DOUBLE DIAMOND DISTRIBUTION, LTD. V. GARM
- Summarized by Michael Myers , Ballard Spahr LLP
- 10 months 2 weeks ago
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- 24-1959 (9th Circuit, Apr 16,2025) Not Published
- Tag(s):
-
- Ruling:
- The Ninth Circuit Court of Appeals upheld the rulings in the District Court and Bankruptcy Court denying a Rule 60 motion of a fee order providing for joint and several liability for the fees by debtor and its non-debtor affiliate that had guaranteed the payment debtor's counsel's fees.
- Procedural context:
- The affiliate filed a motion under Rule 60(b)(4) and (b)(6) to set aside the fee order approximately three and a half years after the order was entered, after the affiliate had litigated its liability in Canada.
- Facts:
- The non-debtor , Double Diamond Distribution, Ltd., was an affiliate of debtor U.S.A. Dawgs, Inc. Double Diamond guaranteed the payment of Debtor's counsel because Debtor did not have the ability to pay bankruptcy counsel. After Debtor's assets were sold in the bankruptcy, Debtor's counsel applied for fees and the bankruptcy court approved the application. The fee order specific that Debtor and Double Diamond were jointly and severally liable for payment of the fees. Double Diamond refused to pay and litigated collection efforts in Canada for several years before filing the Rule 60 motion in bankruptcy court.
- Judge(s):
- Hawkins, Fisher, and R. Nelson
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