October Term 2006 · Docket 05-1429
Can a bankruptcy court award attorney fees to an unsecured creditor?
The dispute centers on whether federal bankruptcy law permits fee awards to unsecured creditors.
Verified source milestones
- — An official oral-argument transcript was verified.
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Travelers claims the lower court rule exists outside the Bankruptcy Code.
Pacific Gas and Electric asserts state law provides for these fees.
Justice Kennedy asked about standard promissory notes in bankruptcy.
Justice Roberts asked if lawyers routinely recover fees in insolvency.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 17-27 — Transcript, file page 10, lines 17-27
- Official Supreme Court Transcript — file page 18, lines 41-47 — Transcript, file page 18, lines 41-47
- Official Supreme Court Transcript — file page 25, lines 17-27 — Transcript, file page 25, lines 17-27
- Official Supreme Court Transcript — file page 3, lines 19-17 — Transcript, file page 3, lines 19-17
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 30, lines 43-7 — Transcript, file page 30, lines 43-7
- Official Supreme Court Transcript — file page 4, lines 19-37 — Transcript, file page 4, lines 19-37
- Official Supreme Court Transcript — file page 5, lines 9-13 — Transcript, file page 5, lines 9-13
- Official Supreme Court Transcript — file page 57, lines 37-25 — Transcript, file page 57, lines 37-25
- Official Supreme Court Transcript — file page 58, lines 27-29 — Transcript, file page 58, lines 27-29
- Official Supreme Court Transcript — file page 6, lines 13-21 — Transcript, file page 6, lines 13-21
- Official Supreme Court Transcript — file page 6, lines 3-9 — Transcript, file page 6, lines 3-9
- Official Supreme Court Transcript — file page 6, lines 41-45 — Transcript, file page 6, lines 41-45
- Official Supreme Court Transcript — file page 7, lines 11-15 — Transcript, file page 7, lines 11-15
- Official Supreme Court Transcript — file page 7, lines 23-31 — Transcript, file page 7, lines 23-31
- Official Supreme Court Transcript — file page 7, lines 41-5 — Transcript, file page 7, lines 41-5
- Official Supreme Court Transcript — file page 8, lines 35-49 — Transcript, file page 8, lines 35-49
- Official Supreme Court Transcript — file page 9, lines 39-45 — Transcript, file page 9, lines 39-45
- Official Supreme Court Transcript — file page 9, lines 49-5 — Transcript, file page 9, lines 49-5
A citizen's guide to the whole case
What this case is about
Travelers seeks to overturn a Ninth Circuit rule. Pacific Gas and Electric defends the lower court decision.
Official sources for this section
- Official Supreme Court Transcript — file page 18, lines 41-47 — Transcript, file page 18, lines 41-47
- Official Supreme Court Transcript — file page 25, lines 17-27 — Transcript, file page 25, lines 17-27
- Official Supreme Court Transcript — file page 3, lines 19-17 — Transcript, file page 3, lines 19-17
- Official Supreme Court Transcript — file page 30, lines 43-7 — Transcript, file page 30, lines 43-7
- Official Supreme Court Transcript — file page 57, lines 37-25 — Transcript, file page 57, lines 37-25
How the case got here
The Supreme Court heard oral argument in this case on January 16, 2007.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 58, lines 27-29 — Transcript, file page 58, lines 27-29
What each side wants
Travelers wants the Court to reject the Ninth Circuit rule.
Pacific Gas and Electric wants the Court to keep the fee award.
Official sources for this section
- Official Supreme Court Transcript — file page 18, lines 41-47 — Transcript, file page 18, lines 41-47
- Official Supreme Court Transcript — file page 25, lines 17-27 — Transcript, file page 25, lines 17-27
- Official Supreme Court Transcript — file page 3, lines 19-17 — Transcript, file page 3, lines 19-17
- Official Supreme Court Transcript — file page 30, lines 43-7 — Transcript, file page 30, lines 43-7
- Official Supreme Court Transcript — file page 57, lines 37-25 — Transcript, file page 57, lines 37-25
What each side says
Travelers argues the rule creates unwarranted federal common law.
Pacific Gas and Electric argues state law standards apply to unsecured claims.
Official sources for this section
- Official Supreme Court Transcript — file page 18, lines 41-47 — Transcript, file page 18, lines 41-47
- Official Supreme Court Transcript — file page 25, lines 17-27 — Transcript, file page 25, lines 17-27
- Official Supreme Court Transcript — file page 3, lines 19-17 — Transcript, file page 3, lines 19-17
- Official Supreme Court Transcript — file page 30, lines 43-7 — Transcript, file page 30, lines 43-7
- Official Supreme Court Transcript — file page 57, lines 37-25 — Transcript, file page 57, lines 37-25
What the justices asked
Justice Stevens asked if fees are normally recovered in such cases.
