Fees for defending fee requests
Baker Botts L.L.P. v. ASARCO
In brief
The firms cannot receive court-awarded fees under §330(a)(1) for defending their fee applications.
- Where it stands
- Decided
Decided 6-3 · June 15, 2015 · Opinion by Justice Thomas
- What it’s about
- Baker Botts and another law firm sought fees for defending their fee requests in ASARCO’s bankruptcy. The Supreme Court ruled that bankruptcy courts cannot award bankruptcy professionals fees for defending fee applications and agreed with the Fifth Circuit.
- Who it affects
- Bankruptcy professionals hired under §327(a) cannot receive court-awarded fees for defending their fee applications.
Summary: written with AI from the case record.
What it's about
Baker Botts and another law firm sought payment for time spent defending their fee requests during ASARCO LLC’s bankruptcy.
The dispute was about whether the Bankruptcy Code makes an exception to the usual rule that each side pays its own lawyer.
Question presented
Does the Bankruptcy Code allow a firm to be awarded damages for defending a challenge to a fee request?
What the Court decided
Holding
Section §330(a)(1) does not permit bankruptcy courts to award fees to §327(a) professionals for defending fee applications. 751 F. 3d 291, affirmed.
- Result
- Affirmed
The vote
From the opinions
“In my view, when a bankruptcy court determines “reasonable compensation,” it may take into account the expenses that a professional has incurred in defending his or her application for fees.”
What's next
Bankruptcy courts must apply this rule when deciding fee requests by professionals hired under §327(a).
Documents
Opinions
Docket activity
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AI analysis generated: Case Briefing
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More questions
- What did Justice Breyer say about fee-defense costs?
- He said courts could consider those costs when setting reasonable compensation for the firms’ underlying bankruptcy work.
Sources
Primary materials plus reporting. Best-effort analysis: this explainer relies on a mix of primary materials and trusted secondary sources. Official filings and opinions remain authoritative.