In Re Complaint Of

ORDER

Complainant, principal owner of a financial group, alleges that a bankruptcy judge refused to appoint the group as an advisor in two bankruptcy cases due to personal animus. Complainant claims that the animus arises out of a previous case where the financial group was appointed as an advisor to the bankruptcy estate. In that case, the judge entered multiple orders approving the financial group’s appointment. Each of the orders included a monthly cap on the fees the financial group was entitled to bill, but the group substantially exceeded these caps almost every month it was retained. When it came time for the judge to approve the group’s final fee application, he denied any fees in excess of the capped limits. Then, in two subsequent cases, the judge cited the group’s failure to comply with these orders as his reason for denying its appointment as advisor. The judge has made it clear that he will not appoint the group in future cases.

The decision whether to approve the appointment of a professional to deliver services to a bankruptcy estate is a merits ruling that is not normally second-guessed in a judicial misconduct proceeding. See Commentary to Judicial-Conduct Rule…