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Access over workers' compensation decisions, including En Banc, Significant Panel Decisions, and writ-denied cases.

Case No. MISSING
Regular Panel Decision

In re Headlee Management Corp.

This memorandum decision addresses a Chapter 7 trustee's motion to disgorge interim Chapter 11 professional fees. The trustee sought disgorgement due to the administrative insolvency of the Chapter 7 estate, which would prevent pro rata distribution to Chapter 11 administrative claimants if interim payments were retained. Chief United States Bankruptcy Judge Cecelia G. Morris denied the motion. The court concluded that the Bankruptcy Code, specifically §§ 726(b) and 330(a)(5), does not provide statutory authority to compel disgorgement of interim fees solely based on administrative insolvency upon conversion. It further determined that § 105(a) cannot be used to create such a remedy when the Code already provides specific provisions for fee recovery.

BankruptcyChapter 7Chapter 11Professional FeesDisgorgementAdministrative InsolvencyInterim FeesConverted CaseBankruptcy Code Section 726(b)Bankruptcy Code Section 330(a)(5)
References
25
Case No. MISSING
Regular Panel Decision

O'Connell v. Mann (In Re Davila)

Daniel E. O’Connell, Standing Chapter 13 Trustee, filed a complaint against attorney Frank E. Mann, III, seeking fee reduction, disallowance, and disgorgement in 155 Chapter 13 bankruptcy cases. The Court found Mann engaged in a pattern of misconduct, including accepting unapproved fees, falsifying client schedules, and suborning perjury, in violation of bankruptcy laws and professional conduct rules. Mann's practice relied heavily on untrained legal assistants, resulting in inaccurate client disclosures and inadequate legal advice. The Court concluded that Mann's services were akin to a petition preparer and he was incompetent in bankruptcy matters. Consequently, the Court denied all claimed fees, ordered Mann to disgorge previously received fees, and suspended him from practicing before the presiding judge.

Bankruptcy Attorney MisconductFee DisgorgementAttorney SuspensionProfessional Ethics ViolationsFalsified Client SchedulesSubornation of PerjuryUnapproved Attorney FeesChapter 13 BankruptcySouthern District of TexasTrustee Complaint
References
9
Case No. Consolidated Chapter 13 Cases (e.g., 91-20422 to 97-36152)
Regular Panel Decision

In Re Phillips

This Memorandum Opinion and Order addresses objections by chapter 13 trustees to the postpetition claims for attorney's fees and expenses filed by William A. Cohn, an attorney representing numerous chapter 13 debtors. Mr. Cohn had routinely filed these claims under 11 U.S.C. § 1305(a)(2), arguing it served as an alternative to the § 330 procedures for professional compensation. The Court found that § 1305(a)(2) is intended for exigent circumstances where prior trustee approval is impracticable, not for routine legal work, and that Mr. Cohn failed to meet its conditions. It emphasized that § 330, which requires notice, a hearing, and detailed documentation, is the appropriate procedural vehicle for approving attorney's fees to ensure reasonableness and benefit to the debtor. Consequently, the Court disallowed all of Mr. Cohn's postpetition claims filed under § 1305(a)(2), vacated prior administrative orders that had mistakenly allowed these claims, and ordered Mr. Cohn to either file proper § 330(a)(4)(B) applications with full time and expense documentation by July 31, 1998, or disgorge all received postconfirmation fees and expenses by August 14, 1998.

Bankruptcy LawChapter 13 ProceedingsAttorney CompensationPostpetition ClaimsFee ApplicationsDisgorgement of FeesProcedural ComplianceProfessional EthicsJudicial ReviewAdministrative Errors
References
15
Case No. 2022 NY Slip Op 05964 [209 AD3d 596]
Regular Panel Decision
Oct 25, 2022

Pirozzo v. Laight St. Fee Owner LLC

Plaintiff Paul Pirozzo sought summary judgment on his Labor Law § 240 (1) claim against defendants Laight Street Fee Owner LLC, Laight Street Fee Owner II LLC, and Sciame Construction, LLC, which was granted by the Supreme Court. The Appellate Division, First Department, affirmed this decision. The plaintiff established a prima facie case by demonstrating that the scaffold he was working on collapsed without an apparent reason. The defendants' arguments that the plaintiff was the sole proximate cause, either by failing to lock scaffold pins or remaining on the scaffold while it was moved, were deemed unavailing. The court noted that these actions, even if proven, would amount to comparative negligence, which is not a defense to a Labor Law § 240 (1) claim, and there was no evidence of specific instructions to the plaintiff that were disobeyed.

Summary judgmentLabor Law § 240 (1)Scaffold collapseSole proximate causeComparative negligenceWorkers' compensation Form C-2Hearsay objectionPersonal knowledgeRecalcitranceAppellate Division
References
9
Case No. 04-MD-1596
Regular Panel Decision
Mar 20, 2006

In Re Zyprexa Products Liability Litigation

This order by Senior District Judge Weinstein addresses legal fee allocation in a coordinated multi-district litigation against Eli Lilly & Company concerning the prescription drug Zyprexa. Following a partial settlement covering approximately 8,000 individual plaintiffs, the court adopted a proposal from special settlement masters regarding fee caps. The court modified the proposed cap, reducing it from 37.5% to 35% for most recoveries, while maintaining a 20% cap for "Track A" settlements. The special masters are granted discretionary authority to adjust fees within a range of 30% to 37.5% based on individual case circumstances, with appeal rights to the court. The decision emphasizes the court's inherent authority to supervise attorney fees, particularly in quasi-class actions and mass litigations, to ensure fairness and prevent excessive charges to clients, drawing parallels to class action rules and state laws limiting contingent fees.

