Compensation for bankruptcy professionals employed in bankruptcy cases is governed by Section 330 of the Bankruptcy Code. Section 330(a)(1) of the code provides, in pertinent part, that “the court may award to … a professional person employed under Section 327 or 1103—(A) reasonable compensation for actual, necessary services rendered.” Professionals whose employment is approved by the bankruptcy court consequently must file fee applications, to be reviewed and approved by the court for work performed in the bankruptcy case.
The issue of whether Section 330(a)(1) entitles estate professionals to fees incurred in connection with defending fee applications was recently before the U.S. Supreme Court in Baker Botts v. Asarco LLC, 576 U. S. ____ (2015). In an opinion delivered by Justice Clarence Thomas on June 15, the Supreme Court in a 6-3 decision affirmed the judgment of the U.S. Court of Appeals for the Fifth Circuit and held that estate professionals are not so entitled.
Facts
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