11 U.S.C. § 101

Section 101(13)(A) excludes equity security holders from the definition of a disinterested person even if they do not control the debtor.

In Re Intech Capital Corp. · filed 1988-06-24(13)(A)

The prohibition in § 101(13)(A) against the employment of equity security holders is not restricted to those who are controlling persons.

Section 101(13) excludes a creditor from the definition of a disinterested person.

In Re Viking Ranches, Inc. · filed 1988-07-29(13)

There is no dispute between the parties that Ernst is a creditor and, within the strict language of Section 327 and Section 101(13) is not a disinterested person.

Section 101(13)(A)–(D) allows debtor’s counsel to qualify as disinterested even when an interested third party funded its retainer.

In Re Glenn Electric Sales Corp. · filed 1988-08-02(13)(A)–(D)

Looking then, at the definition of “disinterested persons” set forth in 11 U.S. C. § 101(13), it is the opinion of the Court that the Kleinberg firm is disinterested pursuant to subparagraphs (A), (B), (C) and (D).

Section 101(13) defines a disinterested person; a proposed trustee with no connections to the debtor or relevant parties can qualify.

In Re Capital Services & Investments, Inc. · filed 1988-08-05(13)

As a result of the Court’s examination of Mr. Samson, the Court finds that he is a disinterested person as defined by 11 U.S. C. Sec. 101(13).

A debtor’s officer employed by an entity with an interest materially adverse to the estate is no longer a “disinterested person.”

In Re New York City Shoes, Inc. · filed 1988-08-08(13)(E)

As of that date, he was employed by an entity that had an interest materially adverse to the interest of the Debtor’s estate and hence he was no longer a “disinterested person.” 11 U.S.C. § 101(13)(E).

Section 101(13)(E) excludes counsel from the definition of a disinterested person when representing the debtor’s principals gives counsel an interest materially adverse to the estate.

In Re Kendavis Industries International, Inc. · filed 1988-09-28(13)(E)

Locke Purnell’s representation of the Davis family was an “interest materially adverse to the interest of the estate ... by reason of [a] direct or indirect relationship to, connection with, or interest in the debtor ...” 11 U.S.C. § 101(13)(E) (1982); ... Therefore, Locke Purnell was not disinterested and its employment as counsel for the Debtors was, in retrospect, inappropriate.

Section 101(13) defines a “disinterested person,” a qualification the court applied to the broker’s employment.

In Re Laguna Hills Financial Associates · filed 1988-11-18(13)

The evidence adduced in this matter proves that the Broker is a “disinterested person” in this matter and is thus qualified for employment from that standpoint.

A lawyer with a secured prepetition claim for nonbankruptcy legal fees is not disinterested when the claim makes the lawyer materially adverse to the estate.

In Re Watson · filed 1988-12-12(13)

Under the facts adduced in the instant case, the Court finds that Ewing’s conduct, and his secured prepetition claim for bankruptcy and nonbankruptcy work, render him not disinterested and materially adverse to the interests of the estate, the creditors, and the Debtor.

Section 101(13)(E) excludes a professional from the definition of a disinterested person when an economic or practical interest creates an actual or potential conflict with the estate.

In Re Glenn Electric Sales Corp. · filed 1988-12-12(13)(E)

For the purposes of this case, a non-disinterested party is one who may have an economic or practical interest that would tend to lessen the value of the bankrupt estate or that would create either an actual or potential dispute in which the estate is a rival.

An attorney may remain a disinterested person despite taking a mortgage to secure fees during the gap period of an involuntary bankruptcy.

In Re Shah International, Inc. · filed 1988-12-16(13)

Applying objective standards, under the circumstances of these cases, this court finds that counsel for the debtors remain disinterested persons notwithstanding their acceptance of the mortgages. This court agrees with the reasoning and holding of In re Martin, 817 F.2d at 182, to that effect. See also 11 U.S.C. §§ 101(13) and 327(a).

Section 101 excludes insiders from the definition of a disinterested person and includes affiliates among insiders.

In Re Park Avenue Partners Ltd. Partnership · filed 1988-12-23(13)(A)

The definition of “disinterested person” requires that the person not be an “insider.” 11 U.S.C. § 101(13)(A). The definition of “insider” includes a list of relationships that are not exhaustive. Among others, “insider” includes an “affiliate, or insider of an affiliate as if such affiliate were the debtor.” 11 U.S.C. § 101(30)(E). ... Therefore, CMG is not a disinterested person.

Section 101(13) defines a creditor as not disinterested, but a professional whose unsecured claim arose solely from prepetition employment may qualify under § 1107(b) if the claim is not materially adverse to the estate.

In Re Microwave Products of America, Inc. · filed 1989-01-12(13)

The Viking Court acknowledges that the statute is clear; if a person is a creditor, then that person is not disinterested under 11 U.S.C. § 101(13) and is subject to disqualification under section 327(a). ... This Court adopts the reasoning in Viking that a professional is not disqualified solely because of employment before the commencement of case. Further, that this provision applies to any professional who is a creditor solely because of that prepetition employment, which resulted in an unsecured debt under section 1107(b).

Section 101(13)(E) excludes a person with an interest materially adverse to the estate or its creditors from the definition of a disinterested person.

In Re Albright · filed 1989-01-25(13)(E)

11 U.S.C. § 101(13) provides that a “disinterested person” is one who is not a creditor or an equity security holder or an insider, and “does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor. ...” 11 U.S.C. § 101(13)(E). We think it clear that Cook, by virtue of its 50 percent interest in Midata and the timing of its obtaining such interest, held an interest adverse to the interest of the estate and of other creditors.

Section 101 excludes insiders from the definition of a disinterested person; an entity managing substantially all of a debtor’s property under a management agreement can qualify as an affiliate and thus an insider.

In Re Century Investment Fund VII Ltd. Partnership · filed 1989-02-02(13)(A)

The definition of “insider” includes a list of relationships that are not exhaustive. Among others, “insider” includes an “affiliate, or insider of an affiliate as if such affiliate were the debtor.” 11 U.S.C. § 101(30)(E). “Affiliate” means an “entity that operates the business or substantially all of the property of the debtor under a lease or operating agreement.” 11 U.S.C. § 101(2)(D). CMG has certainly been managing all of the property of the debtor under its management agreement. ... Therefore, CMG is not a disinterested person.

Section 101(13)(A) excludes a professional with a prepetition claim against the debtor from the definition of a disinterested person.

In Re Watervliet Paper Co., Inc. · filed 1989-02-17(13)(A)

Not only a strict reading, but I believe the only reading of Sections 327 and 101(13) of the Bankruptcy Code renders Applicant not “disinterested” and thus ineligible for appointment.

Section 101(13)'s definition of a disinterested person can require disqualification of an entire affiliated group when one attorney is nondisinterested.

Stanley v. Krogstad (In Re Petro-Serve Ltd.) · filed 1989-03-10(13)

It is not necessary to make a determination that Krogstad and Wood was a partnership for this Court to find that each person affiliated with the group had a sufficient relationship with others to require disqualification of the entire group because one of them was nondisinterested.

Under § 101(13), counsel’s prior relationship with a debtor’s parent does not defeat disinterestedness when counsel holds no interest adverse to the estate.

In Re Microwave Products of America, Inc. · filed 1989-03-10(13)

While 11 U.S.C. § 101(13) defines “disinterested”, Courts have construed the term both narrowly and liberally. ... Mr. Smith is sufficiently disinterested, and the Court finds that he holds no interest adverse to the estate.

Section 101(13)(D) excludes a law firm from being disinterested when one of its members served as the debtor’s officer or director within two years before the bankruptcy filing.

In Re SIS Corp. · filed 1989-03-15(13)(D)

Notwithstanding these disclosures which have been made by the affiant, and notwithstanding the prepetition resignations of Mr. Oliver, the fact that Mr. Oliver is a member of the applicant firm who served as an officer and director of SIS Corp. within two years prior to filing of the debtor corporations’ Chapter 11 petitions would not bring the firm into a “disinterested” posture as is required by § 101(13)(D).

Section 101(13) permits counsel who holds or represents no interest adverse to the debtor in the matters of employment to qualify as a disinterested person.

In Re Inslaw, Inc. · filed 1989-03-13(13)

The Court specifically finds that D.S. & M. did not hold or represent an interest adverse to Inslaw with respect to the matters for which it was employed and that it was “a disinterested person” within the meaning of 11 U.S.C. § 101(13).

Section 101(13)(E) requires the particular circumstances of an attorney’s prior creditor representation to create a materially adverse interest before that representation disqualifies the attorney as disinterested.

