McCormick v. Starion Financial

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On remand to the Bankruptcy Appellate Panel, debtors challenged the bankruptcy court's order granting in part and denying in part Starion's motion to compel payment of fees under the confirmed plan of reorganizations, and granting in part and denying in part debtors' motion to disallow attorneys' fees and costs claimed by Starion. The panel affirmed the bankruptcy court's judgment and held that its prior opinion was not clearly erroneous nor did it work a manifest injustice in this case. Therefore, it is law of the case and will not be reopened. The panel also held that the relatively short delay in submitting the requests for attorneys' fees did not prejudice debtors and was not a material breach of the plan that should prohibit Starion's right to collect its fees and costs under the plan. Finally, the bankruptcy court did not abuse its discretion by reducing the fees instead of denying all fees. View "McCormick v. Starion Financial" on Justia Law