Blissful Dairy, LLC

Summary

This memorandum of decision from the United States Bankruptcy Court for the District of Vermont addresses the improper retention and payment of legal fees to special counsel in a Chapter 12 bankruptcy case. The court found that the debtor and its counsel failed to seek prior court approval for the attorney's employment and compensation, violating the Bankruptcy Code and the duty of candor. Consequently, the court ordered the disgorgement of $11,950 held in the attorney's client trust account to be paid to the debtor's primary secured creditor.