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Chaffe McCall’s Fee Overturned in Chapter 7 Bankruptcy Appeal

Jan. 14, 2022, 11:09 PM

A Louisiana bankruptcy court must determine whether fees that a Chapter 7 trustee’s law firm charged were for legal or other services before approving those fees, the Fifth Circuit found.

The U.S. Bankruptcy Court for the Eastern District of Louisiana wrongly failed to clarify the “murky” line between legal and non-legal services when it ordered that Sharon Sylvester’s bankruptcy estate pay Chaffe McCall LLP the full $16,185 in fees that the firm charged, the U.S. Court of Appeals for the Fifth Circuit held Friday.

Sylvester argued that much of Chaffe McCall’s services were those that, under the bankruptcy code, are ...