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*This outline is adapted from Chapter 27, Ethical Responsibilities,
Norton Bankruptcy Law & Practice 2d (Thomson-West 2005)
corporation owned by the same shareholder which was purchasing the estate's assets). One court has adopted a presumption against a single law firm, trustee or creditors' committee in most related debtor cases. In re Lee, 94
B.R. 172 (Bankr. C.D. Cal. 1988).
153See In re Huntco, Inc., 288 B.R. 229 (Bankr. E.D. Mo. 2002); In re Renfrew Center of Florida, Inc., 195 B.R. 335 (Bankr. E.D. Pa. 1996); In re Brennan, 187 B.R. 135 (Bankr. D.N.J. 1995); In re Palumbo Family Limited Partnership, 182 B.R. 447 (Bankr. E.D. Va. 1995); In re Chestnut Hill Mortgage Corp., 158 B.R. 547 (D. Mass. 1993); In re Professional Development Corp., 140 B.R. 467 (W.D. Tenn. 1992); In re Howell, 148 B.R. 269 (Bankr. S.D. Tex. 1992)("mom and pop" and their corporation); In re Creative Restaurant Management, Inc., 139 B.R. 902 (Bankr. W.D. Mo. 1992); In re Vanderbilt Associates, ltd., 117
B.R. 678 (D. Utah 1990)(two Chapter 11 limited partnership having a common general partner); In re Global Marine, Inc., 108 B.R. 998 (Bankr. S.D. Tex. 1987)(reading In re Consolidated Banc Shares, Inc., 785 F.2d 1249 (5th Cir. 1986) as requiring evidence of an actual conflict and finding in this case that debtors functioned as one enterprise, operated with singleness of purpose for benefit of the whole); In re Kelton Motors, Inc., 109 B.R. 641 (Bankr. D. Vt. 1989); In re Huddleston, 120 B.R. 399 (Bankr. E.D. Tex. 1990)(reading In re W.F. Development Corp., 905 F.2d 883 (5th Cir. 1990) as limited to partnerships and not requiring disqualification of counsel for a corporate debtor and its shareholder); In re O.P.M. Leasing Services, Inc., 16 B.R. 932 (Bankr. SDNY 1982) (same trustee and counsel authorized for parent and wholly owned subsidiary debtors where common goals, despite debt of subsidiary to parent); In re Iorizzo, 35 B.R. 465 (Bankr. E.D.N.Y. 1983) (interests joint on matters where seven debtors represented by same special counsel); In re Waterfall Village of Atlanta, Ltd., 103 B.R. 340 (Bankr. N.D. Ga. 1989); In re Tiffany Square Associates, Ltd., 103 B.R. 337 (Bankr. N.D. Ga. 1988); In re Stamford Color Photo, Inc., 98 B.R. 135 (Bankr. D. Conn. 1989); In re Lee Way Holding Co., 102 B.R. 616 (S.D. Ohio 1988); In re Carrousel Motels, Inc., 97 B.R. 898 (Bankr. S.D. Ohio 1989); In re Microwave Products of America, Inc., 104 B.R. 900 (Bankr. W.D. Tenn. 1989); In re O'Connor, 52 B.R. 892 (Bankr. W.D. Okla. 1985); see also In re Martin, 817 F.2d 175, 182 (1st Cir. 1987)(court is to decide whether potential conflict carries sufficient threat of material adversity to warrant prophylactic action), In re FSC Corp., 33 B.R. 212 (Bankr.
W.D. Pa. 1983) (estate paid for DIP's counsel to represent former officers in securities litigation essential
