7th Circuit Tosses Fee Appeal From GT Automation Buyer

Law360, New York (July 11, 2016, 3:13 PM EDT) -- In a written opinion issued Friday, a Seventh Circuit panel remanded to Indiana federal court an appeal over legal fees incurred in the bankruptcy of GT Automation Group Inc. for counsel that pursued collusion claims against the buyer of the company's assets, with instructions to dismiss the case.

In the opinion, the panel said that buyer and appellant, Arlington Capital LLC, which bought GT Automation's assets in a bankruptcy auction for $2.73 million, did not have standing to appeal the awarding of legal fees to attorneys for the bankruptcy trustee who accused Arlington of colluding with company insiders to depress the...

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