -- The Ninth Circuit on Tuesday reaffirmed bankruptcy judges' discretion to effectively ban bankruptcy advisers in whom they've lost trust, refusing to rebuke an unnamed judge who boxed out an advisory firm that had repeatedly busted fee caps.

Chief Judge Alex Kozinski, writing for the appeals court, said comments from the judge didn't rise to the level of personal animosity and didn't evince an impermissible motive against a financial group that “substantially exceeded” its fee caps “almost every month it was retained.” 

The unnamed judge was quoted speaking about the group after an order limiting the group's fees was overturned on appeal...

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