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explaining that employment of special counsel under 11 U.S.C. § 327(e) does not require the attorney to be a disinterested person, unlike employment of general counsel under § 327
Summary of this case from Klitzke v. DCP Midstream, LLCOpinion
Nos. 08-60011, 08-60013.
The panel unanimously finds this case suitable for decision without oral argument. See Fed.R.App.P. 34(a)(2).
Filed December 14, 2009.
Martin M. Shapero, Esquire, Steven J. Shapero, Esquire, Shapero Shapero, Woodland Hills, CA, for Appellees.
Appeals from the Ninth Circuit Bankruptcy Appellate Panel, Dunn, Montali, and Pappas, Bankruptcy Judges, Presiding. BAP Nos. CC-07-1137-DMoPa, CC-07-1160-DMoPa.
Before: ALARCÓN, TROTT, and TASHIMA, Circuit Judges.
This disposition is not appropriate for publication and is not precedent except as provided by 9th Cir. R. 36-3.
In these consolidated appeals, Won Ho Song and Eun Ja Song appeal pro se from the judgment of the Bankruptcy Appellate Panel ("BAP") affirming the bankruptcy court's order approving $2.5 million in attorney's fees for services rendered by Sung Bae Park and Shapero, Shapero Hurst (collectively, "special counsel") to the chapter 7 trustee. Special counsel cross-appeals from the judgment of the BAP reversing the bankruptcy court's award of costs. We have jurisdiction pursuant to 28 U.S.C. § 158(d). We review de novo the BAP's judgment, Leavitt v. Soto (In re Leavitt), 171 F.3d 1219, 1222-23 (9th Cir. 1999), and we affirm the BAP judgment. Appeal No. 08-60011:
The bankruptcy court did not abuse its discretion by awarding compensation to special counsel because Sung Bae Park's representation of the trustee was not in violation of bankruptcy law or state professional conduct rules. See Pitrat v. Reimers (In re Reimers), 972 F.2d 1127, 1128 (9th Cir. 1992) ("This court will not disturb a bankruptcy court's award of attorney's fees absent a finding that the court abused its discretion or erroneously applied the law.") (internal citation and quotation marks omitted).
The Songs' remaining contentions lack merit.
Special counsel's motion to strike portions of the excerpts of record is granted. See Graves v. Myrvang (In re Myrvang), 232 F.3d 1116, 1119 n. 1 (9th Cir. 2000) (granting a motion to strike evidence that was not part of the record before the bankruptcy court).
Appeal No. 08-60013
We agree with the BAP that the bankruptcy court abused its discretion by awarding costs to special counsel because costs were excluded under the terms of the employment agreement between the trustee and special counsel, and the bankruptcy court had found that the agreement was not improvident. In re Reimers, 972 F.2d at 1128 ("Under section 328, where the bankruptcy court has previously approved the terms for compensation of a professional, when the professional ultimately applies for payment, the court cannot alter those terms unless it finds the original terms to have been improvident. . . .") (internal citation and quotation marks omitted).
AFFIRMED.
Appeal No. 08-60011: AFFIRMED. Appeal No. 08-60013: AFFIRMED.