In re Thomas
Opinion
Lead Opinion
Hamilton, J.
ORDER RE BANKRUPTCY APPEAL
The former attorney for debtors Beverly Ann and William Thomas, Bruce Zelis (“Zelis”), appeals the bankruptcy court’s December 7, 2011 ruling and subsequent December 20, 2012 order disqualifying him, denying attorney’s fees, and requiring him to disgorge the $15,000 retainer he received in conjunction with debtors’ case. For the reasons that follow, the court REVERSES AND REMANDS the matter to the bankruptcy court.
BACKGROUND
A. Factual and Procedural Background
On April 22, 2011, Zelis filed a chapter 11 bankruptcy petition on behalf of debtors. Prior to the filing, Zelis was referred to debtors by Willie E. Phillips, an attorney who was subject to disciplinary proceedings at the time and was subsequently on July 27, 2011 disbarred based on misconduct in bankruptcy cases including misappropriating client funds, failing to communicate with clients, and for charging and/or collecting illegal fees. Zelis and Phillips knew each other well, and had shared law offices in the past. On March 28, 2011, Zelis accompanied Phillips to a pre-filing meeting with debtors, at which time the debtors’ son paid $15,000 to Zelis as a retainer. Debtors subsequently…