MATTER OF WIREDYNE, INC.

No. 92-1518.

3 F.3d 1125 (1993)

In the Matter of WIREDYNE, INC., Debtor. Appeal of Tamalou WILLIAMS, Trustee, Appellant.

United States Court of Appeals, Seventh Circuit.

Decided August 30, 1993.


Attorney(s) appearing for the Case

Terry Sharp, argued, Marcus H. Herbert, Mt. Vernon, IL, for appellant.

Peter D. Kerth, argued, Thomas M. Newmark, Gallop, Johnson & Neuman, St. Louis, MO, Francis E. Pennington, III, Gerald P. Greiman, Green, Hoffmann & Dankenbring, St. Louis, MO, for appellees.

Before CUDAHY and ROVNER, Circuit Judges, and ESCHBACH, Senior Circuit Judge.


CUDAHY, Circuit Judge.

This action for disgorgement of attorneys' fees arose from a bankruptcy proceeding involving the debtor corporation, Wiredyne, Inc. The bankruptcy Trustee alleges that the debtor's law firm had a conflict of interest when it represented both Wiredyne and its insiders in two lawsuits prior to the order for relief in bankruptcy. The issue in this appeal is whether a conflict of interest prior to the order for relief mandates the disgorgement of...

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