Szanto v. Amborn (In re Szanto)
- Summarized by David Treacy , U.S. Bankruptcy Court, Eastern District of Kentucky
- 8 months 2 weeks ago
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- No. 22-60015 (9th Circuit, Apr 17,2024) Not Published
- Tag(s):
-
- Ruling:
- The U.S. Court of Appeals for the Ninth Circuit held a bankruptcy court did not abuse its discretion in awarding compensation to a law firm for work performed in a Singapore proceeding. The bankruptcy court had authorized the Chapter 7 Trustee to employ an attorney with the firm to prepare and file an expert report in the Singapore proceeding to recover funds that Debtor/Appellant transferred post-petition. The bankruptcy court did not err in finding the fee request to be reasonable under the applicable standard and the factors set forth in 11 U.S.C. § 330(a)(3)
- Procedural context:
- The Ninth Circuit reviewed the bankruptcy court's order awarding compensation to the law firm for an abuse of discretion. On appeal, Debtor (acting pro se) contended the action in Singapore was improper under Singaporean law, and that only the Singapore court had the authority to award compensation to the firm for its work in the Singapore proceeding. In affirming, the Ninth Circuit briefly addressed both arguments.
- Facts:
- In 2016, Debtor Peter Szanto filed a chapter 11 petition in the U.S. Bankruptcy Court for the District of Oregon. The court converted the case to one under chapter 7 and appointed a Trustee in 2017. Near the time of conversion, Debtor transferred "significant funds to banks in Singapore." The bankruptcy court held an evidentiary hearing, found Debtor in contempt, and ordered him to turn over the transferred funds and to grant Trustee access to the Singapore bank accounts. Debtor refused to comply. As a result, Trustee filed a Singapore proceeding to enforce the bankruptcy court's orders. Over Debtor's objection, Trustee received the court's approval to employ an attorney, David W. Criswell of Lane Powell, as an expert witness in the Singapore proceeding to answer questions the Singapore court posed about U.S. bankruptcy law. Criswell and his firm then filed an application in the bankruptcy court for compensation under 11 U.S.C. § 330 for legal services rendered to the Trustee. Over Debtor's objection, the court awarded compensation to the firm totaling $14,551.88. Debtor appealed the order to the U.S. Bankruptcy Appellate Panel for the Ninth Circuit, which affirmed. Debtor filed a second appeal to the Ninth Circuit.
- Judge(s):
- O'Scannlain, Fernandez, and Silverman
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