  |
  |
  |
    
  
   |
 | |||
|
|
|
|
| |||
*This outline is adapted from Chapter 27, Ethical Responsibilities,
Norton Bankruptcy Law & Practice 2d (Thomson-West 2005)
In re Kelton Motors, Inc., 109 B.R. 641, 650 (Bankr. D. Vt. 1989) (violation of professional ethics does not result in automatic disqualification of counsel); see also Matter of Breen, 171 Ariz. 250, 252, 830 P.2d 462 (Ariz. 1992) (Bankruptcy Code restrictions on counsel representation of an estate do not release attorneys from duties under state ethics rules).
6Cash Media Systems, supra; In re Mortgage & Realty Trust, 195 B.R. 740 (Bankr. C.D. Cal. 1996). Counsel engages in the unauthorized practice of law if she appears in a bankruptcy court in which she is not admitted. In re Brown, 270 B.R. 43 (Bankr. D. S.C. 2001).
7See, e.g. 11 U.S.C. §§ 323, 704, 721, 1106, 1107. The debtor and his counsel may have a significant role to play in a Chapter 7 case, too, warranting court control over the attorney's conflicts of interest. In re Nu-South Industries, Inc., 115 B.R. 90 (Bankr. S.D. Miss. 1990). For a comprehensive article on the issues set forth in this outline, see Kelbon, Herman and Bell, Conflicts, The Appointment of "Professionals," and Fiduciary Duties of Major Parties in Chapter 11, 8 Bankr. Dev. J. 349 (1991).
8E.g. Model Rules of Professional Conduct ("Model Rules") 1.1- 1.9.
9E.g. Model Rules 3.1- 3.4, 4.1- 4.4; In re Dinova, 212 B.R. 437 (2d Cir. BAP 1997) (attorney duties of candor and full disclosure to bankruptcy court).
10See In re JLM, Inc., 210 B.R. 19 (2d Cir. BAP 1997); In re Bonneville Pacific Corp., 196 B.R. 868 (Bankr. D. Utah 1996) rev'd in part in case with thorough analysis of DIP counsel's fiduciary duties, Hansen, Jones & Leta P.C. v. Segal, 220 B.R. 434 (D. Utah 1998); In re Rivers, 167 B.R. 288 (Bankr. N.D. Ga. 1994); In re United Utensils Corp., 141 B.R. 306 (Bankr. W.D. Pa. 1992); In re Doors and More, Inc., 126 B.R. 43 (Bankr. E.D. Mich. 1991); Matter of Arlan's Department Stores, Inc., 615 F.2d 925 (2d Cir. 1979); In re Kelton Motors, Inc., 109 B.R. 641 (Bankr. D. Vt. 1989); In re Coastal Equities, Inc., 39 B.R. 304 (Bankr. S.D. Cal. 1984). See also In re Hudsar, 199 B.R. 266 (Bankr. D.N.J. 1996)(DIP counsel may be liable in malpractice to non-client creditor if assumes fiduciary duty to creditor).
1111 U.S.C. §§326-329. Bankruptcy Rules 2014, 2016 and 2017 provide for implementation of these provisions.
12The bankruptcy court also has broad powers to prevent an abuse of process and enforce court rules and orders under 11 U.S.C. §105, but contempt may need to be determined by the district court. In re Ragar, 3 F.3d 1174 (8th Cir. 1993)(appropriate method for imposing contempt described; circuit cases dis
cussed); Bankruptcy Rule 9020.
1311 U.S.C. § 707(b)(4)(A), (5)(A).
14 11 U.S.C. § 707(b)(4)(B).
15 11 U.S.C. § 707(b)(4)(C), (D).
16 11 U.S.C. § 707(b)(4)(C).
17 109 P.L. 8 § 319.
18 11 U.S.C. § 101(3), (4A), (12A). But see In re Attorneys at Law and Debt Relief Gaencies, 332 B.R. 66 (Bankr. S.D. Ga.. 2005) (holding in absence of a case that attorneys are not debt relief agencies); contra, In re McCartney, 2006 WL 75306 (Bankr. M.D.Ga. 2006). 19 11 U.S.C. § 526(c). 20 11 U.S.C. § 526(d). 21But see Regensteiner Printing Co. v. Graphic Color Corp., 142 B.R. 815 (N.D. Ill. 1992)(bankruptcy court lacks jurisdiction to impose sanctions under §1927 since it is not a "court of the United States"). 2218 U.S.C. § 152. 2318 U.S.C. § 153.
