In re Sundance Self Storage-El Dorado LP
Opinion
Lead Opinion
Bardwil, J.
MEMORANDUM DECISION
On July 12, 2012, this court issued an order to show cause directing the debtor’s attorney, C. Anthony Hughes (“Counsel”), 1 to show cause, if any he had, why the court should not reconsider the amount approved under an earlier fee award in his favor and why he should not be sanctioned for violating Fed. R. Bankr.P. 9011(b) (the “OSC”). 2 Counsel has now filed four declarations addressing the court’s concerns raised in the OSC and an additional concern that came to light following the issuance of the OSC. The OSC hearing was concluded on October 10, 2012.
For the following reasons, the court will issue an order disallowing all compensation *618 previously approved and requiring Counsel to disgorge to the estate of the debtor, Sundance Self Storage-El Dorado LP (“Sundance”), all monies Counsel received as compensation for services and reimbursement of expenses in and in connection with this case and Sundance’s earlier case, discussed below.
I. BACKGROUND
This case presents a graphic illustration of the policies underlying the rules that professionals employed in chapter 11 cases must make full and complete disclosure of their connections with the debtor and…