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LEGAL BRIEF 2 - what the court offered The Holding...

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LEGAL BRIEF OF CASE ____7.6_______ Case name, citation, and court: In re Big Rivers Electric Crop., 355 F. 3d 415 (6 th Cir. 2004) Summary of key facts: Big Rivers Electric Corp was in debt for more than 1.2 billion dollars. The corporation filed a petition to declare bankruptcy. J. Baxter Schilling was appointed as a neutral party for Big Rivers to resolve issues with creditors. Schilling stated to the creditors that he wanted an additional percentage fee based on what he attained. Schilling also stated without a deal he would not perform mediation. There was only one creditor that agreed and the others disputed the deal. Big Rivers and the other creditors requested that the court deny payment to Schilling. The Issue : Was this a case of ethics or legality? Should Schilling receive compensation for what has already been done? If so should he receive all the money he asked for in addition to
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Unformatted text preview: what the court offered? The Holding : Schilling should only be compensated for the amount the court originally set for his hours he already worked and immediately removed from Big Rivers business. He violated his duties as a disinterest party and business ethics code. He should be denied any additional fees he was trying to attain. Summary of your reasoning: This man was trying to collect an excessive amount of money unethically. The court already had a set amount for his work and he made secret side deals with the creditors to try and earn extra income. He was not looking into the best interest of Big River. At that point he wasn’t a neutral party. It became about him and how much money he was going to be able to receive from the creditors so he could make a profit....
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