Bankruptcy: A Lesson in Conflicts and Sex with Clients© – Part 3 of 4

By Mark D. Yochum, Professor of Law, Duquesne University School of Law

The standard for review of disqualification is abuse of discretion, whether a reasonable person could agree with the court’s decision.  Cause, under 11 U.S.C. §324(a) includes conflicts.  Proof of cause (and the burden is on those seeking disqualification) is not satisfied by mere conclusory allegations; there must be specific facts.  In re Regan, 403 B.R. 614, 623 (B.A.P. 8th Cir. 2009).  The District Court here concluded that sufficient factual basis was established to show conflict in investigation of potential . . .

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