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Cahn Seeks Court Approval of New Retention Agreement Terms for Boies Schiller
Sunday, November 01 2009 @ 03:50 AM EST

SCO's Chapter 11 Trustee Edward Cahn seeks to retain Boies Schiller for the SCO litigation, but at what he seems to think is a reduced rate. He says it's the new retention agreement, one the firm and SCO agreed to in August, prior to his watch, but now he is asking the court to approve it.

We learned that Boies Schiller had offered to drop approximately $515,000 of pre-petition "fees" at the July 27th hearing about whether to convert to Chapter 7, during Darl McBride's testimony. According to McBride, it meant a greater *upside* for Boies Schiller if they won. According to Cahn, it's the opposite. Which is true?

We'll break it down, but first, here are the new filings:

10/30/2009 - 941 - Motion to Authorize / Motion of the Chapter 11 Trustee for Entry of an Order Authorizing Modification of Retention Order for Boies, Schiller and Flexner LLP Nunc Pro Tunc to August 6, 2009 Filed by Edward N. Cahn, Chapter 11 Trustee for The SCO Group, Inc., et al.. Hearing scheduled for 11/20/2009 at 02:00 PM at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom #3, Wilmington, Delaware. Objections due by 11/13/2009. (Attachments: # 1 Notice # 2 Exhibit A # 3 Exhibit B # 4 Exhibit C # 5 Exhibit D) (Fatell, Bonnie) (Entered: 10/30/2009)

Exhibit A is the October 31, 2004 retention agreement between SCO and Boies Schiller. Exhibit B is a new Supplemental Declaration of Stuart Singer. Exhibit C is the proposed new agreement. And Exhibit D is Cahn's proposed order rubber stamping the new fee structure.

Note that BSF itself altered the October 31, 2004 agreement when it asked to be retained as special litigation counsel. The Stuart Singer Declaration [PDF] in support stated that any contingency fees paid should be paid only to BSF, not divided between the Original Three Firms, since it was the only one of the three original firms still providing services, and that it would be paid the full 33% minus any hourly fees already paid "at any time to the Three Original Firms". The three original firms were BSF, Kevin McBride and Berger Singerman. Singer said Kevin McBride still held a 7.5% interest.

Now, there will be no such reduction for hourly fees already paid. Considering the enormous amounts already paid to those firms, that is a huge benefit to Boies, not the estate, by my reckoning and by Darl's. I can't show you the entire transcript of that July hearing until November 5th, but here's the part I'm referring to, on page 208, McBride on the stand:

Q Do you have an agreement with Boies Schiller with regard to their pre-petitioned fees of $515,000?

A Yes.

Q What is that?

A The agreement there is that that pre-petition debt goes away, and in return for that, we gave them some more upside and a possible recovery in the litigation.

That is how he described it, as "some more upside", and a possible recovery in the litigation. I would understand that to mean BSF had a possible recovery chance under the new arrangement and probably not so much under the old. SCO's lawyer, Arthur Spector, described it later in the hearing as an offer in which BSF would give up the $515,000 in return for a contingency benefit:

The BSF deal is contingent and it's not a done deal. It's an off[er] basically by Boies Schiller Flexner. It hasn't been executed. There's no signed agreements or anything like that. It's just a statement saying if we get past this and we go forward, they will do -- they'll restructure going forward their contingency fee in return for giving up their pre-petition claim and some other consideration which --
I don't know what he means by "some other consideration", but he described the new deal as BSF giving up the pre-petition billing in return for a restructured contingency fee, implying a better one.

