Baker Botts L.L.P. v. ASARCO LLC
United States Supreme Court
135 S. Ct. 2158 (2015)
Two law firms (plaintiffs) hired under Bankruptcy Code § 327(a) represented ASARCO (defendant) during its Chapter 11 bankruptcy and won a large judgment for the estate through fraudulent-transfer litigation against ASARCO's parent. When ASARCO, now controlled by that parent, objected to the firms' fee applications under § 330(a), the firms successfully defended the fees before the bankruptcy court and then sought additional compensation for the time spent defending the fee application itself. The district court allowed those fee-defense fees, but the court of appeals reversed, and the Supreme Court granted certiorari.
Whether Section 330(a) of the Bankruptcy Code permits a law firm to recover fees for time spent litigating in defense of its own fee application.