Two years after the bankruptcy court approved retention of debtor's counsel in Boy Scouts over the objection of one of debtor's insurers, the U.S. Court of Appeals for the Third Circuit affirmed. In re Boy Scouts of Am., No. 21-2035, 2022 U.S. App. LEXIS 13926 (3d Cir. May 24, 2022). Although the Court of Appeals determined that the insurer had standing to pursue an appeal seeking disqualification, it denied the insurer's request to disqualify counsel for alleged violations of the Rules of Professional Conduct. The court concluded that the potential disgorgement of counsel's fees prevented mootness and reasoned that prudential bankruptcy appellate standing requirements are less stringent in the context of retention orders. Indeed, the court characterized the retention of counsel as integral to the "integrity of the bankruptcy court proceeding," and recognized that "absent immediate appeals, meaningful review of potentially serious ethical issues might never occur." Id. at *9. The insurer appellant urged the Court of Appeals to adopt a rule that would require bankruptcy courts to consider applicable Rules of Professional Conduct in retention of counsel. The Third Circuit declined to do so, concluding that Bankruptcy Code §327 provides the correct test for evaluating whether debtor's counsel has a disabling conflict. Its reasoning underscored that the primary concern should be counsel's ability to effectively represent the debtor in its bankruptcy case.