Recent cases of importance to you and your practice.

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The Supreme Court has held that Bankruptcy Code Section 330(a)(1) does not allow a Chapter 7 debtor's attorney to be compensated from the estate unless the attorney is employed by the Trustee with the approval of the Bankruptcy Court. Lamie v. United States Trustee, 2000 WL 110846 (U.S. 2004). This decision conclusively ends the controversy over the 1994 amendments to that Section, and puts Chapter 7 debtors' counsel on notice that, if not retained pursuant to Section 327, they are on their own with respect to fees.

In last month's issue, we discussed the fact that bankruptcy lawyers may think they do not have to worry about the rules of evidence ' and we then went on to prove otherwise. The Federal Rules of Evidence apply to most issues that arise in bankruptcy cases, according to Rule 9017 of the Federal rules of Bankruptcy Procedure. We discussed two of the four useful subjects under these rules: attorney-client privilege, and attorney work-product doctrine. Part Two of this article, below, discusses settlement offers and affidavits.

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28 U.S.C. ' 157(d) contains the standards for mandatory or permissive withdrawal of the reference from the Bankruptcy Court to the District Court, which…

In the restructuring world certain constants exist: The Bankruptcy Code (Code) has not dramatically changed since 1978, a Chapter 7 corporate debtor cannot receive a discharge, and exemptions are defined to the penny. But be wary -- there are unknown pitfalls out there. State governments, to appear responsive to local issues caused by distressed businesses, have increasingly enacted laws that spring "secret liens" or other penalties on debtors. Although bankruptcy practitioners may instinctively deride such laws as subordinate to the federal Code, recent federal opinions disagree.

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A popular managerial concept for over two decades, outsourcing now holds even greater appeal as large numbers of lesser-paid, skilled workers become accessible through improved telecommunications and workflow management techniques. As convincingly depicted in Lisa R. Smith's accompanying article, the direct cost advantages of outsourcing are stronger than ever, and at least some outsourcers are providing high quality service even for security-sensitive functions previously kept in-house. During the current jobless recovery, however, outsourcing is rapidly turning into a political hot button. Its globalized variants, "job exporting" and "offshoring," are already red hot. Although some political discussants appear self-interested and even demagogic, it's clear that widespread outsourcing is indeed associated with serious societal problems ' and probably not just in the short term.

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Outsourcing is top of the news in many industries, and the legal industry is no exception. Recent news reports and editorials comment exhaustively on many aspects of outsourcing, and for any of those aspects you can find someone who will opine convincingly at either end of the spectrum. Many large firms have taken the step of locating a portion of their back office outside a principal office, including, as was described in the January interview with Ralph Baxter, Orrick's Global Operations Center in West Virginia. These arrangements, while generally a great move for the firms, should not be confused with outsourcing because the services are still being provided within the firm. However, they may certainly be a viable alternative to outsourcing.

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The Employee Benefit Security Administration of the Department of Labor (DOL) has recently announced a more liberal view toward charging tax-qualified…