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By The Honorable William Houston Brown (Retired)
Disgorgement of fees for nondisclosure. The Tenth Circuit held that the “default sanction” for an attorney’s failure to satisfy disclosure obligation is full disgorgement of fees paid. While full disgorgement may not be required in particular circumstances, the “default sanction” principle required reversal and remand. The bankruptcy court, affirmed by the BAP, had ordered disgorgement of a small part of a large fee without providing adequate reasons. In re Stewart, ________F.3d________, 2020 WL 4726521 (10th Cir. Aug. 14, 2020).
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