Justice Souter asked about the remoteness of the contingency here.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 17-27 — Transcript, file page 10, lines 17-27
- Official Supreme Court Transcript — file page 4, lines 19-37 — Transcript, file page 4, lines 19-37
- Official Supreme Court Transcript — file page 5, lines 9-13 — Transcript, file page 5, lines 9-13
- Official Supreme Court Transcript — file page 58, lines 27-29 — Transcript, file page 58, lines 27-29
- Official Supreme Court Transcript — file page 6, lines 13-21 — Transcript, file page 6, lines 13-21
- Official Supreme Court Transcript — file page 6, lines 3-9 — Transcript, file page 6, lines 3-9
- Official Supreme Court Transcript — file page 6, lines 41-45 — Transcript, file page 6, lines 41-45
- Official Supreme Court Transcript — file page 7, lines 11-15 — Transcript, file page 7, lines 11-15
- Official Supreme Court Transcript — file page 7, lines 23-31 — Transcript, file page 7, lines 23-31
- Official Supreme Court Transcript — file page 7, lines 41-5 — Transcript, file page 7, lines 41-5
- Official Supreme Court Transcript — file page 8, lines 35-49 — Transcript, file page 8, lines 35-49
- Official Supreme Court Transcript — file page 9, lines 39-45 — Transcript, file page 9, lines 39-45
- Official Supreme Court Transcript — file page 9, lines 49-5 — Transcript, file page 9, lines 49-5
Why it matters
This case defines the scope of fee awards in bankruptcy. It affects how unsecured creditors recover costs. It clarifies the structure of the Bankruptcy Code.
Official sources for this section
- Official Supreme Court Transcript — file page 18, lines 41-47 — Transcript, file page 18, lines 41-47
- Official Supreme Court Transcript — file page 25, lines 17-27 — Transcript, file page 25, lines 17-27
- Official Supreme Court Transcript — file page 3, lines 19-17 — Transcript, file page 3, lines 19-17
- Official Supreme Court Transcript — file page 30, lines 43-7 — Transcript, file page 30, lines 43-7
- Official Supreme Court Transcript — file page 57, lines 37-25 — Transcript, file page 57, lines 37-25
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 17-27 — Transcript, file page 10, lines 17-27
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 4, lines 19-37 — Transcript, file page 4, lines 19-37
- Official Supreme Court Transcript — file page 5, lines 9-13 — Transcript, file page 5, lines 9-13
- Official Supreme Court Transcript — file page 58, lines 27-29 — Transcript, file page 58, lines 27-29
- Official Supreme Court Transcript — file page 6, lines 13-21 — Transcript, file page 6, lines 13-21
- Official Supreme Court Transcript — file page 6, lines 3-9 — Transcript, file page 6, lines 3-9
- Official Supreme Court Transcript — file page 6, lines 41-45 — Transcript, file page 6, lines 41-45
- Official Supreme Court Transcript — file page 7, lines 11-15 — Transcript, file page 7, lines 11-15
- Official Supreme Court Transcript — file page 7, lines 23-31 — Transcript, file page 7, lines 23-31
- Official Supreme Court Transcript — file page 7, lines 41-5 — Transcript, file page 7, lines 41-5
- Official Supreme Court Transcript — file page 8, lines 35-49 — Transcript, file page 8, lines 35-49
- Official Supreme Court Transcript — file page 9, lines 39-45 — Transcript, file page 9, lines 39-45
- Official Supreme Court Transcript — file page 9, lines 49-5 — Transcript, file page 9, lines 49-5
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 18, lines 41-47 — Transcript, file page 18, lines 41-47
- Official Supreme Court Transcript — file page 25, lines 17-27 — Transcript, file page 25, lines 17-27
- Official Supreme Court Transcript — file page 3, lines 19-17 — Transcript, file page 3, lines 19-17
- Official Supreme Court Transcript — file page 30, lines 43-7 — Transcript, file page 30, lines 43-7
- Official Supreme Court Transcript — file page 57, lines 37-25 — Transcript, file page 57, lines 37-25
- Official Supreme Court Transcript — file page 18, lines 41-47 — Transcript, file page 18, lines 41-47
- Official Supreme Court Transcript — file page 25, lines 17-27 — Transcript, file page 25, lines 17-27
- Official Supreme Court Transcript — file page 3, lines 19-17 — Transcript, file page 3, lines 19-17
- Official Supreme Court Transcript — file page 30, lines 43-7 — Transcript, file page 30, lines 43-7
- Official Supreme Court Transcript — file page 57, lines 37-25 — Transcript, file page 57, lines 37-25
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.