In Re Lee Way Holding Co. · filed 1989-03-16(13)(E)

On its face, 11 U.S.C. § 101(13), which is ,the definitional section applicable to §§ 327 and 1104, does not identify attorneys who have represented prejudgment creditors as incapable of qualifying as “disinterested.”

Section 101(13)(E) defines a disinterested person to exclude someone whose indirect relationship with the debtor gives rise to a materially adverse interest.

Matter of Roger J. Au & Son, Inc. · filed 1989-03-28(13)(E)

As to Mr. Taylor, even though his representation of Charles H. Au is indirect, Charles H. Au being a 50% shareholder in Cee-EM Realty, Inc., Mr. Taylor’s relationship with Charles H. Au cannot be found to be one of a disinterested person.

Section 101(13) excludes attorneys with materially adverse interests arising from their representation of an affiliated debtor from qualifying as disinterested persons.

In Re Chicago South Shore & South Bend Railroad · filed 1989-06-16(13)

It is and remains the opinion of this court that Missner and Skolnick could not now qualify under § 327 or § 101(13) as attorneys for the Trustee of the South Shore.

Section 101(13)(E) excludes a person with an interest materially adverse to the estate or its creditors from the definition of a disinterested person.

In Re Lee Way Holding Co. · filed 1989-05-19(13)(E)

[D]oes not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor or an investment banker specified in subparagraph (B) or (C) of this paragraph, or for any other reason. 11 U.S.C. § 101(13)(E). ... The Court cannot conclude that CMH was disinterested under 11 U.S.C. § 327(a).

Section 101(13) treats an equity security holder as interested; giving up voting control does not eliminate that interest.

In Re Glosser Bros., Inc. · filed 1989-06-12(13)

The fact that Bear Stearns’ employees will not vote their stock does not mean that they no longer have an interest in its condition, nor does it mean that they cannot try ... to control the Debtors from a position “offstage”.

Section 101(13)(D) excludes a firm from being disinterested when one of its partners served as a director of the debtor.

In Re Washington Manufacturing Co. · filed 1989-06-23(13)(D)

... because one of its partners had served as a director of one of the debtor corporations and therefore would not have been “disinterested” as required by 11 U.S.C. § 101(13)(D) and § 327(a).

An attorney with a prepetition unsecured claim for legal services is a creditor and is not a disinterested person, even when the claim is small.

In Re Watervliet Paper Co., Inc. · filed 1989-08-28(13)(A)

The Court, having made a thorough review of the record in the bankruptcy court proceedings, the bankruptcy court’s opinion, the appellate briefs, and having conducted independent research of the case law and appropriate federal statutes and regulations, finds that under a strict reading of the statutes, Clary Nantz was not a disinterested party.

A debtor's attorney does not lose disinterested status merely by holding a security interest in a retainer securing fees for the case.

Matter of K & R Min., Inc. · filed 1989-10-03(13)(A)

The United States Trustee and the Chapter 7 Trustee maintain that applicant cannot be a secured creditor of the debtor because it would then hold an interest adverse to the estate and not be disinterested pursuant to 11 U.S.C. § 101(13). ... The court finds the reasoning of Martin to be persuasive and accordingly, does not view the applicant as disqualified to be counsel for the debtor if, indeed, it possesses a security interest property of the debtor.

Section 101(13) excludes counsel from being disinterested when payment by the debtor’s creditors gives counsel a pecuniary interest materially adverse to the estate.

In Re Crimson Investments, N.V. · filed 1989-10-05(13)

Section 327(a) and Section 101(13) of the Bankruptcy Code require that the Court only appoint counsel for the Debtor that is a “disinterested person.” ... Moreover, by receiving compensation from Debt- or’s creditors, Debtor’s Counsel had, and has, a pecuniary interest materially adverse to the interest of the secured creditors and the interests of the estate — a conflict of interest that requires a denial of all compensation to Debtor’s Counsel.

A debtor’s attorney is not automatically excluded from the definition of a disinterested person because a disclosed third party insider paid the attorney’s fees.

In Re Kelton Motors, Inc. · filed 1989-12-08(13)(E)

We reject Creditors’ invitation to adopt a per se rule against this disclosed arrangement for legal representation by payment from a third party payor-insider where there is no evidence of a fee guarantee or material creditor relationship between the payor-insider and corporate debtor/client. Instead, we believe the inquiry must be case and fact specific.

Section 101(13)(D)’s two-year rule applies to former officers and directors of the debtor, but not to officers and directors of an affiliate.

United States Trustee v. PHM Credit Corp. (In Re PHM Credit Corp.) · filed 1990-01-26(13)(D)

The two-year back rule contained in this subsection applies to a subclass of insiders, the debtor’s officers and directors. This rule does not apply to other insiders, such as officers and directors of an affiliate.

Section 101(13) excludes a creditor from the definition of a disinterested person, including an attorney owed fees for prior representation.

In Re Jaimalito's Cantina Associates Ltd. Partnership · filed 1990-02-26(13)

The application for employment for general representation of the debtor must be denied because, as a creditor, Ms. Hab-bert is not a “disinterested person” as defined in 11 U.S.C. § 101(13) and as required by 11 U.S.C. § 327(a) ... in order to be eligible for employment.

A lawyer retained for a limited claim may be disinterested under § 101(13)(E) despite also representing a creditor when that representation creates no materially adverse interest.

National Westminster Bank USA v. Yaeger (In Re RPC Corp.) · filed 1990-03-09(13)(E)

A “disinterested” attorney is defined as one who “does not have an interest materially adverse to the interest of the estate or of any class of creditors.” 11 U.S.C. § 101(13)(E). ... The firm of Ross & Hardies does not hold an interest adverse to the estate by representing the estate as special counsel in its lender liability claim against the Bank.

Section 101(13)(E) excludes counsel with interests materially adverse to the estate from the definition of a disinterested person, even if the conflicting representation ended before the bankruptcy filing.

In Re Grabill Corp. · filed 1990-04-26(13)(E)

Thus, KMZ’s pre-petition simultaneous representation of Stoecker and the Debtors on the same legal matters giving rise to these cases, involved representation of interests materially adverse to the interest of the Debtors. The fact that Stoecker subsequently obtained separate counsel and that KMZ was not providing personal representation to him at the time the petitions were filed, does not obviate the conflict. Consequently, KMZ was not disinterested, and accordingly disqualified.

Section 101(13)'s definition of a disinterested person permits consideration of whether a financial adviser's prior underwriting creates a meaningful conflict and what disqualification would cost the estate.

In Re Federated Department Stores, Inc. · filed 1990-05-22(13)(B)-(C)

In weighing the gravity of any potential conflict of interest by virtue of Shearson’s prior underwriting, versus the significant costs that the estate and the public would have to bear if the Shearson application were denied, the Court holds that Shear-son’s prior underwriting of securities of Debtors does not disqualify it from being a disinterested person pursuant to 11 U.S.C. § 327(a). ... 11 U.S.C. § 101(13)(B) and (C) elaborate that “disinterested person” means a person who “is not and was not an investment banker for any outstanding security of the debtor;” and “has not been, within three years before the date of the filing of the petition, an investment banker for a security of the debtor, or an attorney for such an investment banker in connection with the offer, sale, or issuance of a security of the debt- or”.

Section 101(13)(E)’s disinterestedness requirement permits disqualification of an attorney representing both limited and general partners in bankruptcy because that representation always creates a potential conflict.

W.F. Development Corp. v. Office of the United States Trustee · filed 1990-07-13(13)(E)

An attorney in “disinterested” when he “does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to ... the debtor ... or for any other reason.” 11 U.S.C. § 101(13)(E). ... When one attorney represents both limited and general partners in bankruptcy, there will always be a potential for conflict, and disqualification is proper.

Section 101(13) defines disinterestedness in terms of a professional’s personal interest in the bankruptcy proceedings.

In Re Amdura Corp. · filed 1990-07-19(13)

The statute itself defines “disinterested,” in section 101(13). Essentially that section would disqualify counsel who themselves hold an interest which might be affected by the bankruptcy proceedings.

Section 101(13)(E) excludes counsel with an interest materially adverse to the bankruptcy estate from the definition of a disinterested person.

In Re Hathaway Ranch Partnership · filed 1990-06-26(13)(E)

“Disinterested person” is defined in 11 U.S.C. § 101(13). ... I find that L & E represents and holds an interest that is materially adverse to the interest of Hathaway’s bankruptcy estate.

