In re Shupbach Investments, L.L.C. (Razo v Rose Hill Bank)

Razo appealed the bankruptcy appellate panel’s decision denying his application for attorney fees for the period before he was approved by the bankruptcy court and after the confirmation of the dissolution plan. The panel affirmed. It held that under circuit precedent, which was consistent with the majority approach, fees for work prior to approval is only available under extraordinary circumstances and Razo’s forgetting file his approval paperwork on time was not an extraordinary circumstance. As the post confirmation fee issue, the panela held that Investments loss its status as debtor in possession at the confirmation as all property was transferred out of its name and a trustee was appointed to administer the final liquidation and Investments thus lacked power to authorize fees after confirmation.