Anger rises over bankruptcy fees; Congress and courts consider ways to control legal costs

Article Abstract:

Attorneys' fees in bankruptcy cases are earning the ire of debtors and creditors, and the interest of Congress. Several recent bankruptcies have garnered large legal fees, leaving unsecured creditors with little hope of repayment. Debtors, wary of being overcharged, are beginning to employ computerized cost-control systems and are asking counsel to bill by task. Congressional action may loom, as Senator Howard M. Metzenbaum plans a hearing on the issue in Mar 1992, and the American Bankruptcy Institute is drafting fee guidelines for submission to Congress.

Bankruptcy

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Getting victimized by the legal system

Article Abstract:

Houston's O'Quinn, Kerensky and McAninch represented residents of the low-income African-American community surrounding the Reichhold Chemical Co in Columbia, MS, after the plant explosion in 1977 and the firm's attorneys are being charged with taking unfair cuts of settlements and other ethical violations. Attorneys specializing in toxic tort cases say they are very expensive to litigate and while legal fees of one-third of the settlement are still the most common, O'Quinn's 40% or higher is not unheard of.

Toxic torts, Environmental justice

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Firms benefit from hot, but cyclical, business of IPOs

Article Abstract:

The market for the legal work on initial public offerings (IPOs) is subject to cyclical ups and downs. At present the market is highly competitive due to the stock market rally and investor demand for smaller, start-up businesses. Lawyers can represent either the issuer or the underwriter of IPOs. When companies put out bids for IPO work the resulting 'beauty contest' among competing firms is usually fierce since such bids are infrequent. The competition has forced a reduction in fees for IPO work.

Cases, Law firms, Corporation law, Going public (Securities), Initial public offerings

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