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Monday, January 26, 2004

Supreme Court upholds Bankruptcy Code ruling on attorney compensation
Amit Patel at 12:01 PM ET

In a decision handed down this morning, the US Supreme Court affirmed an appeals court ruling that the federal Bankruptcy Code does not authorize compensation awards to debtors' attorneys unless employed under section 327. Additionally, if an attorney is to be paid from estate funds under section 330(a)(1) in a chapter 7 case, he must be employed by the trustee and approved by the court. The case is Lamie v. United States Trustee (case backgrounder from Duke Law School's Program in Public Law). Read the majority opinion by Justice Kennedy and the concurring opinion by Justice Stevens.



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