Mass TortMulti-District LitigationFee AllocationContingency FeesAttorney FeesEthical SupervisionSettlementZyprexa LitigationQuasi-Class ActionJudicial Discretion
References
23
Case No. MISSING
Regular Panel Decision

In re Currency Conversion Fee Antitrust Litigation

This Memorandum and Order addresses plaintiffs' motion for reconsideration of a prior decision concerning a class action alleging an antitrust price-fixing conspiracy by VISA, MasterCard, and their member banks related to foreign currency conversion fees. The Court denied the plaintiffs' motion for reconsideration, upholding its earlier finding that network defendants did not waive their right to arbitration because compelling arbitration would have been futile under then-existing law. Additionally, the Court denied reconsideration on several other procedural matters, including the creation of subclasses, membership of specific cardholder subclasses, representation of Diners Club and Providian cardholders, and a request for further discovery, citing the untimeliness of new arguments and the plaintiffs' failure to meet the burden of proof for class certification requirements.

Antitrust LitigationClass Action ProcedureArbitration AgreementsWaiver of ArbitrationEquitable EstoppelForeign Currency Conversion FeesReconsideration MotionSherman ActTruth in Lending ActDeceptive Trade Practices
References
43
Case No. MISSING
Regular Panel Decision
May 01, 2005

In Re Balderas

This decision addresses post-confirmation attorneys' fees in Chapter 13 bankruptcy cases, using the Balderas case as a factual background. The debtors in the Balderas case sought modification of their plan due to payment defaults and requested $350 in attorney's fees for the motion. The court outlines the history of the Balderas' numerous modifications, moratoriums, and associated attorney fee awards, totaling $3,495, highlighting how these fees were paid out of plan distributions at the expense of creditors. The court analyzes sections 1326(b)(1) and 330(a)(4)(B) of the Bankruptcy Code to determine the reasonableness and payment method of such fees. Ultimately, the court establishes new rules for post-confirmation attorney fee awards in the Western District of Texas, San Antonio Division, including a $2,500 prima facie base fee, a $100 per month payment rate for additional fees, and specific guidelines for various types of motions. The current $350 fee request for the Balderas case's moratorium is approved but with caution against future similar requests.

BankruptcyChapter 13Attorneys' FeesPost-Confirmation FeesPlan ModificationCreditor DistributionsSecured ClaimsAdministrative ExpensesDebtor RepresentationFeasibility
References
26
Case No. MISSING
Regular Panel Decision

Yeshiva University v. New England Educational Institute, Inc.

In a Lanham Act action, defendants, who prevailed after a jury trial against plaintiff Yeshiva, sought approximately $50,000 in attorney's fees. The application presented a novel question: whether a prevailing defendant is entitled to fees when the plaintiff's liability claims were asserted in good faith but the damage claims were grossly exaggerated. The court first affirmed the applicability of the Lanham Act's attorney fee provision, § 35(a), to actions involving unregistered marks, citing precedent. Despite acknowledging the plaintiff's highly exaggerated damage claims, the court determined that the case, which was close on the merits regarding the initial copying allegations, did not meet the 'exceptional cases' standard required for awarding attorney's fees to a prevailing defendant. Consequently, the defendants' application for attorney's fees was denied.

Lanham ActAttorney's FeesPrevailing DefendantExceptional CasesUnregistered MarkDamage ClaimsExaggerated DamagesGood Faith LitigationJury VerdictNon-profit Dispute
References
7
Case No. MISSING
Regular Panel Decision

King v. Allied Vision, Ltd.

This case involves a plaintiff's motion for attorney's fees following a remand from the Second Circuit Court of Appeals. Plaintiff Stephen King sought fees due to defendant New Line Cinema's contempt of court for numerous violations of a Final Consent Decree concerning the misattribution of 'The Lawnmower Man' film. The District Court had previously found the defendant in contempt and awarded fees in 1994 and 1995. The Second Circuit affirmed some parts of the 1994 order but vacated others, along with the entire 1995 order, remanding the attorney's fees issue for reconsideration, specifically questioning the willfulness of the noncompliance. Upon review, this court concluded that while the defendant's conduct was negligent and contumacious, it did not meet the clear and convincing evidence standard for willfulness required for an award of attorney's fees for civil contempt under Second Circuit law. Consequently, the plaintiff's motion for attorney's fees was denied.

Civil ContemptAttorney's FeesWillfulness StandardSecond Circuit RemandConsent Decree ViolationsLanham ActFilm MisattributionThe Lawnmower ManInjunctive ReliefCompensatory Damages
References
27
Case No. MISSING
Regular Panel Decision
Feb 21, 2014

Marin v. Constitution Realty, LLC

This case involves an appeal from an order regarding the division of attorneys' fees among Sheryl Menkes (appellant), David B. Golomb, and Jeffrey A. Manheimer (respondents). Menkes, attorney of record for plaintiffs in a personal injury action, had agreements with both Golomb and Manheimer for fee sharing. The primary dispute concerned Golomb's share, contingent on whether the case settled at a specific mediation session (12% fee) or later (40% fee). The court affirmed the lower court's decision, finding the contract unambiguous that the mediation session concluded on a specific date, entitling Golomb to the higher fee, and that Manheimer was entitled to 20% as per his agreement. The court rejected Menkes's arguments based on contract interpretation and professional conduct rules.

Attorney's FeesContract InterpretationMediation AgreementFee DisputePersonal Injury ActionQuantum MeruitProfessional ConductNew York LawSettlement NegotiationsStructured Settlement
References
13
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