Managing Partner Randall Miller was quoted in the article, “McGrane LLP must disgorge fees from Howrey bankruptcy, published by the Daily Journal, discussing how McGrane LLP had been ordered to disgorge more than $30,000 in fess it received for representing the bankruptcy’s official committee of unsecured creditors. McGrane LLP had been involved in the Howrey LLP bankruptcy for years when U.S. Bankruptcy Judge wrote that the firm” acted adversely to its former client, the committee, in derogation of the California Rules of Professional Responsibility.”
Mr. Miller says “the court cited several different occasions where McGrane was taking a position adverse to this former clients and the court’s analysis was really well done and very consistent with California state law.”
Additionally, the court added that the reduction in the firm’s compensation would still have been enforced even if they hadn’t acted adversely to its clients due to the issues with fee applications. “The judge mentioned there was work done for other clients, work done at the wrong rates, work that had done no benefit to the claims committee or work that was duplicative,” Miller said.”
U.S Bankruptcy Judge did not take additional steps to disqualify McGrane LLP due to McGrane’s pledge to never appear before the court in the Howrey case.