A prospective managerial role in a reorganization plan does not by itself make a professional’s interest materially adverse to the estate, creditors, or equity security holders.

In Re Allegheny International, Inc. · filed 1990-07-31(13)(E)

Nevertheless, the possibility that Milligan may eventually play a managerial role in an as-yet speculative reorganization plan does, not mean that Milligan would fall prey to conflicting loyalties while employed under the special advisor agreement, or that his interest would be materially adverse to those of the estate, creditors or equity security holders.

Section 101(13)(E)'s definition of disinterestedness makes counsel's representation of both limited and general partners a disqualifying potential conflict.

In Re Development Corporation · filed 1990-08-24(13)(E)

An attorney in 'disinterested" when he "does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to ... the debtor ... or for any other reason." 11 U.S.C. Sec. 101(13)(E). ... When one attorney represents both limited and general partners in bankruptcy, there will always be a potential for conflict, and disqualification is proper.

Section 101(13)(E) excludes a trustee from the definition of “disinterested person” when serving both an estate and one of its creditors creates a conflict of interest.

Matter of Bh & P, Inc. · filed 1990-09-13(13)(E)

It is unnecessary, however, for the Court to examine this finding in any depth, for the bankruptcy court also found that the trustee was not “disinterested” under § 101(13)(E). ... The bankruptcy court therefore properly found that Maggio’s dual role as trustee for Herman and Berkow and for one of their creditors — the BH & P estate — constituted an impermissible conflict of interest.

Section 101 defines an affiliate by a 20 percent voting securities ownership threshold; an affiliate is an insider and therefore is not a disinterested person.

In Re Lakeside I Corp. · filed 1990-10-23(2)(B)

In turn, 11 U.S.C. § 101(30)(E) defines an insider to include an affiliate of the Debtor. 11 U.S.C. § 101(2)(B) in pertinent part defines an affiliate as a “corporation 20 percent or more of whose outstanding voting securities are directly or indirectly owned ... by the debtor, or by an entity that ... owns ... 20 percent or more of the outstanding voting securities of the debtor....” Based on the foregoing, Farm & Grove is undoubtedly an affiliate and thus, an insider, of the Debtor.

An estate professional loses disinterested status when it also provides services to a buyer negotiating to purchase the debtor’s assets.

In Re CVC, Inc. · filed 1990-10-24(13)(E)

Once it began providing services to Gardner that were directly related to Gardner’s purchase of the assets of CVC, Inc., its disinterestedness was lacking.

Section 101(13) excludes insiders from the definition of a disinterested person.

Matter of All Seasons Industries, Inc. · filed 1990-11-05(13)

As defined by § 101(13), a disinterested person cannot be an insider.

Section 101(13)(E) defines a disinterested person to exclude counsel whose interests are materially adverse to the estate or a class of creditors, including through other relationships or conflicts.

Matter of Celotex Corp. · filed 1991-01-30(13)(E)

Section 101(13)(E) of the Bankruptcy Code includes in its definition of “disinterested Person” one who “does not have an interest materially adverse to the interest of the estate or of any class of creditors ..., by reason of any direct or indirect relationship to, connection with, or interest in, the debtor or an investment banker ..., or for any other reason.” ... This Court concludes the fairest reading of these sections is a contemplation by Congress that the bankruptcy court should oversee the broadest aspects of counsel’s employment as it relates to any real and potential conflicts of interest.

Section 101(13)(A) excludes a debtor’s prepetition creditor from the definition of a disinterested person.

In Re Diamond Mortg. Corp. of Illinois · filed 1990-11-27(13)(A)

Thus, under any rational reading of § 101(13)(A), Platek was a creditor of these debtors at all times and was never disinterested.

Minor, unrelated legal services do not create a materially adverse interest under § 101(14)(E) when they do not impair an examiner’s or counsel’s duties.

Matter of Interco Inc. · filed 1991-05-24(14)(E)

Section 101(14)(E) requires that a disinterested person not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders by reason of any direct or indirect relationship to, connection with, or an interest in, the debtor or any investment banker specified in Section 101(14) or, for any other reason. ... Upon reviewing all of the facts presented and the applicable legal standards, the Court finds that there is no conflict of interest presented here and that both the Examiner and KDW are disinterested persons under the Bankruptcy Code.

Section 101(13)(A) excludes insiders from the definition of a disinterested person.

Childress v. Middleton Arms, L.P. (In re Middleton Arms, Ltd. Partnership) · filed 1991-06-06(13)(A)

The debtors admit that Jacques Inc. is an insider under section 101(30)(F). Therefore, Jacques Inc. is an interested person for reasons other than prior employment, and does not qualify as a disinterested person for reasons other than its status as a former employee of the debtors.

Section 101(13)(E) excludes counsel from the definition of a disinterested person when counsel represents an interest materially adverse to a debtor’s estate.

In Re Professional Development Corp. · filed 1991-06-21(13)(E)

Therefore, by virtue of McDonnell Boyd’s representation of both debtors, they are representing an interest (that of THC’s) which is materially adverse to TDC and are not disinterested. ... While the avoidance of additional expense to the estates is a factor which should be considered, it may not obviate compliance with Sections 327(a) and 101(13).

Section 101(13)’s definition of a disinterested person requires a case-specific assessment of whether an attorney’s security interest makes the attorney’s interest materially adverse to the estate.

In Re Gilmore · filed 1991-05-29(13)

A “disinterested person,” as required by 11 U.S.C. § 327 for employment of professional persons, is defined in 11 U.S.C. § 101(13) as meaning a person that, among other factors, “is not a creditor, an equity security holder, or an insider,” and “does not have an interest materially adverse to the interest of the estate ... by reason of any direct or indirect relationship to, connection with, or interest in, the debtor ... or for any other reason.” 11 U.S.C. § 101(13)(A) and (E). ... This Court agrees and concludes that a per se rule is not practicable.

A lawyer whose fees are paid by a debtor’s creditor is not a disinterested person under § 101(13).

In Re Huntmar Beaumeade I Ltd. Partnership · filed 1991-05-31(13)

Zuckerman, Spaeder, by receiving payment of its fees from a creditor of the debtors, is not “disinterested”'as that term is used in Sections 327(a) and 101(13) of the Bankruptcy Code.

Section 101(13)(D) excludes someone who was a debtor’s director, officer, or employee within two years before the bankruptcy filing from the definition of a disinterested person.

In Re M-H Group, Inc. · filed 1991-08-08(13)(D)

A “disinterested person” is one who ... (D) is not and was not, within two years before the date of the filing of the petition, a director, officer, or employee of the debtor ...; ... 11 U.S.C. § 101(13)(A),(D), and (E). ... M & M admitted that one of its partners served as secretary for all three corporate Debtors, but resigned from two of them within one year, and in M-H’s case one day, before the Bankruptcy petition was filed. ... Clearly, the Court cannot authorize the application of M & M’s appointment based upon these connections under Section 327.

Section 101(13) excludes counsel from being disinterested when loyalty to a debtor’s principal creates an interest materially adverse to the estate.

In Re Humble Place Joint Venture · filed 1991-07-29(13)

Section 101 of the Code defines "a disinterested person" as one who "does not have any interest materially adverse to the interest of the estate ... by reason of any direct or indirect relationship to, connection with, or interest in the debtor ... or for any other reason." 11 U.S.C. Sec. 101(13). ... We disagree. This is in fact a classic case for disqualification of a debtor's counsel.

A trustee does not become a creditor under the disinterested-person definition by asserting a claim on behalf of an estate.

In Re Bh & P Inc., a New Jersey Corporation Philip Alan Herman, Bruce Berkow, Debtors. Appeal of Carmen J. Maggio, Indiv · filed 1991-12-05(14)(A)

We find that the bankruptcy court erred in holding that a person who, as trustee, asserts a claim on behalf of the estate that he serves, and, therefore, acts in a representational capacity, becomes a "creditor" for purposes of section 101(14)(A).

Section 101(13)(E) treats a person as interested when even a slight relationship could affect the independence and impartiality required of estate professionals.

In Re Rusty Jones, Inc. · filed 1991-12-09(13)(E)

Section 101(13) is a “guideline for the court to follow in its sound discretion to insure that persons employed shall have the essential character of independence and disinterestedness which is required.”

Section 101(13)(E) does not disqualify debtor’s counsel as an interested person when its concurrent representation of a secured creditor concerns unrelated matters and any potential conflict is too remote.