Mr. Cahn describes it differently. In his filing, he says the agreement provides a *benefit* to the SCO estates, not to Boies Schiller. I think he's looking at the reduction in the percentages in the contigency scale, not the real-life results of no longer subtracting for amounts already paid. If you look on page 4 of the motion, you'll see how Cahn compares the new and the old terms in a chart:

AgreementRevised Agreement
Litigation Recoveries up to $350 million in aggregate yields BSF a share of a contingency payment of 33% of the amount of such recoveries, less payments received for hourly fees to the Original Three Firms (as defined therein), plus Litigation Recoveries exceeding the aggregate sum of $100 million yields BSF a contingency payment of 15% of the amount of such recoveries, plus
Litigation Recoveries exceeding the aggregate sum of $350 million and up to $700 million yields BSF a share of a contingency payment of 25% of the amount of such recoveries, less payments made to firms other than the Original Three Firms, plus Litigation Recoveries exceeding the aggregate sum of $100 million and up to $500 million yields BSF a contingency payment of 25% of the amount of such recoveries, plus
Litigation Recoveries exceeding the aggregate sum of $700 million yields BSF a share of a contingency payment of 20% of the amount of such recoveries.Litigation Recoveries exceeding the aggregate sum of $500 million yields BSF no contingency payment on the amount in excess of $500 million.

That chart doesn't seem complete, if you compare it with the terms as set forth in the new retention letter, because the chart makes it seem like there is no contingency fee in any recovery less than $100 million. But the letter agreement says that BSF will get a contingency fee on any Litigation Recoveries up to $100 million as well. Here's how it's phrased in the letter to Darl that he signed off on:

1. BSF shall be entitled to a contingency fee on any Litigation Recovery as defined in the Agreement, without any deduction for legal fees previously paid under the Agreement.

2. For each Litigation Recovery, until the amount of the aggregate Litigation Recoveries exceeds the sum of $100 million, the contingency payment shall be 15% of the amount of the Litigation Recovery.

3. For each Litigation Recovery, after the amount of the aggregate Litigation Recoveries exceeds the sum of $100 million up to $500 million, the contingency payment shall be 25% of the amount of the Litigation Recovery.

4. There shall be no contingency interest on Litigation Recoveries after the aggregate Litigation Recoveries reach the sum of $500 million.

The letter says it is confirming "the modification of the existing engagement ...currently set forth in the letter agreement of October 31, 2004 ("Agreement"), and as approved by the Bankruptcy Court in approving our retention as special counsel on behalf of the Debtor". But it wasn't approved without modifications, which I don't see mentioned anywhere. So, let's look at those modifications, just for the record.

When Boies Schiller first applied to be special litigation counsel, right after SCO filed for bankruptcy, it included this wording in the application, an alteration of the pre-petition agreement:

7. BSF has consented to continue to provide such services to the Debtors on the terms set forth in the Engagement Agreement (with one modification noted below) with respect to the matters covered thereunder, and on the same basis it had represented Debtor pre-petition with respect to the SuSE Arbitration and Gray Litigation. For example, under the contingency fee provisions of the Engagement Agreement, Debtors would pay the Law Firms 33% of any recovery up to $350 million "less all hourly fees paid at any time to the Three Original Firms". BSF has consented to be engaged to continue providing professional services in these matters on the terms set forth in the Engagement Agreement, except as the sole remaining of the three Law Firms continuing to provide servers, it requests that it be entitled to the full contingency fee payable to the Law Firms (except for such amount, approximately 7.5%, to which Kevin McBride currently holds interest).

8. Prior to the Petition Date, BSF paid fees to Hatch, James, and Dodge (Utah local counsel) and Dorsey & Whitney (with respect to intellectual property assistance only), and will continue to be responsible for such fees, for work authorized to be conducted in connection with the SCO Litigation. Upon disclosure and any necessary court approval, BSF may seek to share part of its contingency interest with the other firms that it is required to compensate under the terms of the Engagement Agreement.

However, Dorsey & Whitney waived any contingency fees at the November 16, 2007 bankruptcy hearing.

