07/20/2007 121 Objection Filed by U.S. Trustee (RE: related document(s)102 Application to Employ). (Williams, Rachelle) (Entered: 07/20/2007)
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Doc 121
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF KENTUCKY
LEXINGTON DIVISION
IN RE:
PLASTICON INTERNATIONAL, INC. CASE NO. 07-50934
DEBTOR CHAPTER 11
________________________________________________________________________
OBJECTION BY THE UNITED STATES TRUSTEE
TO APPLICATION OF THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS FOR ORDER AUTHORIZING THE EMPLOYMENT OF WISE DELCOTTO PLLC AS ATTORNEYS FOR THE COMMITTEE
________________________________________________________________________
Comes the U.S. Trustee, by and through the undersigned attorney, and hereby objects to the Application of the Official Committee of Unsecured Creditors for Order Authorizing the Employment of Wise Delcotto, PLLC as Attorneys for the Committee (the “UCC Employment Application”). In support of this Objection, the U.S. Trustee respectfully states as follows:
NOTICE
Please take Notice that this Objection will be heard by the Court on July 9, 2007 at 10:45 a.m. in the U.S. Bankruptcy Courtroom, 100 E. Vine St., Third Floor, Lexington, KY 40507.
OBJECTION
1. On June 26, 2007 the U.S. Trustee reconstituted the Unsecured Creditors’ Committee (the “UCC”) in the Plasticon International, Inc. case. The U.S. Trustee has since disbanded the UCC in the related case, Pro Mold, Inc.
2. In the UCC Employment Application, the UCC seeks the representation of Laura Day DelCotto, who has formerly represented International Plastics, Inc. in a chapter 11 bankruptcy, which is a company also owned by James Turek, the principal in Plasticon International, Inc. These companies appear to have substantially the same assets. The representation occurred when Mrs. DelCotto was a partner in Stoll, Keenon, & Park, LLP, prior to the formation of her current firm, Wise DelCotto, PLLC.
3. In the alternative, the UCC seeks the representation of Dean Langdon, also of the firm Wise DelCotto, with the provision that an “ethical wall” will be created to keep Mrs. DelCotto from participating in the case.
4. Kentucky Rule of Supreme Court, Rule 3.130(1.9) provides:
A lawyer who has formerly represented a client in a matter shall not thereafter:
(a) Represent another person in the same or a substantially related matter in which that person's interests are materially adverse to the interests of the former client unless the former client consents after consultation;
(b) Represent a person in the same or a substantially related matter in which a firm with which the lawyer formerly was associated had previously represented a client (1) whose interests are materially adverse to that person; and
(2) about whom the lawyer had acquired information protected by Rules 1.6 and 1.9(c) that is material to the matter; unless the former client consents after consultation.
(c) A lawyer who has formerly represented a client in a matter of whose present or former firm has formerly represented a client in a matter shall not thereafter:
(1) use information relating to the representation to the disadvantage of the former client except as Rule 1.6 or Rule 3.3 would permit or require with respect to a client or when the information has become generally known; or
(2) reveal information relating to the representation except as Rule 1.6 or Rule 3.3 would permit or require with respect to a client.
5. The U.S. Trustee requests that a waiver be obtained by the Debtor for Wise Delcotto to represent the UCC in compliance with the Supreme Court Rules.
6. The U.S. Trustee also requests that the “ethical wall” be created, and that Mrs. Delcotto be prohibited from representing the committee or working on the case with Mr. Langdon, in order to ensure that no information is revealed about the debtor pertaining to the prior representation in violation of the Supreme Court Rules.
WHEREFORE, for the above reasons, the U.S. Trustee requests that the Application Authorizing the Employment of Wise Delcotto to represent the UCC only be approved after these Objections have been resolved.
Respectfully submitted,
OFFICE OF THE U.S. TRUSTEE
RICHARD CLIPPARD, REGION 8
_______/s/Rachelle Williams_____
BY: RACHELLE WILLIAMS
TRIAL ATTORNEY
100 E. Vine Street, Suite 500
Lexington, KY 40507
(859)233-2822
CERTIFICATE OF SERVICE
This is to certify that a copy of the foregoing Objection was served electronically upon Robert Brown, attorney for the Debtor; all members of the Unsecured Creditors’ Committee; Dean Langdon and Laura Day DelCotto; and all parties requesting electronic notice on this 20th day of July, 2007.
/s/ Rachelle Williams
Rachelle Williams |
