IN RE ENGEL

No. 96-5256.

124 F.3d 567 (1997)

In re: William ENGEL, Debtor. FERRARA & HANTMAN; Robert J. Hantman, Appellants, v. Jesus Antonio ALVAREZ; Theodore J. Liscinski, Jr., Trustee; United States Trustee.

United States Court of Appeals, Third Circuit.

Decided September 3, 1997.


Attorney(s) appearing for the Case

Michael R. Perle (argued), Michael R. Perle, P.C., New York City.

Robert J. Hantman, Hantman & Associates, New York City, for Appellants.

David A. Nicolette (argued), Jeanette A. Odynski, Nicolette & Perkins, Oradell, NJ, for Appellee, Jesus Antonio Alvarez, as Administrator ad Prosequendum and as Administrator of the Estate of Xiomara Alvarez, also known as Xiomara Engel, Deceased.

Theodore J. Liscinski, Jr., Lanfrit, Liscinski & Rosenwasser, P.C., Somerset, NJ, for Appellee, Trustee, Theodore J. Liscinski.


OPINION OF THE COURT

GARTH, Circuit Judge:

The question we must answer on this appeal is whether an appointment of special counsel under § 327(e) of the Bankruptcy Code requires that compensation for special counsel's services be paid from estate funds where no benefit to the bankruptcy estate has been achieved. We hold that § 330 of the Bankruptcy Code requires that services rendered by special counsel benefit the estate before payment from estate...

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