In Re Park-Helena Corp., Debtor. Neben & Starrett, Inc. v. Chartwell Financial Corporation
Opinion
Opinion
Wiggins, J.
OVERVIEW
The bankruptcy court denied all fees and costs requested by the law firm of Neben & Starrett, which represents the debtor, Park-Helena Corporation. The bankruptcy court found that Neben & Starrett had violated various bankruptcy statutes and court rules by willfully failing to disclose (1) the source of a $150,000 retainer paid to the firm, and (2) the firm’s connections to a related party. We have jurisdiction pursuant to 28 U.S.C. § 158 (d), and we affirm.
FACTS
On July 16, 1992, William Starrett (a partner in Neben & Starrett) received from Gerald Meyer (president of Park-Helena) a $150,000 retainer. The retainer was in contemplation of Park-Helena’s chapter 11 bankruptcy filing. Meyer wrote a $150,000 check out of his personal account, and the check was accepted by Starrett as a retainer.
Neben & Starrett completed an Application for Employment, pursuant to Fed. R.Bankr.P. 2014, in which the firm stated that it received a retainer from Park-Helena and did not have connections with Park-Helena’s creditors. The bankruptcy court approved Neben & Starrett’s employment as Park-Helena’s counsel on August 11, 1992.