In Re Dynamark, Ltd. · filed 1991-12-20(13)(E)

Only the concurrent representation of conflicting interests disqualifies an attorney from representing a debtor-in-possession. ... Thus, any potential conflict that may exist is too remote to warrant disqualification on these grounds. ... In conclusion, this court finds Stroock to be disinterested within the meaning of § 101(13)(E) as applicable to § 327(a).

A professional owned by a debtor’s insider is not a disinterested person eligible for employment by the debtor.

In Re Sky Valley, Inc. · filed 1992-01-08(14)

As an insider, Mr. Anglin, and thus, Bridge Properties, is not disinterested and is disqualified from employment by Debtor as a professional.

Section 101(13)(E) excludes an attorney who has represented a debtor's shareholder from being disinterested with respect to the debtor-in-possession.

Grabill Corp. v. Pelliccioni · filed 1992-01-16(13)(E)

Where an attorney has represented a shareholder, he is not disinterested under Section 101(13) with respect to the debtor-in-possession.

Section 101(14) does not automatically disqualify a law firm from representing a debtor after filing because it has a claim for services performed before filing.

In Re American Thrift & Loan Ass'n · filed 1992-01-31(14)

As already discussed, if a firm has a claim for pre-petition services, it is not automatically disqualified from representing the debtor post-petition, notwithstanding the language of 11 U.S.C. § 101(14).

Section 101(14)'s definition of a disinterested person excludes counsel whose representation of a shareholder conflicts with the debtor estate's interests.

In Re EWC, Inc. · filed 1992-03-18(14)

The professional representing both the debtor-in-possession and its shareholder is disqualified only when the representation of the shareholder puts the professional in a position where that person “holds or represents an interest adverse to the estate” or is no longer disinterested as defined in 11 U.S.C. § 101(14).

Section 101(14) excludes insiders from the definition of a disinterested person.

In Re Jones · filed 1992-03-16(14)

Enterprises is an affiliate of the debtor. 11 U.S.C. § 101(2)(B). DSJ is an insider of Enterprises because it is an affiliate of the latter. 11 U.S.C. § 101(31)(E). Thus, DSJ is an insider of the debtor and not a disinterested person. 11 U.S.C. § 101(14).

Section 101(14)(E) excludes a professional from being disinterested if the professional has an interest materially adverse to the estate or to a class of creditors or equity holders.

Campbell v. Childress (In Re Professional Development Corp.) · filed 1992-05-01(14)(E)

In this case, there is no indication that McDonnell Boyd has an interest materially adverse to the interest of PDC or Mr. Campbell by reason of any direct or indirect relationship to the debtors under § 101(14)(E).

Section 101(14)(E) excludes a person from being disinterested when an outside duty creates an interest materially adverse to the estate.

In Re Tinley Plaza Associates, L.P. · filed 1992-06-05(14)(E)

In addition, § 101(14)(E) of the definition is a catch-all provision that overlaps with § 327(a)’s requirement that counsel for a debtor-in-possession not hold an interest adverse to the estate. ... Therefore, Olshan is disqualified from representing the Debtor because Zukerman’s duty to First Partners constitutes an interest materially adverse to the Debtor’s interests.

An attorney who served as a debtor’s officer within two years is not disinterested, but that status does not automatically disqualify the attorney’s law firm.

In Re Creative Restaurant Management, Inc. · filed 1992-04-08(14)

While he himself is per se ineligible to act as counsel, 11 U.S.C. § 101(14)(D), his firm does not necessarily have an interest materially adverse to that of the debtor or its creditors.

Section 101(14) defines who qualifies as a “disinterested person” for employment in a bankruptcy case.

In Re French · filed 1992-04-21(14)

The term “disinterested person” is defined in Section 101 of the Code. ... In this case, Debtor’s application states that the requested attorney has no connection with the Debtor, creditors, or other parties in the bankruptcy case. This satisfies the “disinterested person” requirement.

Claims between related estates do not automatically disqualify a common trustee under § 101(14)(E); the trustee’s interest must be materially adverse to an estate.

White v. Tendler (In re Lyons Transportation Lines, Inc.) · filed 1992-08-27(14)(E)

§ 101(14)(E) provides a more general disinterest provision. ... We conclude that White’s obligation to pursue claims on behalf of both JRC and Lyons does not create any material adverse interest and that White is therefore not disqualified in either the Lyons case or the JRC case.

Section 101(14) excludes a creditor from the definition of a disinterested person; waiving a prepetition claim removes that basis for disqualification.

In Re Hub Business Forms, Inc. · filed 1992-10-21(14)(A)

If Walter waives his claim, he will no longer be a creditor, and the bar to his employment resulting from his lack of disinterestedness as a creditor will be removed.

A person whose relationship with the debtor creates a materially adverse interest is not disinterested.

In Re National Distributors Warehouse Co., Inc. · filed 1992-11-04(14)(E)

A disinterested person is one who does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, in connection with, or interest in, the debtor ... or for any other reason. ... In the instant case, however, the conflicts among the parties are so materially adverse that the dual representation by Rainey and the Heiskell firm cannot be permitted.

Section 101(14)(E) excludes an attorney with a materially adverse interest arising from a client relationship from the definition of a disinterested person; client consent does not cure that interest.

In Re American Printers & Lithographers, Inc. · filed 1992-12-22(14)(E)

A “disinterested person” is defined in the Bankruptcy Code as one that “does not have an interest materially adverse to the interest of the estate ... by reason of any direct or indirect relationship to, connection with, or interest in, the debtor ... or for any other reason.” 11 U.S.C. § 101(14)(E). ... The consent by the clients does not always create disinterestedness in bankruptcy, and does not do so here.

Section 101(14)(E) includes a person with no interest materially adverse to the bankruptcy estate in its definition of a disinterested person.

In Re Howell · filed 1992-12-03(14)(E)

These two criteria significantly overlap because “disinterested person,” as defined in 11 U.S.C. § 101(14)(E), includes a person who does not have an interest materially adverse to the estate.

Section 101(14) excludes a law firm owed attorney fees by the debtor from the definition of a disinterested person because the firm is a creditor.

In re Classic Roadsters, Ltd. · filed 1993-01-22(14)(A)

Ergo, by virtue of the attorney fees incurred for work performed on behalf of the Debtor, the Sol-berg law firm is a creditor under section 101(14), and thereby is precluded from representing the Debtor.

Section 101(14)'s definition of a disinterested person does not disqualify counsel solely because the firm also represents the trustee in an individual bankruptcy case.

In Re Smuggler's Beach Properties, Inc. · filed 1993-01-08(14)

The term "disinterested" is defined in § 101, which prescribes five elements: ... 11 U.S.C. § 101(14). The Association cites no authority, and the Court has been unable to locate any decision to support its contention that HASC is not disinterested or that the representation of the Trustee in his individual capacity disqualifies HASC from representing the Trustee in his fiduciary capacity. Accordingly, the objection of the Association is overruled.

Section 101(14) does not exclude an estate accountant from being a disinterested person merely because it audits a competitor or potential buyer, when it has no materially adverse interest.

In Re Aircraft Instrument & Development, Inc. · filed 1993-02-24(14)

26. Allen, Gibbs & Houlik is a disinterested person as that term is defined under the Bankruptcy Code.

Section 101(14)(E) treats an attorney as not disinterested when the attorney’s representation of another client creates a conflict with the bankruptcy estate, even if the other work is unrelated.

In Re Envirodyne Industries, Inc. · filed 1993-03-03(14)(E)

The court reads § 101(14)(E) as a guideline for determining what conflicting representations are prohibited by the Code. ... Thus, an attorney who represents a debtor-in-possession while also representing a party-in-interest in unrelated matters is disqualified only if such representation of the party in interest puts the attorney in a position where he or she has a conflict of interest i.e. when such client has an interest adverse to the estate, then such attorney is no longer considered disinterested.

Section 101(14)(A) defines a disinterested person to exclude creditors, but the court applied that exclusion flexibly when retaining a creditor accountant was necessary to the debtor’s reorganization.

In Re Sharon Steel Corp. · filed 1993-03-17(14)(A)

Section 101(14)(A) defines “disinterested person” as one that “is not a creditor ...” 11 U.S.C. § 101(14)(A). ... While some courts do interpret § 327(a) literally, we believe that a more practical view is required which considers the economic realities of the case and the overriding purposes of Chapter 11 of the Bankruptcy Code. ... The economic realities of this case make Price Waterhouse’s appointment imperative.

Section 101(14)(E) excludes from the definition of a disinterested person anyone whose interests or relationships could even faintly compromise their independence and impartiality.

