In re Paris

ORDER AND STATEMENT OF DECISION:

[1] DENYING FINAL APPLICATION FOR COMPENSATION FOR LEGAL SERVICES RENDERED BY SPECIAL LITIGATION COUNSEL, BRADLEY H. SPEAR; AND

[2] REQUIRING BRADLEY H. SPEAR TO DISGORGE SUMS PREVIOUSLY RECEIVED

Bradley H. Spear (“Spear”), former contingency counsel to the chapter 7 trustee, contends that he is entitled to, as compensation for services rendered to the trustee, a portion of a litigation settlement negotiated by the trustee after Spear stipulated to his own suspension from law practice by the California State Bar, and was replaced with substitute counsel by the trustee. Notwithstanding his suspension from practice, Spear contends that under California law he holds an attorneys’ lien against the settlement proceeds and is entitled to be compensated from those funds. Spear’s request is opposed by the chapter 7 trustee, the Office of the United States Trustee, and the contingency counsel that replaced him after his suspension.

The Court concludes below that Spear’s stipulated suspension was not the sort of “justifiable cause” under California law *814 that would permit a contingency attorney law to cease representation of a client but nevertheless…