Despite “Poor Performance,” Court Awards Debtors’ Counsel $70,000 in Fees in case where Debtors were Awarded $45 million in Punitive Damages against Bank of America

Despite “Poor Performance,” Court Awards Debtors’ Counsel $70,000 in Fees in case where Debtors were Awarded $45 million in Punitive Damages against Bank of America

This Motion to Expunge an attorneys’ fee lien asserted by the debtors’ former attorney involves an important tool in the judicial toolbox for addressing the dilemma of counsel who incompetently represent debtors who have a meritorious case.

Former counsel asserts an attorneys’ fee lien as a challenge to the bankruptcy court’s power to cancel an attorneys’ contract under Bankruptcy Code § 329(b), 11 U.S.C. § 329(b), and to limit fees for debtors’ counsel to “reasonable” compensation.

The lien is being used as a device to create “hold-up” value by impeding settlement efforts by plaintiffs and defendant in order to extract a fee “far higher” than what this court authorized as “reasonable” compensation under § 329(b).

 

The lien is being used as a device to create “hold-up” value by impeding settlement efforts by plaintiffs and defendant in order to extract a fee “far higher” than what this court authorized as “reasonable” compensation under § 329(b).

 

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