Schwertner v. Kirk (In re Kirk) (Jan. 28, 2015)
Dischargeability of attorney’s fees, Recovery of attorney’s fees under federal law
An unpaid subcontractor brought an adversary proceeding against the Debtor, a contractor, to except debt from discharge. The contractor stipulated to its liability on the debt and its nondischargeability but the subcontractor sought attorney’s fees for prosecuting the nondischargeability action. The Court found that attorney’s fees in prosecuting a dischargeability action can be recovered and declared nondischargeable if the fees are (1) allowed by statute or contract and (2) arise from or are on account of the conduct that resulted in a nondischargeable debt.
WL Cite: Schwertner Backhoe Services, Inc. v. Kirk (In re Kirk), 525 B.R. 325 (Bankr. W.D. Tex. 2015).