Client-Focused Management of Expectations for Legal Fees in Large Chapter 11 Cases

Abstract

This article discusses the dynamics that create a disincentive for most parties to monitor fees in large chapter 11 cases and will then provide suggestions to inside counsel whose organizations find themselves involved in those cases — as the debtor, as a member of the creditors' committee, or as a secured creditor whose collateral is being tapped for the carve-out to pay the professionals' fees.

Keywords: Chapter 11, Legal Fees, Disincentives, Social Science, Legal Profession, Delivery of Legal Services, Legal Technology, General Counsel, Inside Counsel

JEL Classification: k00, k1, k10, k19, k2, k22, k23, k29, k39, k49, l29, l89, m20, m29