In Re Black Hills Greyhound Racing Ass'n · filed 1993-03-25(14)(E)

The latter “catch-all clause” is broad enough to exclude anyone with some interest or relationship that would even faintly color the independence and impartial attitude required by the Code and Bankruptcy Rules.

Section 101(14)(A) treats a creditor as an interested person, but an unsecured claim alone does not automatically bar the creditor’s employment as counsel.

Sharon Steel Corp. v. SKW Metals & Alloys, Inc. (In Re Sharon Steel Corp.) · filed 1993-06-22(14)(A)

Although Reed Smith is a creditor, thereby being defined as an “interested person” under 11 U.S.C. § 101(14)(A), Reed Smith is an unsecured creditor enjoying no preferred status.

Section 101(14)(B) excludes an investment banker for a debtor’s outstanding securities from the definition of a disinterested person.

Bankr. L. Rep. P 75,365 in Re Eagle-Picher Industries, Inc., Debtor. M. Scott Michel Conrad J. Morgenstern v. Eagle-Pich · filed 1993-05-06(14)(B)

The language of section 327(a), when read in conjunction with the definitions set out in section 101(14), does not leave room for debate: Goldman, Sachs is and was an investment banker for outstanding securities of the debtors, and as such, is not a disinterested person within the meaning of the statute.

Section 101(14)(A) and (E) defines a disinterested person for purposes of employing counsel in bankruptcy; counsel with conflicting ties to the debtor’s principal and affiliates does not qualify.

In Re Prudent Holding Corp. · filed 1993-05-10(14)(A), (E)

SGO is not a disinterested person as such term is defined in 11 U.S.C. § 101(14)(A) and (E) and is accordingly ineligible to serve as attorneys for the Debtor.

Section 101(14)(E) excludes a person with a materially adverse interest arising from a direct or indirect relationship with the debtor from the definition of a disinterested person.

In Re Swansea Consolidated Resources, Inc. · filed 1993-06-07(14)(E)

11 U.S.C. § 101(14) defines “disinterested person” as one who “is not ... an insider,” § 101(14)(A); “is not and was not, within two years before the date of the filing of the petition, a director, officer, or employee of the debtor,” § 101(14)(D); or “does not have an interest materially adverse to the interest of the estate or of any class of creditors ..., by reason of any direct or indirect relationship to, connection with, or interest in, the debtor,” § 101(14)(E) (emphasis added). ... Here, we find that the action of the Applicant was taken knowingly, to avoid compliance with the rule, in an effort to further the interests of the principals of the Debtor, which were clearly adverse to those of the Estate.

Section 101(14)(A) excludes a debtor’s creditor or insider from the definition of a disinterested person.

In Re Yuba Westgold, Inc. · filed 1993-06-07(14)(A)

A “disinterested person” is defined in 11 U.S.C. § 101(14). Terra is not a disinterested person because it is both a creditor and an insider. 11 U.S.C. § 101(14)(A). Terra’s status as an insider derives from its position as an “affiliate” of the debtor, 11 U.S.C. §§ 101(31)(E), 101(2)(A).

Section 101(14)(A) excludes creditors from the definition of disinterested persons, but courts have limited discretion when deciding whether that status disqualifies a professional from employment.

United States Trustee v. Price Waterhouse (In Re Sharon Steel Corp.) · filed 1993-05-12(14)(A)

Although the BH & P Court was dealing with interdebtor multiple representation and the distinction between “potential” and “actual” conflicts set forth in 11 U.S.C. § 327(c), this Court can find no reason why this logic should not be extended to § 101(14)(A) disqualifications.

Section 101(14)(E) excludes a law firm from the definition of a disinterested person when its fee arrangements give it an interest adverse to the estate.

In Re Adam Furniture Industries, Inc. · filed 1993-08-17(14)(E)

Therefore, I find the law firm “holds an interest adverse to the estate” under § 327(a) and § 101(14)(E) which disqualifies it from employment as debtor’s attorney.

Section 101(14) excludes a debtor’s corporate officer from the definition of a disinterested person.

Rome v. Braunstein (In Re Chestnut Hill Mortgage Corp.) · filed 1993-07-26(14)(A), (D)

Although the bankruptcy judge did not base her decision on this ground, the law is clear that appellant’s service as an officer of the corporation disqualified him as counsel to CHMC because he was not a “disinterested person.” 11 U.S.C. § 101(14)(A), (D) (Supp. Ill 1991).

Section 101(14) does not disqualify counsel for a conflict of interest when counsel and the estate share an interest in maximizing the estate’s recovery.

Chrysler Credit Corp. v. B.J.M., Jr., Inc. · filed 1993-10-14(14)

... we too can find no inherent conflict of interest between Lashinger, Gambone and B.J.M., Jr., Inc. nor has Chrysler Credit Corporation been able to show that the disputed representation would present a conflict within the meaning of 11 U.S.C. § 101(14). To the contrary, insofar as the recovery of as much money as possible for the bankruptcy estate is in the best interests of all concerned, particularly the guarantors, we conclude that, if anything, these three parties share a common goal and a parallel interest.

Section 101(14)(E) excludes counsel whose allegiance to a debtor’s controlling shareholder creates an interest materially adverse to the estate.

In Re Granite Sheet Metal Works, Inc. · filed 1993-10-26(14)(E)

The fact that counsel held itself out as representing only the debtor, while in reality serving another master, did not free counsel from the requirement of disinterestedness.

Section 101(14)(E) excludes a person with an interest materially adverse to the bankruptcy estate from the definition of a disinterested person; representing someone whose payments could reduce the estate can create a disqualifying conflict.

TWI International, Inc. v. Vanguard Oil & Service Co. · filed 1994-01-10(14)(E)

Section 101(14)(E) defines a disinterested person as one who “does not have an interest materially adverse to the interest of the estate.” , 11 U.S.C. § 101(14)(E). ... In sum, the Court concludes that there is a “potential actual conflict” if Mr. Simpson were to represent Butler in this action.

Section 101(14)(D)’s definition of a disinterested person disqualifies a law firm when one of its partners recently served as the debtor’s director.

In Re Weibel, Inc. · filed 1993-12-01(14)(D)

For simplicity, the Court will focus on the ground for disqualifying the McCutchen Firm which it considers the clearest: the fact that, as noted above, one of the McCutchen Firm’s partners served as a director of the Debtor until just prior to the commencement of the bankruptcy case. ... This Court will follow the majority rule. If a partner is disqualified, the firm is disqualified.

Section 101(14)’s disinterested-person definition excludes an estate professional whose investment in a potential purchaser creates a conflict with the professional’s duties to the estate.

Matter of CF Holding Corp. · filed 1994-02-17(14)

Cooper’s decision to invest $2 million in Interlaken Investment, an entity created and controlled by Berkley, when Berkley was in the process of becoming a bidder for the acquisition of the debtors, at the very least, created the appearance of a conflict with Zolfo, Cooper’s professional duties in dealing with other potential acquir-ors.

Section 101(13)’s disinterested-person standard prevents counsel with a potential conflict of interest from representing a debtor, regardless of counsel’s integrity.

In Re Red Lion, Inc. · filed 1994-02-10(13)

11 U.S.C. § 327(a) of the code, establishes two requirements for qualification of Debtor’s attorney: 1) the attorney must not hold or represent an interest adverse to the estate; and 2) the attorney must meet the disinterested person standard of 11 U.S.C. § 101(13). ... Debtor’s counsel must be a disinterested person. The purpose of this standard is that Congress intended to prevent conflicts of interest without regard to the integrity of the person under consideration for employment.

Section 101(14) excludes a proposed professional with a conflicting personal interest from the definition of a disinterested person.

In Re Asher · filed 1994-02-24(14)

Additionally, the person nominated by Trustee as Co-Counsel, while highly qualified, is not a disinterested person as required by the Bankruptcy Code.

Section 101(14) excludes creditors from the definition of a disinterested person.

United States Trustee v. Price Waterhouse Sharon Steel Corporation Sharon Specialty Steel Inc. Monessen Inc · filed 1994-03-16(14)

Under Section 101(14), a “disinterested person” must be a person who “is not a creditor.”

Section 101(14)(A) excludes creditors from the definition of a disinterested person, including professionals owed fees for prepetition services.

In Re Eastern Charter Tours, Inc. · filed 1994-05-12(14)(A)

The Bankruptcy Code clearly specifies that creditors may not be employed by the estate as professionals, and this Court is not free to ignore legislative enactments just because it may appear that another result might better serve the interest of the estate.

Section 101(14)(E) allows a court to find a proposed estate professional insufficiently disinterested because the person works for the court handling the bankruptcy case.

