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Summarizing by Lars Fuller

Gilman v. Tammy R. Phillips (In re Gilman)

Case Type:
Case Status:
No. CC-18-1066-TaLS, 2019 WL 3074607 (9th Circuit, Jul 12,2019) Published
When a creditor voluntarily files a CCP § 685.080 motion with the bankruptcy court for an award of postpetition attorneys' fees, § 108(c) does not toll the two-year limitation in CCP § 685.080.
Procedural context:
Debtor filed a chapter 7 petition. Creditors obtained a determination that debtor was not entitled to a discharge. Creditors actively litigated issues. The bankruptcy court determined that they were entitled to an award of reasonable fees in connection with this activity. Creditors requested approximately $750,000 in fees arising from the main case activity and $1,400,000 in fees in the adversary proceeding. They also requested costs. The bankruptcy court awarded $137,907.66 and $166,453.58, respectively, in fees and costs. A partial basis for the fee reduction in both the main case and the adversary proceeding was the applicability of California Code of Civil Procedure (CCP) § 685.080, which creates a two-year deadline for requesting fees incurred in collection activities, and § 108(c)(2), which tolls the time for certain actions during the pendency of a bankruptcy court.
Creditors obtained an $8,250 judgment against debtor. The state court awarded them about $100,000 in prepetition fees.
Taylor, Lafferty, Spraker

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