Tuesday, September 11, 2007

Don't Be Coy, David

[See Update below]

Here’s a bankruptcy story that deserves a wider audience—also a shout-out for David Yen of the Legal Assistance Foundation of Metropolitan Chicago, one of the most careful, serious, reflective lawyers I know. First, a newspaper clip (link):

Spokane Diocese Bankruptcy Lawyers Seek Closed Proceedings on Fees

Bankruptcy lawyers who have billed the Roman Catholic Diocese of Spokane are asking that proceedings on their fees be closed to the public, the Associated Press reported yesterday. At issue is more than $10 million in fees that the lawyers are seeking. The case stems from a $48 million settlement to resolve claims of sexual abuse by priests decades ago. In 10 days, lawyers for Bishop William Skylstad and for people who filed the abuse claims are scheduled to meet with a federal mediator in Reno, Nev.

Now David, writing at the Bankruptcy Law listserv at the University of Illinois Law School (link):

On what possible basis would this request be proper, other than, “we did a really good job stiffing the victims so we should get these fees but we don’t want them to know how much they got hosed”? I’m sure that there is a good reason that I just don’t have the legal acumen to figure out..

Don’t be coy, David. But nice catch.

Update: Following up on some offline chatter:

  • Yes, I believe that the lawyers for the Diocese may be in a position to argue that they preserved assets for innocent parishioners. Be happy to see that one carried out publicly.

  • You say you don't want your competitors to know how much you charge? Oh, give me a break. Your competitors know exactly what you charge. The public may not know, but I think they perfectly well ought to know.

  • You say there are "trade secrets" to protect? Hm. That may be a more complicated issue, although in an age when we have all gone trade-secret crazy, I'd be skeptical. Anyway, if it really matters, why not supplement your public application with a trade-secrets backgrounder?

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