In re Goldsby · filed 1994-05-18(14)(E)

In the present matter, the language of § 101(14)(E) effectively precludes Curtain’s appointment where it allows the consideration of disinterestedness “... for any other reason”.

Section 101(14)(A) excludes a debtor’s creditors, equity security holders, and insiders from the definition of a disinterested person.

In Re Remington Development Group, Inc. · filed 1994-06-10(14)(A)

An attorney is not "disinterested” if, among other things, he or she is a creditor, an equity security holder, or an insider of the debtor. 11 U.S.C. § 101(14)(A). ... And the facts of this case, in which McKenna was owed a substantial sum for services unrelated to the events precipitating the Chapter 11 filing, are a clear case for disqualification.

Section 101(14) excludes a person who controlled the debtor before filing from being disinterested.

In Re Milestone Educational Institute, Inc. · filed 1994-05-25(14)

If Raftery commenced the case acting as a director of the Debtor he would not be disinterested, see 11 U.S.C. § 101(14), (31)(B)(i). As a person in control of the Debtor prior to the filing, he would not be disinterested either. Id. § 101(3 l)(B)(iii). Accordingly, Raftery and his firm are ineligible to serve as counsel to the Debtor.

Section 101(14) defines a disinterested person by excluding specified creditors, equity holders, investment bankers, and people with interests materially adverse to the estate.

In Re Bellevue Place Associates · filed 1994-07-11(14)

“Disinterested” is a term of art defined in a rather narrow sense under § 101 of the Bankruptcy Code. A “disinterested person” includes one who is not a creditor, not an equity security holder, not an investment banker for a security of the debtor and who has not been an investment banker for the past three years or an attorney for such an investment banker with regard to the sale of debtor’s securities, and is not a director, officer or employee of the debtor or such investment banker.

A creditor is not a disinterested person under Section 101(14)(A).

Gray v. English · filed 1994-07-25(14)(A)

A creditor, of course, is not disinterested. Id. Sec. 101(14)(A).

Section 101(14) does not disqualify an attorney based on affiliations that create no interest adverse to the debtor’s estate.

In re Edgewater Sun Spot, Inc. · filed 1994-10-12(14)(E)

None of Debtors’ allegations establish that P & H was not a disinterested person within the meaning of § 101(14) of the Code.

A creditor is not a disinterested person under § 101(14), regardless of the size of its claim.

In Re 7th Street & Beardsley Partnership · filed 1994-11-30(14)

Regardless of the size of its claim, any creditor is necessarily not “disinterested.” 11 U.S.C. § 101(14). Deloitte is such a creditor, even though the Debtor denominated its claim as “de minimis” in its application to employ Deloitte.

A professional with a prepetition claim against the debtor is not a disinterested person under § 101(14).

First Interstate Bank of Nevada, N.A. v. CIC Investment Corp. (In Re CIC Investment Corp.) · filed 1994-12-06(14)

Code Sections 327(a) and 101(14) explicitly provide that a professional with a prepetition claim against the debtor cannot qualify as disinterested.

Section 101(14) excludes a creditor or a person with an interest materially adverse to the estate from the definition of a disinterested person.

In Re William L. Prince, Debtor. Electro-Wire Products, Inc. v. Sirote & Permutt, P.C. · filed 1994-12-20(14)

Sirote cannot possibly qualify as a “disinterested person” under the facts of this case. Sirote was a creditor of the Debtor, albeit for a relatively small amount, and Sirote’s representation of Mrs. Prince is undeniably an interest adverse to the Debtor’s estate.

Section 101(14) excludes an investment banker with qualifying ties to the debtor from the definition of a disinterested person.

In Re Federated Department Stores, Inc. · filed 1995-01-17(14)

Since Lehman Brothers was an interested person from the very outset, it was never "a professional person employed" under that section.

Section 101(14)(A) excludes a creditor from the definition of a disinterested person, even when the creditor has no other adverse interest.

In Re Fulgham Enterprises, Inc. · filed 1995-04-20(14)(A)

A creditor is not a disinterested person and consequently may not qualify for employment by a debtor.

Section 101(14) excludes a creditor with an unpaid prepetition claim from the definition of a disinterested person.

In re South Shore Golf Club Holding Co. · filed 1995-05-16(14)

Indeed, Mr. Colello holds an outstanding pre-petition claim in the amount of $13,-400. Unwilling to waive any portion of that claim, Mr. Colello could not qualify as a disinterested party, as that term is defined in 11 U.S.C. § 101(14).

Section 101(14)(E) excludes an attorney from the definition of a disinterested person when representing another bankruptcy estate gives the attorney a materially adverse interest.

In re First Ambulance Center of Tennessee, Inc. · filed 1995-04-28(14)(E)

In these circumstances, the attorney who represents the debtor in one case cannot help but have “an interest materially adverse to the interest of the estate” in the other case, and thus cannot be a “disinterested person” under § 101(14)(E).

Section 101(14)(E) does not disqualify a former officer’s law firm when the firm has no materially adverse interest.

Capen Wholesale, Inc. v. Michel (In Re Capen Wholesale, Inc.) · filed 1995-07-12(14)(E)

In that Roth has: 1) resigned as assistant secretary, 2) never actually performed any duties while assistant secretary, and 3) will not participate in the bankruptcy proceeding, D’Anco-na’s continued representation of its longstanding client, Capen, does not, in this court’s view, raise even the slightest appearance of impropriety, let alone the material adverse interest required under section 101(14)(E).

Section 101(14)(A) excludes a debtor’s creditor from the definition of a disinterested person.

In Re Guard Force Management, Inc. · filed 1995-08-10(14)(A)

Additionally, Kerstein was a creditor of the Debtor at the time of the commencement of the second Chapter 11 case because, as he states in his fee application, he was owed money for services rendered with respect to the state court matters that commenced during the pendency of the Debtor’s first Chapter 11 case. Accordingly, Kerstein was not “disinterested” at the time the Debt- or filed its motion for authority to employ him as counsel and at the time Kerstein filed his affidavit, and the Court would not have authorized his employment.

An insider’s payment of a debtor’s counsel’s retainer does not, by itself, make counsel a person who is not disinterested; the court examines the circumstances for an adverse interest.

In Re Missouri Mining, Inc. · filed 1995-09-20(14)

Instead, the Court must look at the facts of each case to determine whether counsel holds or represents an interest adverse to the estate, and is not disinterested.

Section 101(14)(E) excludes a professional with a materially adverse interest from the definition of a disinterested person; dual representation can create such a conflict.

In Re Quality Beverage Co., Inc. · filed 1995-09-27(14)(E)

Section 101(14) contains the Bankruptcy Code definition of “disinterested person.” ... In the instant case, Coopers has performed services for the Committee, and now seeks to perform services for the Trustee who has potential preference actions against members of the Committee, resulting in a potential dual representation. Where there is a dual representation, an “actual conflict” exists.

Section 101(14)(E) excludes a person with an interest materially adverse to the estate arising from a relationship with the debtor from the definition of a disinterested person.

Carr v. Sandler · filed 1995-11-30(14)(E)

Since Appellee Sanchez has “an interest materiañy adverse to the interest of the estate ... by reason of any direct or indirect relationship to ... the debtor”, he cannot be a disinterested party within the terms of 11 U.S.C. § 101(14)(E) of the Bankruptcy Code. Therefore, Appellee Sanchez is an interested party.

Section 101(14)(E) requires a disinterested professional to have no interest materially adverse to the estate or any class of creditors or equity security holders.

In Re Kliegl Bros. Universal Electric Stage Lighting Co. · filed 1995-12-28(14)(E)

In addition, because 11 U.S.C. § 328(c) incorporates 11 U.S.C. § 101(14), the professional person must not hold an interest materially adverse to the interest of creditors or equity security holders.

Section 101(14)(E) defines a disinterested person by whether the person has an interest materially adverse to the estate or a class of creditors because of a connection with the debtor.

In Re Caldor, Inc.-NY · filed 1996-02-27(14)(E)

In relevant part, a “disinterested person” is one who “does not have an interest materially adverse to the interest of the estate or of any class of creditors ... by reason of any direct or indirect relationship to, connection with, or interest in, the debtor_” 11 U.S.C. § 101(14)(E). Because §§ 101(14) and 327(a) overlap, the two prongs of § 327(a) are satisfied when the professional to be retained is found to be a “disinterested person”.

Section 101(14) defines a disinterested person to exclude a creditor or a person with an interest materially adverse to the estate.

