In re: Sweports, Ltd.

Federal 7th Circuit Court
Civil Court
Attorney Fees
Citation
Case Number: 
No. 14-2423
Decision Date: 
January 9, 2015
Federal District: 
Bankruptcy Ct., N.D. Ill., E. Div.
Holding: 
Reversed and remanded
Bankruptcy Ct. erred in denying on jurisdictional grounds law firm’s request for $780,000 in attorney fees generated while representing Official Committee of Unsecured Creditors during bankruptcy proceeding, even though law firm made such request after bankruptcy proceeding had been dismissed and assets of bankruptcy estate had been returned to debtor. Bankruptcy Ct. had jurisdiction to act on said fee request, since Bankruptcy Ct. had jurisdiction to determine whether law firm had valid claim to services generated during bankruptcy proceeding, and since, regardless of whether debtor had reacquired bankruptcy estate, law firm could subsequently take any favorable ruling to state court to enforce said ruling like any other judgment against debtor. Moreover, law firm was not required to ask Bankruptcy Ct. to “reserve” jurisdiction over said fee request prior to instant dismissal of bankruptcy proceeding.