The US Trustee's Office in November of 2007 objected to the Boies retention terms. And it listed this as one of its suggested modifications:

9. The fees payable to BSF (including fees payable to a Litigation Recovery or a Transaction Recovery) need to be subject to review by this Court under the standard set forth in 11 U.S.C. § 330. More specifically, the compensation terms of the October 31, 2004 engagement letter should not be "pre-approved" under the standard identified in 11 U.S.C.§ 328(a).
The eventual order [PDF] by the bankruptcy court judge explicitly says that "the Application is granted as modified herein". One modification was as follows:
ORDERED that pursuant to section 327(e) of the Bankruptcy Code, the Debtors are authorized to employ and retain BSF as special counsel, effective nunc pro tunc to the Petition Date, on the terms set forth in the Application and the Declaration; provided, however that any compensation payable to BSF would be subject to review under 11 U.S.C. Section 328 with respect to (i) any Litigation Recoveries and/or (ii) any Transaction Recoveries where International Business Machines ("IBM") or Novell, Inc.("Novell") is a direct party to the Transaction; provided further, that compensation payable to BSF for (i) Transaction Recoveries where entities other than IBM and/or Novell are direct parties to the Transaction and (ii) the hourly rate services referenced in paragraph 14 of the Application shall be subject to review under 11 U.S.C. Section 330; and it is further

ORDERED that, subject to the foregoing, BSF shall file applications and be compensated in accordance with sections 330 and 331 of the Bankruptcy Code, the Bankruptcy Rules, the Local Rules, and any such other procedures as may be fixed by order of this Court; and it is further

ORDERED that, with the exception of BSF, this Order does not authorize either the Debtors or BSF to employ and/or compensate professionals referenced in the Application and/or the Engagement Agreement; notwithstanding BSF's obligations under the Engagement Agreement to pay certain fees and expenses, the Debtors are obligated to separately retain such professionals before they are compensated.

I'm having trouble matching that last paragraph with the new Supplemental Declaration of Stuart Singer. Weren't they supposed to file an application for their bills to be paid *before* SCO paid them? Isn't that the process, so others can object? But he says SCO paid them in July $48,647.37, mainly for expenses from the Novell trial, but without submitting a fee application to the bankruptcy court. Oops. Singer says they'll get right on that.

And didn't the order say BSF was not to pay professionals referenced in the Application and/or the Engagement Agreement, that SCO was to separately retain them and pay them themselves? But Singer says BSF paid Dorsey & Whitney and Hatch and Dodge after SCO filed for bankruptcy. It paid Dorsey $301,437.84, $296,206 for pre-petition services) and it paid Hatch $243,080.75 ($197,220 for pre-petition services). I don't understand that at all, given the order. The thing about bankruptcy, though, is that so much seems to happen in the dark. It's not like regular civil litigation in that respect. So maybe all the i's were dotted, and I just don't know it.

Notice too the distinction between Litigation Recoveries and Transaction Recoveries? You may wish to make a note about that, since the change is only to Litigation Recoveries, as best as I can determine. So if the company were sold, for example, the Transaction contingency fees are unchanged. Reading the terms of the October 31, 2004 agreement, particularly paragraph d) on page 3, I'd say that if AutoZone is paying SCO anything as part of the proposed settlement, BSF would get its cut, so that's one way to figure out if they did. The phrasing says the contingency payments cover any settlement of claims, by SCO or by its shareholders, calculating both monetary or non-monetary benefits.

Since the new deal states, as described by Cahn on page 3, that BSF gets its contingency fees "without any deduction for legal fees previously paid" I think McBride had it right, frankly. They've been paid millions already, and if they were to win, they'd get more.

How that works out in real life is like this: let's say they'd been paid, oh, $40 million or so. Under the old agreement, if they won $40 million in court, they'd get none of that award, because of the deduction for hourly fees already paid. Under the new agreement, in contrast, they'd get a total of $53,320,000, the $40 million they were already paid *plus* a percentage of the winnings in court too, according to the sliding scale for contingency fees, or by my math another $13,320,000. How is that a benefit to the estate?

By the old arrangement, BSF had to win the lottery, so to speak, to get past the amounts already paid, before they'd see a dime. Now, if they win even one dime, they get part of it, so the new arrangement guarantees them something, no matter how small the recovery, if any. BSF is not a goody two-shoes about getting paid. I think it's made the offer because it thinks it will benefit. They apparently used to think they'd hit the lottery. Now they are structuring to get at least something.

And so to my reckoning, I think they will, in that although the contingency percentages are lower, 33% of nothing is nothing whereas 15% of anything is still something.

