US 6th Circuit Reverses Approval of Contingency Fee in Bankruptcy

The United States Court of Appeals for the Sixth Circuit reversed and remanded a ruling by the Circuit's Bankruptcy Appellate Panel (BAP) that determined the Northern District Bankruptcy Court of Ohio had "pre-approved" a contingency fee agreement. Nischwitz v. Miskovic, Docket No. 03-3303 (6th Cir. 2004).

Mr. Nischwitz represented the appellee as part of its bankruptcy and used a contingent fee agreement. The case was resolved and Nischwitz applied for fees from the court based on the agreement. The court awarded "reasonable fees" which were substantially less than the contingent fee request. The determination was appealed twice to the Sixth Circuit's Banktrupcy Appellate Panel before ending up at the Court of Appeals, which reversed the BAP and remanded for the panel to determine if the trial court abused its discretion in its award.