United States Ninth Circuit

Creditors who receive compensation under Bankruptcy Code section 503(b)(4) should also be compensated for costs incurred in litigating a fee award, so long as the services meet the section 503(b)(4) requirements and the case "exemplifies a 'set of circumstances' where litigation was 'necessary'." In an appeal arising after creditors petitioned a bankruptcy court to recover legal fees incurred in connection with filing an involuntary Chapter 7 petition against the debtor, a bankruptcy appellate panel (BAP) decision reversing the denial of such fees but denying fees for the appeal itself is reversed as the BAP erred in summarily denying creditors compensation for services arising out of the successful appeal.

Appellate Information

• Argued 06/06/2007
• Decided 11/01/2007
• Published 11/01/2007

Judges

• Before:  CYNTHIA HOLCOMB HALL and CONSUELO M. CALLAHAN, Circuit Judges, and LYLE E. STROM, Senior District Judge.

Court

• United States Ninth Circuit

Counsel

• For Appellant:
  
• James E. Adler, Law Offices of David B. Bloom, Los Angeles, CA, for the appellants.


• For Appellees:
  
• Eric P. Israel and Frank X. Ruggier, Danning, Gill, Diamond & Kollitz, Los Angeles, CA, for the appellee.