Par 5 Property Investments, LLC
Opinion
Trial Court Opinion
NOT FOR PUBLICATION 2 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF CALIFORNIA 5 In re: Case No. 21-22404-A-11 PAR 5 PROPERTY INVESTMENTS, LLC,
MF-2, UST-
8 Debtor. MEMORANDUM 10
Argued and submitted on October 3, 2022 at Sacramento, California Honorable Fredrick E. Clement, Bankruptcy Judge Presiding
Appearances: Iain A. Macdonald, Macdonald Fernandez LLP for Par 5 Property Investments, LLC; Loris 21 L. Bakken for Tracy Hope Davis, United States Trustee for Region 17
26 27 Chapter 11 debtors may employ lawyers at the expense of the estate, provided they do not hold adverse interests. Debtor hired a law firm to file a Subchapter V, Chapter 11 bankruptcy; a security retainer was paid and was deposited into the firm’s trust account. Post-petition and without court approval, the firm paid its own pre- petition fees from the trust account. That transaction is avoidable. Does the firm hold an interest adverse to the estate? I. FACTS A. Par 5…