Then there are the expenses that SCO is responsible for. As of December 1, 2005, the Company had paid BSF $26,000,000, according to SCO's 10k for the fiscal year ended October 31, 2005. But that's just fees. That's all paid up through the appeals in the IBM litigation. But SCO also has to pay expenses. They allocated, according to that filing, $5,000,000 for that. As of October 31, 2005, $2,875,000 remained in the escrow account. We know from that same 10K that in that year, from October 2004 until the 10K filing, SCO paid out $212,500 in expenses to Boies Schiller and $300,000 to Kevin McBride as well. That's one year's worth. In the 10K for the fiscal year ended October 31, 2006, SCO added another $5,000,000 to that expenses escrow account. And in that 10K, it says:

Since October 31, 2004, we have spent a total of $9,954,000 for expert, consulting and other costs and fees as agreed to in the Engagement Agreement with our legal counsel in the SCO Litigation.

Cost of revenue from the SCOsource business was $19,743,000 for the year ended October 31, 2004, $12,847,000 for the year ended October 31, 2005 and $12,307,000 for the year ended October 31, 2006. Cost of revenue was primarily attributable to legal fees and other costs and expenses incurred in connection with the SCO Litigation. During the year ended October 31, 2006, we made the final payment to the law firms of Boies, Schiller & Flexner LLP, Berger Singerman, and Kevin McBride (the “Law Firms”) for legal fees, but are continuing to pay for the costs of experts, consultants and other costs of the SCO Litigation. In addition to the expenses incurred above, we must also pay one or more contingency fees upon any amount we or our stockholders may receive as a result of a settlement, judgment, or a sale of our company.

You can see how significant such expenses can be. And continuing to press the litigation against IBM and Novell and Red Hat will mean more expenses.

And as for waiving the pre-petition $515,000, in return for more of an upside, as McBride put it, that's easy to explain: they'll probably never see that money from SCO anyway. SCO is broke. And they are talking about selling "non-core assets", meaning I think everything but the litigation, so unless there is a litigation victory, BSF is looking at being left holding the bag. So all that happened, as I see it, is that Boies Schiller sees a hope, if they can pull off a miracle, of getting paid at least something. This isn't, I don't believe, a firm that does you favors. Someone has to pay for the fun in Jamaica and the $100,000 associate year-end bonuses.

In short, although their fees were capped long ago, in reality, they're not, because the expenses continue, for one thing, and not if they prevail, because the contingency is not based on any reduction of fees already paid.

By the way, did you notice that the terms clearly indicate what Boies Schiller thinks is the top amount SCO can even hope for on its best day? Lawyers don't work for nothing. So when a lawyer says he won't ask for anything if he wins more than $500 million for you, he means he is sure he can't get that much for you. So I take this as a sign of what BSF thinks the case is worth, on its best day even with stars in their eyes.

On the day SCO filed for Chapter 11 protection, it listed a debt [PDF] to BSF of $287,256.39, which Singer indicated was owed for expenses. Fees were paid in full for the original SCO litigations, but then along came the arbitration in Switzerland and the Wayne Gray matter. On those, SCO has to pay hourlies and expenses. So where is the evidence that SCO owed $515,000 in pre-petition "fees"? I may have dropped a stitch somewhere, but how did $287,256.39 become $515,000? I'm guessing it has to be the Swiss arbitration and/or the Gray litigation, but if so, why wasn't it listed in full the day SCO filed for bankruptcy protection? Maybe they didn't have the bills in hand yet, but was the first day filing ever corrected?

When IBM's lawyer, Richard Levin, was summing up at the July 27th bankruptcy hearing on whether or not there should be a conversion or a trustee appointed, he included this:

Your Honor, this case, as has been noted, is about the obsessive pursuit of litigation and perhaps the obsessive pursuit of the mobility applications, although that's a little less clear. But we have here a Chapter 11 debtor who is supposed to be a fiduciary for the estate and for the creditors. And what do we have?