Matter of Crivello · filed 1996-04-01(14)

Section 101(14) of the Code defines a “disinterested person.” ... Consequently, it is the decision of the court that KGW was not disinterested when it was appointed as Chapter 11 counsel and that the order of appointment, dated February 8, 1993, should be vacated.

Section 101(14) excludes a creditor from the definition of a disinterested person.

In Re Argus Group 1700, Inc. · filed 1996-08-06(14)

Under § 327(a), the Ro-sen Firm, a creditor, is not disinterested and may not be employed.

Section 101’s definitions of “disinterested person” and “person” do not impute an individual attorney’s disqualification to the attorney’s law firm.

Vergos v. Timber Creek, Inc. · filed 1996-08-27(14), (41)

The Code defines “person” to include an “individual, partnership, and corporation. ...” 11 U.S.C. § 101(41). ... After a careful review of the statute, the court concludes that there is no basis in the Bankruptcy Code for imputing the disqualification of an individual to that person’s associational ties. First, the quoted sections of the bankruptcy code are silent as to the question of imputation of a law firm member’s disqualification to the firm itself.

Section 101(14)(E) excludes a trustee who hires his own professional firm from the definition of a disinterested person because the arrangement creates a potential conflict of interest.

In Re Palm Coast, Matanza Shores Limited Partnership, a Connecticut Limited Partnership, Debtor. United States Trustee v · filed 1996-11-27(14)(E)

A trustee who hires his own professional firm to assist him cannot be a “disinterested person” who has no interest adverse to the estate. Once the trustee’s firm is hired by the estate, the trustee’s personal interests are implicated. At that point, the trustee’s independence and disinterestedness are compromised by a potential conflict of interest.

Section 101(14)(E) excludes a professional from the definition of a disinterested person when the professional has an interest materially adverse to the estate.

Matter of Crivello · filed 1997-02-18(14)(E)

Thus, after reviewing the entire record, I believe that the bankruptcy judge’s finding that KGW was an interested person under 11 U.S.C. § 101(14), is not clearly erroneous, per Bankruptcy Rule 8013.

A person with an interest materially adverse to the estate or its creditors is not a disinterested person.

Smith v. Marshall (In Re Hot Tin Roof, Inc.) · filed 1997-03-18(14)(E)

We believe that the Bankruptcy Court committed no error when it determined, as a matter of law, that Smith was not a disinterested person.

A professional with an unpaid prepetition claim against the debtor is not a disinterested person under § 101(14)(A).

In Re Howard Smith, Inc. · filed 1997-03-24(14)(A)

Gillispie has for some time been utilized by Debtor and has not waived its claim of $ 8,998.00 for pre-petition services. Therefore, contrary to the statement contained in the application for Gillispie’s employment filed by counsel for Debtor, there is no question that Gillispie is not a “disinterested person” within the meaning of 11 U.S.C. §§ 101(14) and 327(a).

Section 101(14) requires a disinterested person not to be a creditor, so an attorney owed fees for prepetition services cannot qualify.

In Re Printcrafters, Inc. · filed 1997-05-05(14)

The definition of disinterested person in 11 U.S.C. 101(14) specifically requires that the person not be a creditor. Thus, to be disinterested an attorney cannot be owed money by a debtor for prepetition services.

A professional who received potentially preferential payments from the debtor may have an interest materially adverse to the estate under § 101(14)(E).

In Re Florence Tanners, Inc. · filed 1997-06-03(14)(E)

As a result, Halbert might have an “interest materially adverse to the interests of the estate” under 11 U.S.C. § 101(14)(E), and was therefore required to disclose all such payments in his affidavit of disinterestedness.

Section 101(14)(E) defines a disinterested person as one without an interest materially adverse to the estate; temporarily holding a disputed check without claiming its proceeds does not make counsel interested.

In Re Mundo Custom Homes, Inc. · filed 1997-11-17(14)(E)

A “disinterested” person is one who “does not have an interest materially adverse to the interest of the estate,” 11 U.S.C. § 101(14)(E) (1997), and is free from “any scintilla of personal interest” which could affect his or her decisions involving the estate. ... Moreover, Rooks is a disinterested party. It has ceased representation of the Lawsons. There is no current conflict or economic interest which would affect Rooks’ decisions.

Section 101(14) excludes professionals with prepetition claims against the estate from the definition of “disinterested person” for general employment under § 327(a).

Buckley v. Transamerica Investment Corp. (In Re Southern Kitchens, Inc.) · filed 1998-02-26(14)

The definition of “disinterested person” under 11 U.S.C. § 101(14) bars professionals who hold prepetition claims against the estate from the generalized retention contemplated by § 327(a).

Section 101(14)(E) defines a disinterested person as one without an interest materially adverse to the estate or creditors because of a relationship with the debtor.

In Re Cleveland Trinidad Paving Co. · filed 1998-03-31(14)(E)

Under § 101(14)(E) of the Code, a disinterested person is one who ... “does not have an interest materially adverse to the interest of the estate or any class of creditors or equity security holders by reason of any direct or indirect relationship to, connection with, or interest in, the debtor...”. ... No evidence was demonstrated to establish any relationship which would point to an adverse interest or lack of disinterestedness respecting his appointment as counsel for the trustee.

Section 101(14)(E)’s definition of a disinterested person does not permit disqualifying trustee’s counsel based solely on an appearance of conflict.

In Re Marvel Entertainment Group, Inc. · filed 1998-03-25(14)(E)

The Firm does not have an actual or potential conflict of interest and may not be disqualified under 11 U.S.C. SS 327(a) and 101(14)(E).

Section 101(14)(e) defines a disinterested person by the absence of an interest materially adverse to the estate or creditors; payment by a debtor’s principal does not, by itself, disqualify counsel.

In Re Lar Dan Enterprises, Inc. · filed 1998-05-11(14)(e)

A disinterested person is one who “does not ... have any interest materially adverse to the interest of the estate or of any class of creditors ... by reason of any direct or indirect relationship to, connection with, or interest in, the debtor____” 11 U.S.C. § 101(14)(e) (West 1998). ... Finally, after reviewing Siller Wilk’s application and hearing argument, I am convinced that Siller Wilk is sufficiently disinterested to represent the Debtor for the narrow purpose of defending against WFP’s Lift-Stay Motion.

A creditor is not a disinterested person under § 101(14)(A).

Matter of Remmen · filed 1998-06-19(14)(A)

The definition of “disinterested person” in 11 U.S.C. § 101(14)(A) provides that a person is disinterested if that person is not a creditor, an equity security holder, or an insider. Because Mr. Heavey was a creditor, he was not disinterested.

Section 101(14)(E) excludes a professional with an interest materially adverse to the bankruptcy estate from the definition of a disinterested person.

Halbert v. Yousif · filed 1998-07-02(14)(E)

The Bankruptcy Court correctly determined that, as a result of receiving transfers of value from Tanners within the ninety-day preference period, Halbert became ineligible to serve as its attorney, at least in the absence of curative measures which did not occur here. ... Of particular concern under this disclosure duty has to be any “interest materially adverse to the interest of the estate,” which can disqualify a professional from employment.

Section 101(14)(D) treats a person who functioned as the debtor’s CFO within two years before filing as a non-disinterested officer, even without a formal board appointment.

Official Committee of Unsecured Creditors v. ABC Capital Markets Group (In Re Capitol Metals Co.) · filed 1998-12-16(14)(D)

A person is not disinterested if that person was a director, officer or employee of the debtor within two years of the date of filing the bankruptcy petition. 11 U.S.C. § 101(14)(D). ... Without such evidence, the Panel considers the person who functioned as the CFO to be the CFO, even without a corporate resolution to that effect. ... ABC failed to prove that it was disinterested, given the employment of Peterson and ABC as the Debtor’s CFO during 1996 and 1997.

Section 101(14)(E) requires trustee’s counsel to be disinterested toward a debtor; bias against the debtor can defeat that requirement.

In Re Vebeliunas · filed 1999-03-10(14)(E)

Graham is not disinterested as to Vebeliunas as Graham is required to be, either because Vebeliunas is potentially akin to the class of equity security holders under § 101(14)(E) or because Graham fails the disinterest test pursuant to a more expansive reading of that subsection’s last clause.

Section 101(14)(E) concerns materially adverse interests a professional personally has; representing someone else’s adverse interest does not by itself make the professional interested.

Bank Brussels Lambert v. Coan · filed 1999-05-18(14)(E)

Accordingly, to run afoul of section 101(14)(E), a professional personally must “have” the prohibited interest. At most, Caddell “represented” interests adverse to a class of AroChem creditors when it represented Wells in his Texas Action; because Caddell personally does not “have” such an adverse interest, it remains a “disinterested person” within the meaning of section 101(14)(E).

