ORDERS:
ORDER DENYING MOTION FOR CONTINUANCE
This matter comes before me upon the filing of a Motion for Continuance by Petitioner First
American Home Care of South Carolina, Inc. (hereinafter referred to as "First American").
A teleconference was conducted on March 4, 1996, at 3:30 p.m. with counsel for each party in
the above matter participating.
First American and its subsidiaries filed for Chapter 11 bankruptcy in Georgia on
February 22, 1996. The bankruptcy trustee may prosecute or enter an appearance and defend any
pending action by the debtor before any tribunal or may employ an attorney to represent the
estate. Rule 11, Bankruptcy Rules (1994); 11 U.S.C. § 327 (1993). First American seeks a
continuance in the present matter until such time as Nexsen, Pruet, Jacobs & Pollard, L.L.P.
(hereinafter referred to as "Nexsen, Pruet") can be formally appointed by the bankruptcy trustee
to continue representation of First American, pursuant to 11 U.S.C. § 327(e) (1993). It is the
understanding of this Court that employment and approval of counsel to continue to represent a
debtor in a pending action is a pro forma ministerial act which may be completed with expedience,
if necessary.
Nexsen, Pruet has not shown, by affidavit or otherwise, that it is unlikely to be approved by the
trustee as special counsel in the present matter, or that its pre-petition fees for legal services
incurred as a result of representation of First American has created an interest adverse to the
debtor so as to disqualify Nexsen, Pruet as counsel in the present matter. On the contrary,
Nexsen, Pruet represents to this Court that it intends to apply for approval as special counsel and
does not anticipate objection by the trustee.
It is reasonable to expect Nexsen, Pruet, as soon as practicable, to file an application with the
First American trustee to continue to serve as counsel in this matter and be approved prior to
March 18, 1996, the date of the required submission of proposed orders. If appointment of
Nexsen, Pruet by the trustee occurs after March 18, 1996, counsel would still be entitled to fees
for services rendered to the estate, with appointment nunc pro tunc.
IT IS THEREFORE ORDERED that First American's Motion for Continuance is denied.
IT IS FURTHER ORDERED that Nexsen, Pruet immediately file an application with First
American's bankruptcy trustee to be approved as counsel in the present case and seek expedited
action on its application.
IT IS FURTHER ORDERED that Nexsen, Pruet file with this Court a copy of the application
filed, and upon approval or denial of that application by the bankruptcy trustee, file with this
Court documentation of that decision.
AND IT IS SO ORDERED
_______________________________________
STEPHEN P. BATES
ADMINISTRATIVE LAW JUDGE
March 5, 1996
Columbia, South Carolina |
