New Cases - Week of January 22, 2007

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January 26, 2007
Case	Court	Holding

In re Watson (DBN Subscription Required)	Bankr. S.D. Tex.	In a section 727 action, there is a material issue of fact regarding the omission by an attorney/debtor of his interest in a referral fee and a partnership.
In re Enre, L.P. (DBN Subscription Required)	Bankr. S.D. Tex.	Under the law of the case doctrine, a secured statutory lien creditor who argues that it is entitled to post-petition attorney fees under section 506, and loses on appeal, has, on remand, waived the argument that it is entitled to attorney fees as an unsecured claim.
In re Global Home Products, LLC (DBN Subscription Required)	Bankr. DE	The determination of when an allowed 503(b)(9) claim should be paid is within the discretion of the bankruptcy court. The court should consider (1) prejudice to the debtors, (2) hardship to claimant, and (3) potential detriment to other creditors. Where immediate payment of an allowed administrative claim would hamper the debtor's continuing operations, and delayed payment would not imperil the survival of the claimant, the court can delay payment until after confirmation of a plan.

January 22, 2007
Case	Court	Holding

In re High Voltage Engineering Corp. (large pdf download)
(DBN Subscription Required)

D. MA

The debtor's post-confirmation trustee was not entitled to an order vacating previously-entered orders allowing compensation to estate professionals on the grounds that the professionals knew of, but failed to disclose, that the debtor lacked adequate funding to operate post-confirmation and would need additional reorganization.

The trustee stands in the debtor's shoes. Debtor's management knew of the financial facts, but did not disclose them. Thus, the debtor was in pari delicto and this operated as a defense in favor of the professionals. There is no 'innocent successor' exception available to a bankruptcy trustee in a case in which the defendant successfully could have mounted an in pari delicto defense against the debtor