Updating an earlier post (here) on Anthony Levandowski's request for bankruptcy court approval to retain special criminal counsel in his chapter 11 bankruptcy case, it appears that U.S. Bankruptcy Judge Hannah L. Blumenstiel approved the retention but not before the request was modified following objections from the United States Trustee and Google - Levandowski's former employer from whom the debtor was convicted of stealing trade secrets. Prior to the May 21 hearing on the application, Levandwoski withdraw the request to retain special criminal counsel to represent both himself personally and as debtor in possession because, according to pleadings, the law is unclear whether counsel could be retained to represent the debtor in possession. The application was modified to reflect a request only that special criminal counsel be permitted to continue to represent Levandowski personally.
According to the docket in In re Anthony Scott Levandowski, Case No. 3:20-bk-30242 (Bankr. N.D. Cal), the application was approved "for the reason stated on the record" of the hearing on May 21. The United States Trustee had opposed special criminal counsel's retention on a number of grounds related to the proposed fee arrangement and pending a showing that counsel's retention would benefit the estate. The debtor argued that criminal counsel's retention benefitted the estate because a plea agreement negotiated with the U.S. Attorney's Office capped the amount of restitution in the criminal case and counsel's efforts to limit the debtor's exposure to a long prison term would leave the debtor at liberty to work and earn funds that would be property of the estate.
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