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In re Circle T Pipeline, Inc. (Case No. 11-70556) 04/27/2011

            The debtor filed an application to employ counsel, and the United States trustee objected, pointing to a number of provisions in the original attorney-client retainer agreement entered into by the debtor and counsel, which the United States trustee argued disqualified counsel from serving as debtor’s counsel under 11 U.S.C. § 327.  The Court considered the disinterestedness of counsel, counsel’s disclosure of all connections, the attorney fee retainer, an attorney’s ethical obligations, provisions of the employment agreement, and counsel’s prior representation of a creditor of the debtor.  The Court conditionally approved the employment application.

Date: 
Wednesday, April 27, 2011
Category: 
Chapter 11 Issues
Disinterestedness and Conflicts of Interest
Employment of Professionals
Chapter: 
11