McBride's testimony in his deposition that he will not consider selling the litigation as part of any sale, but worse we have incorrect financial statements to this court, which were not corrected until called to their attention. We have incorrect testimony not only on the board meeting, which the record will show was incorrect on the June 15th testimony, but also the reasons for the termination of the sale negotiations both with York and with SNCP, the first iteration of that.

Mr. McBride testified very clearly at the June 15 hearing that both of those deals fell apart because of the uncertainty related to the litigation. We heard a very different story today. I don't know which one to believe, but a fiduciary shouldn't be telling this court different stories.

We have a CEO of a business that has 62 employees, and he's not sure who his officers are or what officer positions they hold. We have questionable payments. There was debate about them. They attempted to justify them. But at the most -- at the least -- excuse me, Your Honor -- they were questionable.

We have a mischaracterization of board meetings. We have a public reporting company that has a false website identifying its officers, according to Mr. McBride's testimony. And we have Mr. McBride's testimony that they reached -- I'm not sure it was Mr. McBride, but we have other testimony that they reached an agreement to revise the fee agreement with Boies, Schiller & Flexner in this case without this court's approval. And that is subject to this court's approval under Section 327.

Your Honor, this does not amount to a Chapter 11 debtor that should remain in possession. These things all speak of breach of fiduciary duty, failure to follow the orders of this court, failure to comply with Chapter 11 procedures. We can debate whether that's grossly mismanagement.

In fact, the court decided to appoint a neutral Chapter 11 trustee, and he did so. But has the obsession with litigation stopped?

So was McBride the only problem?


  


Cahn Seeks Court Approval of New Retention Agreement Terms for Boies Schiller | 278 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
Off Topic
Authored by: IMANAL_TOO on Sunday, November 01 2009 @ 04:03 AM EST
OT = Off Topic

---
______
IMANAL


.

[ Reply to This | # ]

Obsession?
Authored by: Anonymous on Sunday, November 01 2009 @ 05:39 AM EST
Well, its not suprising the obsession with litigation has continued ... the
trustee is, by all accounts, a guy who has spent his life litigating.

Give him a company to run that does say, software and litigation, well, he
doesn't know much about software .. but hey, this litigation is right up his
street!

Given that, its hardly suprising hes focussed on that side of the
"business".

[ Reply to This | # ]

Corrections Here as Needed
Authored by: entre on Sunday, November 01 2009 @ 06:20 AM EST
For everyone

[ Reply to This | # ]

News Picks go here
Authored by: darksepulcher on Sunday, November 01 2009 @ 07:13 AM EST
When posting, please mention which News Pick you are discussing so we can follow
along.

---
Had I but time--As this fell Sergeant, Death
Is strict in his arrest--O, I could tell you--
But let it be.
(Hamlet, Act V Scene 2)

[ Reply to This | # ]

Cahn Seeks Court Approval of New Retention Agreement Terms for Boies Schiller
Authored by: JamesK on Sunday, November 01 2009 @ 08:57 AM EST
"According to McBride, it meant a greater *upside* for Boies Schiller if
they won. According to Cahn, it's the opposite. Which is true?"

As if we didn't already know the answer to that. ;-)


---
IANALAIDPOOTV

(I am not a lawyer and I don't play one on TV)

[ Reply to This | # ]

    More or less for BSF...
    Authored by: TemporalBeing on Sunday, November 01 2009 @ 09:49 AM EST
    I think McBride sees it as an up-side since it lowers the recovery rates at which BSF gets a larger percentage of the litigation awards.

    However, Cahn probably sees it as a downner for BSF and an up for the Estate because he doesn't see as much money at the end of the rainbow as McBride sees. Remember, McBride sees Billions in the "pot of gold at the end of the rainbow", Cahn is probably more realistic.

    [ Reply to This | # ]

    Cahn Seeks Court Approval of New Retention Agreement Terms for Boies Schiller
    Authored by: Anonymous on Sunday, November 01 2009 @ 10:55 AM EST

    We learned that Boies Schiller had offered to drop approximately $515,000 of pre-petition "fees" at the July 27th hearing about whether to convert to Chapter 7, during Darl McBride's testimony. According to McBride, it meant a greater *upside* for Boies Schiller if they won. According to Cahn, it's the opposite.

