Carpenter, Babson & Fendler v. Condor Pictures, Inc.

Claims for attorneys’ fees were disallowed by the court below, and the claimants appealed pursuant to § 250 of the Chandler Act, Act of June 22, 1938, 11 U.S.C.A. § 650 .

On November 23, 1937, an involuntary petition for the adjudication of Condor Pictures, Inc., hereafter called the debtor, was filed. The debtor’s directors adopted a resolution employing Carpenter, Babson and Fendler, hereafter called the firm, as attorneys for it at a compensation to be fixed by the court. The firm filed for the debtor an answer to the petition and a motion to dismiss. Certain creditors then filed a petition for reorganization of the debtor, under former § 77B of the Bankruptcy Act, 11 U.S.C.A. § 207 . The firm on behalf of the debtor then filed an answer consenting to the petition for reorganization. The firm thereafter represented the debtor in the reorganization proceedings until April 15, 1938, when other attorneys were substituted for the firm.

Appellant Fendler had a claim against the debtor, and represented other creditors as well as stockholders holding in excess of ten per cent of the corporate stock. He initiated and formulated the plan of reorganization subsequently adopted,…