[CLBS] Fwd: Bk Listserve question

[Ryan F]

Doesn't I.C. § 3-205 give you a statutory lien? If so, what basis does a
trustee have to avoid it? Your firm is a secured creditor up to the amount
owed under the fee agreement.

https://legislature.idaho.gov/idstat/Title3/T3CH2SECT3-205.htm

Ryan Farnsworth
Avery Law

On Fri, Sep 16, 2016 at 10:46 AM, Robert Maynes <mayneslaw at hotmail.com>
wrote:

>
> Begin forwarded message:
>
> From: Ryan Dustin <dustin at thwlaw.com<mailto:dustin at thwlaw.com>>
> Subject: Bk Listserve question
> Date: September 16, 2016 at 10:01:33 AM MDT
> To: Robert Maynes <mayneslaw at hotmail.com<mailto:mayneslaw at hotmail.com>>
>
> [cid:image001.gif at 01D20FF6.E4584FD0]
> Rob,
>
> I can’t seem to get this to post to the bk listserve. Since you seem to be
> the go-to guy around here, would you mind putting this up for me?
>
> Law firm obtained a judgment on behalf of two clients in an underlying
> case. Under the applicable statute, the law firm is entitled to an award of
> attorneys fees. After entry of the judgment, but before the judge issued an
> order on the attorneys fees, one of the two clients filed bankruptcy. The
> fee agreement between the law firm and the two clients on the underlying
> case states that the firm is entitled to the greater of a percentage of the
> total award, or the fees actually awarded by the court. The fees actually
> awarded by the court exceed the agreed upon percentage of the total.
>
> The firm’s position vis-a-vis the bankruptcy is that the law firm is
> entitled to the entire amount awarded as attorneys fees pursuant to the fee
> agreement. In other words, the attorneys fees attributable to the client
> who filed bankruptcy are either not part of the bankruptcy estate or those
> attorneys fees pass through the bankruptcy estate unaffected because of the
> fee agreement between the law firm and both clients. Of the course, the
> clients are entitled to the entire amount of the judgment minus costs, per
> the fee agreement in the underlying case.
>
> The client’s bankruptcy trustee believes that the fees attributable to
> that client’s portion of the underlying case are part of the bankruptcy
> estate along with the judgment and the firm would get its pro rata share
> rather than the entire amount of the attorneys fee. Essentially law firm
> and trustee disagree over the treatment in bankruptcy of the fee agreement
> in the underlying case. Does the agreement give the law firm the right to
> the entire fee award because that is not money that belongs to the client
> or would pass through the client’s hands without the bankruptcy; or are
> those fees included in the bankruptcy estate because the law firm would not
> have earned those fees without representing the client? Neither the firm
> nor the trustee is able to point to any compelling authority. Any
> assistance sorting this out would be greatly appreciated.
>
>
> Ryan S. Dustin
> 2635 Channing Way
> Idaho Falls, ID  83404
> (208) 522-1230 (tel)
> (208) 522-1277 (fax)
> www.thwlaw.com<http://www.thwlaw.com/>
>
> [cid:image003.png at 01D21001.4D6E9470]
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