In Re McKinney Ranch Associates

ORDER APPROVING EMPLOYMENT OF COUNSEL, AND DENYING APPOINTMENT NUNC PRO TUNC

I. INTRODUCTION

This Chapter 11 bankruptcy case was filed by the debtor in possession McKinney Ranch Associates (“McKinney”), a California limited partnership, on January 4,1985. On the same day McKinney retained attorney Marc Zegar (“Applicant”) to represent it in this case, and paid him a retainer of $2,500. The debtor, however, has made no application to the Court until now to employ Applicant as counsel, even though such application is required by Bankruptcy Code § 327, 11 U.S.C. § 327 , and Bankruptcy Rule 2014(a).

Notwithstanding the failure to obtain appointment as counsel, Applicant applied for and was awarded interim fees in the amount of $29,537.50 and costs in the amount of $429.40 by Judge Richard Med-nick of this Court on October 22, 1985, and has received $10,000 (in addition to the original retainer), pursuant to this award. Applicant’s failure to obtain appointment by the Court was not disclosed in the application for interim compensation, and apparently was not brought to the attention of the Court at that time. In consequence, the Court has issued an order to show cause why the…