Duarte Bankruptcy Attorney

Bankruptcy | Case Law | Substantial Contribution

SUBSTANTIAL CONTRIBUTION

In re Wind N’ Wave, 509 F.3d 938 (9th Cir. 2007)

“. . .[C]reditors who receive compensation under 503(b)(4) should also be compensated for

costs incurred in litigating a fee award, so long as the services meet the § 503(b)(4) requirements

and the case “exemplifies a ‘set of circumstances’ where litigation was ‘necessary’”. . . .”

In re Cellular 101, Inc., 377 F.3d 1092 (9th Cir. 2004)

Creditors made substantial contribution by proposing only plan presented to the bankruptcy

court, which paid 100% of claims and a portion of the equity. Court declines to decide whether

creditor’s motive is relevant, noting the split in the circuits.