LexisNexis® Legal Newsroom
Pilgrim's Pride Opinion Allows Enhancements in Bankruptcy, Offers Comprehensive Overview of Bankruptcy Fees

The Fifth Circuit has affirmed a $1 million fee enhancement to a chief restructuring officer who achieved results described as "rare and exceptional." Matter of Pilgrim's Pride Corp. , No. 11-10774 (5 th Cir. 8/10/12). The opinion can be found here . The Court rejected the argument that...

Fifth Circuit Reverses Excessive “Disgorgement” Remedy in Case Which (Also) Applied Pro-Snax to Chapter 13 Case

Finding that 11 U.S.C. §329(b) limited the court to disgorgement of the actual amount received, the Fifth Circuit has reversed the most draconian penalties assessed against an attorney who represented a former chapter 13 debtor. However, the portions of the case that were not appealed raise serious...

Will the Fifth Circuit Clarify Pro-Snax?

For chapter 11 debtor's lawyers, Matter of Pro-Snax Distributors, Inc. , 157 F.3d 414 (5th Cir. 1998) [ an enhanced version of this opinion is available to lexis.com subscribers ] is like the sword of Damocles--constantly hanging over counsel's head and threatening to deny compensation when a...

Fifth Circuit Panel Urges Re-Examination of Pro-Snax

The Fifth Circuit ruled on July 15 that a bankruptcy court following Matter of Pro-Snax Distributors, Inc. , 157 F.3d 414 (5th Cir. 1997) did not abuse its discretion in substantially reducing fees requested by counsel in a failed chapter 11 case. The Debtor's counsel argued that Pro-Snax was subject...