Currently before the Supreme Court is Baker Botts, L.L.P. v. ASARCO, L.L.C. ,in which the Court will determine whether bankruptcy judges have discretion to award compensation for the defense of a fee application under 11 U.S.C. § 330(a). The decision in Baker Botts will likely resolve a circuit split and make clear whether a defense of a fee application is necessary to the administration of the case and, therefore, compensable. This decision could impact how practitioners approach and oppose fee applications.
Relevant Bankruptcy Code Provision -
The provision at issue is Section 330(a)(1), which provides that bankruptcy judges are given discretion to award fees based on “(A) reasonable compensation for actual, necessary services rendered by the trustee, examiner, ombudsman, professional person, or attorney and by any paraprofessional person employed by any such person; and (B) reimbursement for actual, necessary expenses.”
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