September 22, 2015 Practice Points

SCOTUS Rules in Baker Botts vs. Asarco

The case involved section 327(a) of the Bankruptcy Code and awarded fees.

By Alexander G. Najemy

The United States Supreme Court issued its opinion today in the matter of Baker Botts L.L.P. v. Asarco LLC, No. 14-103, holding that a law firm hired pursuant to section 327(a) of the Bankruptcy Code cannot be awarded fees for defending its fee applications under section 330(a).  As decided by the Supreme Court, โ€œ[b]ecause ยง330(a)(1) does not explicitly override the American Rule with respect to fee-defense litigation, it does not permit bankruptcy courts to award compensation for such litigation.โ€

Alexander G. Najemy โ€“ September 22, 2015