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principles enunciated in Cooter & Gell v. Hartmarx Corp., [496
U.S. 384 (1990),] preclude us from awarding appellate fees and
expenses under the bad faith exception to the American rule”.
Having determined to proceed under section 7430, and with a nod
to Izen’s previous objection, we ordered petitioners to submit
net worth affidavits for all real parties in interest with
respect to their appellate fee requests; namely, “those
individuals who have made payments to Porter & Hedges or Michael
Minns, P.L.C.--through contributions to the Atlas Legal Defense
Fund or otherwise--or are liable to Porter & Hedges or Michael
Minns, P.L.C. for the unpaid portion of the requested fees and
expenses”. See Rule 231(b)(4); see also infra Part I.A.
Meanwhile, in an order dated September 8, 2005, which we
incorporate by reference and reproduce as Appendix B, we
similarly rejected the Youngs’ reliance on section 6673 and
ordered them to submit net worth affidavits for all real parties
in interest.12
On November 7, 2005, the PH petitioners filed a motion for
reconsideration of our September 1 order, as well as a separate
12 That order also pertains to a motion for appellate fees
and expenses filed in this Court in July 2005 by the
participating nontest case petitioners represented by Jones. We
subsequently informed the parties that we would handle that
motion and the Youngs’ appellate fee motion (filed by Izen)
separately from petitioners’ appellate fee requests. To complete
the story regarding appellate fee requests, the Court understands
that Sticht and respondent are working on a comprehensive
stipulation and submission regarding requests for fees by
participating nontest case petitioners represented by Sticht.
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