Baker Botts suffered a $7 million defeat in June, when the U.S. Supreme Court denied its bid to recoup litigation costs incurred at the end of Asarco LLC’s decade-long bankruptcy. A recent court filing shows the loss has apparently inspired the firm to overhaul how it structures its bankruptcy fees.
Baker Botts proposed the modified fee structure in an application to serve as lead debtor’s counsel for energy company New Gulf Resources LLC, which filed a Chapter 11 petition in Delaware on Dec. 17. The application details a conditional premium fee that would be triggered if a reorganized, post-bankruptcy New Gulf decides to challenge Baker Botts’ baseline rates. The firm appears to be seeking to cover its financial bases, while also respecting the Supreme Court’s June 15 ruling in Baker Botts v. Asarco.
