Lamie v. United States Trustee, 540 U.S. 526, 7 (2004)

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532

LAMIE v. UNITED STATES TRUSTEE

Opinion of the Court

while representing ESI with the approval of the court under § 327. See In re Equipment Services, Inc., 290 F. 3d 739, 742 (CA4 2002) (case below). See also 11 U. S. C. § 1107(a) (authorizing debtor-in-possession to exercise the statutory rights and powers of an estate trustee, including to retain counsel under § 327). Three months into the Chapter 11 reorganization, the United States Trustee (Government) filed a motion to convert the action into a Chapter 7 liquidation proceeding. The court granted the Government's motion and appointed an estate trustee pursuant to § 701, 11 U. S. C. § 701(a). This terminated ESI's status as debtor-in-possession and so terminated petitioner's service under § 327 as an attorney for the debtor-in-possession. Yet petitioner continued to provide legal services to ESI, the debtor, even though he did not have the trustee's authorization to do so. He prepared reports detailing debts incurred and property acquired since the initial filing; he amended asset schedules; and he appeared at a hearing on an adversary complaint.

In due course petitioner filed an application seeking fees under § 330(a)(1) for the time he spent on ESI's behalf after the Chapter 7 conversion. The Government objected to the application. It argued that § 330(a)(1) makes no provision for the estate to compensate an attorney not authorized under § 327. The court agreed and denied the fees. In re Equipment Services, Inc., 253 B. R. 724 (Bkrtcy. Ct. WD Va. 2000). (Petitioner was paid fees for the services he provided to ESI before conversion of the proceeding to Chapter 7 and when ESI was the debtor-in-possession. The parties do not contest those fees.)

Petitioner unsuccessfully sought reversal of the Bankruptcy Court's determination, first from the District Court, see In re Equipment Services, Inc., 260 B. R. 273 (WD Va. 2001), then from the Court of Appeals, see 290 F. 3d 739 (CA4 2002). Both courts concluded the plain language of § 330(a)(1) controlled and that attorneys who provide services to debtors in Chapter 7 proceedings must be hired by

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