Section 101(14)(E) disqualifies a professional only if the professional personally has a materially adverse interest; representing a client with such an interest is insufficient.

In Re Arochem Corporation · filed 1999-05-18(14)(E)

Accordingly, to run afoul of section 101(14)(E), a professional personally must "have" the prohibited interest.

A creditor, equity security holder, or insider is not a disinterested person under § 101(14).

Curtis v. Kellogg & Andelson · filed 1999-07-12(14)

Under section 327(a), the trustee, with the court’s approval may employ persons “to represent or assist the trustee in carrying out the trustee’s duties” but the persons employed must be “attorneys, accountants, appraisers, auctioneers, or other professional persons, that do not hold or represent an interest adverse to the estate,” and be “disinterested” — that is “not a creditor, an equity security holder, or an insider[.]” (11 U.S.C. §§ 101(14), 327(a).) Clearly, Dr. Curtis does not fall within this definition.

Section 101(14)(E) defines a disinterested person to exclude someone with an interest materially adverse to the estate, including an economic interest that could diminish the estate or create a dispute with it, or a bias against it.

In Re Keller Financial Services of Florida, Inc. · filed 1999-09-01(14)(E)

Second, having an “interest materially adverse to the interest of the estate,” as that phrase is used in the definition of “disinterested person” contained in § 101(14), is interpreted broadly as: possessing, or serving as an attorney for a person possessing, either an “economic interest that would tend to lessen the value of the bankruptcy estate or that would create either an actual or potential dispute in-which the estate is a rival claimant ... or ... a predisposition under the circumstances that render such a bias against the estate.”

Section 101(14)(E) excludes an attorney with a materially adverse interest from the definition of a disinterested person.

In Re Keller Financial Services of Florida, Inc. · filed 2000-04-14(14)(E)

Even if the Respondents’ employment had' been approved under § 327, however, the claim for compensation for postpetition services should be denied pursuant to § 328(c) of the Bankruptcy Code, since the Respondents are not disinterested persons as defined in § 101(14).

Section 101(14)(A) excludes a creditor with a prepetition claim from the definition of a disinterested person, even when the claim arose from prior employment by the debtor.

In Re LKM Industries, Inc. · filed 2000-09-08(14)(A)

The definition excludes those who are creditors (§ 101(14)(A)). ... By virtue of the debt, Duchesneau is a creditor and therefore not a disinterested person.

Section 101(14) defines a disinterested person to include someone without an interest materially adverse to the estate; a trustee’s fee increasing when creditors are paid does not alone create such an interest.

In Re Drew · filed 2001-08-03(14)

A disinterested person includes a “person that does not have an interest materially adverse to the interest of the estate ... or for any other reason.” 11 U.S.C. § 101(14). ... In this case, Mr. Royal’s interest was aligned with the estate, not adverse. His objective was to disburse funds to the creditors. Of course disbursement to creditors enhances the trustee’s fee as Congress intended, but that in itself is not the representation of an adverse interest.

Section 101(14) excludes a creditor from the definition of a disinterested person.

In Re Midway Industrial Contractors, Inc. · filed 2001-10-11(14)

A “disinterested person” is defined in relevant part as a person that: “(A) is not a creditor, an equity security holder, or an insider; ... and (E) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor ... or for any other reason.” 11 U.S.C. § 101(14). ... On the Petition Date, Trittipo was a creditor of Midway with a claim arising from rendering services on behalf of Midway with respect to the Sverdup Lawsuit.

Section 101(14)(D) disqualifies a debtor’s former officer from being a disinterested person, but does not automatically disqualify the officer’s law firm.

Stanley v. Keravision, Inc. (In Re Keravision, Inc.) · filed 2002-01-18(14)(D)

The statute provides that a person who is an officer is disqualified; it does not provide further that the law firm in which the officer is a partner is also not disinterested.

Section 101(14)(E) does not make a law firm non-disinterested merely because it represents someone who may hold a materially adverse interest; the firm itself must hold such an interest.

In Re Huntco Inc. · filed 2002-05-15(14)(E)

Rather, a law firm is disinterested under § 101(14)(E) unless it personally holds a materially adverse interest to the estate, creditor or equity holders.

Section 101(14) excludes an estate creditor from the definition of a disinterested person.

In Re Pappas · filed 2002-05-07(14)

Because he is a creditor of the estate, Marshall (a) holds an interest adverse to the estate, and (b) is not “disinterested.” 11 U.S.C. § 101(14).

Section 101(14)(A) excludes creditors from the definition of a disinterested person.

Young v. Coleman (In Re Veterans Choice Mortgage, Inc.) · filed 2002-07-11(14)(A)

Under 11 U.S.C. § 101(14)(A), creditors cannot be disinterested persons... Because Klosinski is owed these fees, he is not disinterested under § 327(a).

Section 101(14)(E) requires a professional to be free of an interest materially adverse to any class of creditors to qualify as disinterested.

In Re Pillowtex · filed 2002-09-23(14)(E)

The second, contained in the definition of "disinterested person," requires that a professional be free of"an interest materially adverse to the interest of . . . any class of creditors." 11 U.S.C. S 101(14)(E). ... We hold that when there has been a facially plausible claim of a substantial preference, the district court and/or the bankruptcy court cannot avoid the clear mandate of the statute by the mere expedient of approving retention conditional on a later determination of the preference issue.

Section 101(14) defines “disinterested person,” a qualification the trustee’s special counsel must meet.

In Re Development Corp. of Plymouth, Inc. · filed 2002-10-01(14)

The Court further concludes that the firm qualifies as a “disinterested person” as that term is defined in 11 U.S.C. § 101(14).

A professional with a prepetition claim against the debtor is a creditor and therefore is not a disinterested person under § 101(14)(A).

In re Authorized Factory Service, Inc. · filed 2002-10-08(14)(A)

Among other things, a “disinterested person” must be a person that is not a creditor. 11 U.S.C. § 101(14)(A). ... Moody, who filed a proof of claim in this case, was a pre-petition creditor of debtor, which owed him approximately $3,000.00 for services he allegedly provided during the one-month period immediately preceding the filing of debtor’s chapter 11 petition.

An accounting firm with an economic interest adverse to the estate does not qualify as a disinterested person under § 101(14)(E).

In Re Sabre International, Inc. · filed 2003-02-18(14)(E)

The Court concludes that WKC holds an economic interest adverse to the bankruptcy estate of Sabre. The Court further decides that WKC does not meet the definition of a disinterested person in this case.

Section 101(14)’s definition of a disinterested person excludes a professional with an interest materially adverse to the bankruptcy estate.

In re National Century Financial Enterprises, Inc. · filed 2003-08-01(14)

In reviewing the Retention Application and the parties’ arguments, the Court cannot find that Gibbs & Bruns as a firm holds an interest adverse to the Debtors’ estates.

Section 101(14)(E) excludes a professional from the definition of a disinterested person when its relationship with another professional gives it an interest materially adverse to the estate.

In Re Greystone Holdings, L.L.C. · filed 2003-08-21(14)(E)

The relationship between DKW Law Group and DKW Value Recovery creates a disqualifying conflict. First, DEW Value Recovery is not a disinterested person under the catchall provision of § 101(14)(E). DKW Value Recovery has an interest materially adverse to the estate by reason of its relationship to DKW Law Group.

Section 101(14)(E) requires a disinterested person to lack an interest materially adverse to the estate or any class of equity security holders; prior representation of someone adverse to an individual alleged equity holder does not itself disqualify counsel.

In Re Campbell-Erskine Apothecary, Inc. · filed 2003-12-04(14)(E)

Even if it represented Mosse in this regard, the most that could be said is that Bernstein represented an entity other than debtor whose interest was adverse to the interest of Terry as an alleged equity security holder. Such a conflict, if one existed, would not require the disqualification of Bernstein as counsel to debtor in this case.

Section 101(14)(E) excludes a professional with an interest materially adverse to the estate from the definition of a disinterested person; conflict waivers do not eliminate that adversity.

In Re Git-N-Go, Inc. · filed 2004-02-18(14)(E)

A “disinterested person” is one that “does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the debtor, ... or for any other reason.” 11 U.S.C. § 101(14)(E). ... Thus, the Court finds that the written conflict waivers, while necessary in order to satisfy the rules of professional conduct, do not aid the cause of eliminating the adversity of interests between Hale-Halsell and the estate.