Law v. Siegel (In re Law)
- Citation:
- Not for Publication
- Tag(s):
-
- Ruling:
- The panel affirmed the bankruptcy court's allowance and authorization to pay pro rata the final fees and costs of the estate's professionals over the objection of the Debtor in various stages of the bankruptcy case. The BAP held that the disposition of the Debtor's homestead exemption will be addressed at a proceeding separate from the decision concerning the approval of the fees and costs. The BAP held that the Debtor cannot use the appeal of the order approving and authorizing the payment of final fees and costs of the estate's professional to obtain payment of his homestead exemption claim because the issue of approving the fees and costs are distinct from the Debtor's entitlement to a homestead exemption claim. The relief he seeks (i.e., payment of his homestead claim) must be pursued before the bankruptcy court consistent with the U.S. Supreme Court's ruling.
- Procedural context:
- This appeal came after the Debtor won his appeal of the bankruptcy court's order to surcharge his claim of exemption.
- Facts:
- While the appeal of the order surcharging the Debtor's exemption claim was pending, the Trustee and his professionals sought approval and payment of their fees and costs incurred in litigating a fraudulent scheme relating to a lien on the Debtor's property. In 2009, the bankruptcy court approved the Trustee and his professionals' final fee applications and final report which the Debtor appealed without seeking a stay pending appeal. The case is administratively insolvent. In view of various other appeals taken by the Debtor concerning the estate's professionals' fees, an amended final report was filed and approved by the bankruptcy court in August 2013 which is now the subject of this appeal. In 2014, the U.S. Supreme Court held that the Debtor's exemption claim of $75,000 cannot be surcharged. In light of the Supreme Court's ruling, the Debtor, through his appeal of the order approving the amended final report, sought payment of his homestead exemtpion.
- Judge(s):
- Honorable Judges Randall Dunn, Ralph Kirscher and Laura Taylor.
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