In Re Tighe Mercantile, Inc.

MEMORANDUM DECISION

I

INTRODUCTION

Pursuant to this Court’s order, Court-appointed examiner, Victor Ramsauer, (“Examiner”) employed the law firm of Hill & Baskin (“Applicant”), in connection with his investigation of the Chapter 11 debtors, Tighe Mercantile, Inc. (“TMI”) and Thomas Fellenz Tighe (“Tighe”). Applicant has filed its motion for allowance of fees and costs. TMI and Tighe have objected to this fee application on the ground that this Court was without authority to authorize the Examiner to employ counsel.

II

FACTUAL BACKGROUND

On March 15, 1985, Tighe filed a petition for relief under Chapter 11 of the Bankruptcy Code. On June 28, 1985, TMI, the corporation of which Tighe was president and 25% shareholder, similarly commenced a Chapter 11 case.

Prior to the commencement of either case, the Bank of America (“Bank”) filed a complaint in state court against Tighe and TMI to recover on notes each had executed in favor of the Bank. On April 15, 1985, the Bank, Tighe (acting in the capacity of TMI’s president) and TMI stipulated that TMI would not transfer or encumber TMI’s corporate property, other than in the ordinary course of business, and that TMI would provide the…