    That's because Darl and Cahn have very different ideas about what SCO is likely to recover from the litigation. Under the proposed revision, BSF gets 15% of litigation recoveries less than $100 M, with no offset for hourly fees paid. It also releases its pre-petition claim for $515 K. That's 15% of about $3.4 M. Under the previous agreement, BSF wouldn't have taken a cut of any recovery less than about $30 M. So if the litigation recovery is less than $3.4 M, the estate comes out ahead. That's what Cahn expects.

    I don't know what he means by "some other consideration", but he described the new deal as BSF giving up the pre-petition billing in return for a restructured contingency fee, implying a better one.

    The "other consideration" is the restructured contingency fee: hourly fees paid are no longer deducted from the contingency payments.

    Weren't they supposed to file an application for their bills to be paid *before* SCO paid them? Isn't that the process, so others can object? But he says SCO paid them in July $48,647.37, mainly for expenses from the Novell trial, but without submitting a fee application to the bankruptcy court. Oops. Singer says they'll get right on that.

    The retention order requires BSF to file interim applications in advance for payment of contingency fees. It's not really clear that they're required to apply for reimbursement of expenses. Apparently Singer didn't think so, because as you correctly point out, no application was filed and filing one now doesn't put BSF in compliance with a requirement to file in advance -- if there was one. But when Cahn took over, he must have made a strong suggestion that the application be filed anyway.

    And didn't the order say BSF was not to pay professionals referenced in the Application and/or the Engagement Agreement, that SCO was to separately retain them and pay them themselves? But Singer says BSF paid Dorsey & Whitney and Hatch and Dodge after SCO filed for bankruptcy.

    SCO applied for [110] and was granted [220] an order to retain Dorsey. I don't see a retention order for Hatch, so that does look like a mistake on BSF's part.

    I'd say that if AutoZone is paying SCO anything as part of the proposed settlement, BSF would get its cut, so that's one way to figure out if they did.

    That's right. BSF is giving up its pre-petition claim, which was probably never going to paid anyway, in exchange for a cut of the AutoZone settlement, which is much smaller but probably will be paid.

    [ Reply to This | # ]

    My experience with a bankruptcy trustee
    Authored by: Anonymous on Sunday, November 01 2009 @ 11:08 AM EST
    One of my company's suppliers once went bankrupt. My company owned the bankrupt
    company some money for merchandise purchased and the bankrupt company owned my
    company some money for merchandise returned. It netted to somewhere around
    zero.

    A bankruptcy trustee was appointed and took the position that the money that my
    company owed to the bankrupt company should be paid immediately but the money
    that the bankrupt company owed to us should become part of the general debt.

    I learned about the right of offset from school and thought that it was just
    plain wrong. Our attorney told us that the issue was in bankruptcy court and
    there are no rules. The bankruptcy judge could do whatever he wanted, period.

    The bankruptcy trustee understood this well and pressured us to settle with
    them. The judge also pressured us to settle as well. It was madness. We were
    the only honest party in the whole process. When we tried to explain that the
    whole thing was just wrong, the judge and trustee just smiled at us for being so
    naive.

    The bankruptcy even went so far as to hire a consultant who testified that he
    had had conversations with me, personally, conversations that never took place!
    I was shocked when I read the transcripts of his testimony. It was totally made
    up! Again, the bankruptcy trustee just smiled with an evil smile when we
    brought up the issue.

    Unfortunately, the legal system often uses the adversarial process to justify
    immoral actions. I believe that the same thing is happening here, in this case.
    Judge Cahn justifies to himself pursuing a shake down scheme because he thinks
    that it his duty to represent the people that he is replacing. He has become a
    more competent and intelligent Daryl.

    The big picture is that the legal system is not about justice. It is just a
    different kind of gangsterism, with smiley faces pasted over the barrel of a
    gun.

