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.

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2012 Kedikian & Kedikian

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