Biglaw

Baker Botts LLP Responsible for Paying Their Legal Fees
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Baker Botts LLP

Summary: Under bankruptcy code, Baker Botts can only collect fees that are a direct form of labor for ASARCO, charging them the legal fees used against them is not a form of service for them.

A Monday Supreme Court ruling denied Baker Botts LLP, a top law firm, the right for payment for the legal actions they took to be paid by a client. Baker Botts represented the Tucson, Arizona mining and refining company, ASARCO LLC, during their bankruptcy case in 2009. When Baker Botts and another law firm presented ASARCO with a $117 million dollar bill, the company refused to pay that amount.

  
What
Where


The firm then raked in another $5 million in defending their right to be paid. The U.S. Court of Appeals in the Fifth Circuit stated that the law firm is not entitled to be paid for any legal fees incurred when seeking payment under the bankruptcy code. Under this code a company only has to pay for labor performed for the client. Legal fees for seeking payment are not considered as an act of labor for the company.

Clarence Thomas

Justice Clarence Thomas

Justice Clarence Thomas stated that they will uphold the American Rule where each side is responsible for paying their own attorney fees. ASARCO’s attorney, Jeff Oldham of Bracewell & Giuliani, was pleased with the court’s decision saying, “ASARCO has argued from the beginning that the Bankruptcy Code’s plain text does not authorize Baker Botts’ attempt to get paid from estate funds for its purely self-interested work litigating over its underlying fee requests.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Jeffrey Oldham

Jeff Oldham

Source: http://thehill.com/regulation/court-battles/244980-supreme-court-denies-law-firm-payment-for-defending-right-to-be-paid



Photo: Ingworldnews.com

Thomas profile: law.net

Oldham profile: bracewellguiliani.com



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

General Municipal Law Attorney with land use experience

USA-CA-Oakland

Oakland office of our client seeks general municipal law attorney with experience advising public ag...

Apply Now

Mid-level Restructuring Attorney with bankruptcy experience

USA-DC-Washington

Washington, D.C. office of our client seeks mid-level restructuring attorney with 4-6 years of exper...

Apply Now

Senior Land Use Attorney with experience

USA-CA-San Francisco

San Francisco office of our client seeks senior land use attorney with 7+ years of experience. The c...

Apply Now

Attorney with 3-5 years of civil litigation experience

USA-IN-Merrillville

Merrillville office of our client seeks attorney with preferably 3-5 years of civil litigation exper...

Apply Now

RELEVANT JOBS

Civil & Business Litigation / Transactional Attorney

USA-CA-Clovis

Law firm with primary emphasis in Business & Civil Litigation and transactional work, seeks confiden...

Apply now

LITIGATION ATTORNEY

USA-CA-Emeryville

Boutique East Bay litigation defense firm is seeking a junior to mid-level attorney. Candidates for ...

Apply now

Family Law Paralegal

USA-NJ-Parsippany

The right person for this job will grasp basic and complex divorce and family law issues, have stron...

Apply now

Products Liability & Mass Tort Litigation Associate

USA-GA-Atlanta

The candidate must have 1- 5 years of civil litigation experience, preferably with some background i...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top