Heller Bankruptcy Ruling Puts 'Meat on the Bones' of Emerging Theory
January 30, 2014
“Heller Bankruptcy Ruling Puts 'Meat on the Bones' of Emerging Theory”
Farella Braun + Martel Bankruptcy Partner Gary Kaplan comments on a U.S. Bankruptcy Court ruling in the ongoing case of a defunct law firm.
According to Mr. Kaplan in the Daily Journal article, Montali strengthened and built upon a prior decision from the Coudert Brothers LLP bankruptcy case in New York, which in a 2012 ruling introduced the concept of using a hypothetical firm as the measuring stick for reasonable overhead and attorney compensation. Montali's ruling put "meat on the bones" of that ruling by accepting the New York court's view and providing additional detail on how it should be applied.
“This is one of the first times we're seeing where a court is going item by item and listing particular expenses and saying why they should or should not be included,” said Kaplan.