Sorry for digging this subject up again but just saw Hugh's comments.  He
makes an interesting point:

I also think alerting the Trustee to the necessity of making payment for
these services [offsite storage] one of the key invoices that must be paid
or the entire survival of the remaining entity will be at risk.

I wonder if the Trustee would consider the storage provider to be a secured
creditor in this case?  Clearly they have possession of corporate assets
(although arguably a portion of those assets really belong to the client not
the law firm).  Can they liquidate those assets to offset any reduced
settlement for services rendered?  It's not like they're holding a bunch of
TVs!

The good news would be, if they are considered a secured creditor, they
would be much higher on the list of folks to get paid and would likely see a
higher percentage on the dollar of what is owed than an unsecured creditor
(depending on what chapter they filed, contract and bankrupcty law as well
as the ethical rules in the various jurisdictions in play, etc.)

 And, if so, is this a case where the often used nominal $1 valuation per
box would potentially come back to bite a vendor as it wouldn't provide much
financial relief and/or has the potential to skew settlement calculation?
And what about the ethical rules governing the disposition of client files
as well as privacy laws?

Any storage providers in Listland have experience here?

Fred!  Please come back and share what you can with the list - this is a
FASCINATING case!  (but unfortunately due to the economy, may not be all
that unique)

Julie


-- 
Julie J. Colgan, CRM

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