    [ Reply to This | # ]

    Cahn Seeks Court Approval of New Retention Agreement Terms for Boies Schiller
    Authored by: tknarr on Sunday, November 01 2009 @ 11:13 AM EST

    I get the feeling Mr. Cahn's side of the negotiations went something along the lines of "Give up your claims for fees and help clean up the mess you made, and I'll give you a cut of any recovery (if by some miracle somebody actually ends up having to pay SCO anything) and I won't go after you for having led SCO down this garden path.". I suspect the threat to BSF isn't so much in the Novell case as over in the IBM case, and that right now BSF probably considers this a good deal (especially since Mr. Cahn's probably willing to hand over any heads IBM wants on platters to entice IBM to give up their counterclaims).

    [ Reply to This | # ]

    Cahn's Strategy
    Authored by: rsteinmetz70112 on Sunday, November 01 2009 @ 11:58 AM EST
    I don't know what Cahn's Strategy is but this move seems to me to be merely
    cleaning up loose ends left by Darl.

    If Cahn settles the remaining cases with little or no additional cash payment to
    SCO. Getting rid of the debt to BSF actually saves money if the settlements are
    less that something like $3.5 million. One approach might be "selling"
    the Unix Licensing business back to Novell as settlement of the debt and
    cleaning up the SCO License to Unix technology.

    He may be attempting to make the litigation go away and then sell the OpenServer
    Business as the "core asset".

    ---
    Rsteinmetz - IANAL therefore my opinions are illegal.

    "I could be wrong now, but I don't think so."
    Randy Newman - The Title Theme from Monk

    [ Reply to This | # ]

    So was McBride the only problem?
    Authored by: IMANAL_TOO on Sunday, November 01 2009 @ 12:26 PM EST
    PJ asked "So was McBride the only problem?"

    Hmmm. If things proceed a few more years we may hear voices claiming that the US Govt has taken over McBride's rôle in this farce.



    ---
    ______
    IMANAL


    .

    [ Reply to This | # ]

    So was McBride the only problem?
    Authored by: Anonymous on Sunday, November 01 2009 @ 01:50 PM EST
    Possible McBride was but the agent of the problem, so removal of McBride does
    not remove the problem. Possible all we have seen is a change of agent, an
    upgrade.

    [ Reply to This | # ]

    Cahn Seeks Court Approval of New Retention Agreement Terms for Boies Schiller
    Authored by: Anonymous on Sunday, November 01 2009 @ 06:08 PM EST
    OK, I'm dense and I'll readily admit I am prejudiced against the US civil legal system (see here for background on that), but I still could use some clarification; as someone appointed by the federal court, in an ongoing legal case in the American legal system, is it legitimate ethical behavior by said rep to allow false testimony, false allegations, misrepresentaion of facts and substance, in the previously mentioned ongoing legal case? meaning, can Cahn sit on his backside and allow grossly false claims and misrepresentations to be made to the federal court? Is it his responsibility to know the factual truth behind statements that are made on behalf of the company/estate, or can he turn a blind eye to any intentional lies or "smoke" by the legal lawdogs, stick his fingers in his ears and lahdeeedahh? Willful blindness and all that? What exactly ARE any responsibilities he might have about being honest in the ongoing legal case? I've been told attorneys are allowed to lie in defense of their clients' interests, but I don't think, in this case, cahn is acting as an attorney. That is why he was retained a firm. So can he lie or allow a lie to be filed or plead?

    [ Reply to This | # ]

    Disappearing Benefit to Debtor
    Authored by: Anonymous on Monday, November 02 2009 @ 01:20 AM EST
    If an order converting the Debtors' chapter 11 cases is not entered, BSF will drop its claim as a prepetition creditor (an amount of approximately $515,000);

    Am I correct in assuming that if/when SCO is finally liquidated, the Revised Agreement vanishes and the BSF prepetition claim re-appears?

    cpeterson, WINAL

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    Lawyers should be prohibited form profiting
    Authored by: Anonymous on Monday, November 02 2009 @ 03:44 AM EST
    ya know they should get paid to do a job and not allowed stock options , and or
    other "incentives" it leads to a more corruptible
    WIN at any cost scenario that may contribute to things like this bankruptcy

    [ Reply to This | # ]

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