Critical Case Comment

By Henry E. Hildebrand, III, Chapter 13 Trustee, Nashville, TN

ASARCO, LLC v. Baker Botts LLP (In re ASARCO), 751 F.3d 291 (5th Cir. April 30, 2014) (Judge Jones). Fees incurred by a law firm representing a debtor, incurred in connection with defending a fee award, are not compensable as an administrative expense from the debtor’s bankruptcy estate.

Case Summary

ASARCO was a copper mining, smelting, and refining company that filed a Chapter 11 petition in 2005. Shortly before the filing, ASARCO’s parent corporation required it to transfer its controlling interest . . .

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