In re: Richard N. Berkshire

CourtUnited States Bankruptcy Court, D. Nebraska
DecidedMarch 4, 2026
Docket25-80366
StatusUnknown

This text of In re: Richard N. Berkshire (In re: Richard N. Berkshire) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Nebraska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re: Richard N. Berkshire, (Neb. 2026).

Opinion

IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF NEBRASKA

In re: ) Case No. BK25-80366 ) RICHARD N. BERKSHIRE, ) ) Chapter 11 Debtor. ) ) )

Order Requiring Disgorgement of Attorney Fees THIS MATTER is before the court on the motion filed by the U.S. Trustee to examine the attorney’s fees of the debtor’s counsel, James Bachman. Amy Blackburn appeared for the U.S. Trustee. Mr. Bachman appeared for himself. The matter was submitted on affidavit and documentary evidence.1 The motion is granted in part. Mr. Bachman must disgorge all post-petition fees he was paid, along with any pre-petition retainers. The post-petition fees were not authorized or approved. Also, the amount the debtor paid Mr. Bachman exceeds the reasonable value of the services. Mr. Bachman must also account to the U.S. Trustee, the Chapter 7 trustee, and the court as stated in this order. Findings of Fact The debtor, Richard Berkshire, filed his Chapter 11 bankruptcy case on April 18, 2025. The bankruptcy case was precipitated by two pieces of litigation. Approximately one year before the filing, the debtor’s sisters obtained a $2,666,767.74 judgment against the debtor on account of multiple and repeated breaches of fiduciary duties the debtor owed a partnership. Approximately two months before the filing, the debtor defended litigation in state probate court regarding alleged breaches of fiduciary duties owed to his sisters and his mother regarding a trust. The debtor retained Mr. Bachman to represent him in the Chapter 11 bankruptcy case. After filing the bankruptcy, Mr. Bachman filed an application seeking his own

1 Both parties were offered an evidentiary hearing with live witness testimony. Both declined the invitation, requesting the matter be resolved on affidavit and documentary evidence. The following evidence is received: Doc. #1, Doc. #10, Doc. #12, Doc. #17, Doc. #21, Doc. #31, Doc. #39, Doc. #43, Doc. #53, Doc. #84, Doc. #151, Doc. #179, Doc. #210, Doc. #212, Doc. #217, Doc. #279, Doc. #279-3, Doc. #279-4, Doc. #279-5, Doc. #296 through #313, Doc. #359, Doc. #376 ¶ 35-36, Doc. #376-3, -4, -5, -6, -7, Doc. #463, Doc. #483 (Lauren Goodman’s testimony), Doc. #508, and Doc. #526. employment. In the application Mr. Bachman represented he had “no connection with any of the creditors of the Debtor”. Mr. Bachman’s employment was approved. Mr. Bachman represented the bankruptcy estate for only 80 days. On July 7, 2025, the debtor was removed as a debtor in possession for cause. A Chapter 11 trustee was appointed. Cause for removal included the multiple breaches of fiduciary duty with respect to the partnership, and the debtor’s inappropriate conduct in the bankruptcy case. Because the case was a liquidation case with no ability to reorganize, the case was converted to a Chapter 7 case on February 6, 2026, and the Chapter 11 trustee was appointed Chapter 7 trustee. As attorney for the debtor and bankruptcy estate, Mr. Bachman had to disclose certain compensation he received before the bankruptcy was filed. The disclosure mechanism is Bankruptcy Form 2030 - Disclosure of Compensation of Attorney for Debtor. In part, the form requires the attorney state compensation received “in contemplation of or in connection with the bankruptcy case” within one year of filing the bankruptcy case. Mr. Bachman did not file Form B2030. He did not disclose any compensation. The debtor, however, disclosed one payment to Mr. Bachman on his Statement of Financial Affairs (“SOFA”). In response to the question, “Within 1 year before you filed for bankruptcy, did you or anyone else acting on your behalf pay or transfer any property to anyone you consulted about seeking bankruptcy or preparing a bankruptcy petition?” The debtor disclosed a $7,500 payment to Mr. Bachman paid on March 1, 2025. The description of the payment on the SOFA is “Cash – attorney retainer”. The U.S. Trustee reviewed bank statements the debtor produced in the bankruptcy case. The bank statements showed additional payments the debtor paid Mr. Bachman. Between December 2024 through August 2025, the debtor paid Mr. Bachman $79,500 through eight separate checks. Pre-petition payments to Mr. Bachman totaled $63,500. One of the pre-petition payments, check 5226, is in the amount of $7,500. The memo line of the check states “Bankrupt Fees”. The check cleared the debtor’s bank account on April 1, 2025.2 The remaining pre-petition payments to Mr. Bachman total $56,000. They were not disclosed on the SOFA. Regarding the non-disclosure, Mr. Bachman asserts the debtor retained him in 2024 as an expert witness and “consultant” in the probate litigation. The payments began in December 2024 and concluded in February 2025,

2 Check 5226 does not appear to be the March 1, 2025 “Cash – attorney retainer”. Check 5226 is not a “Cash” payment. And the debtor’s bank statements evidence significant cash withdrawals. If we assume check 5226 was the March 1 payment, it took one month to clear the debtor’s bank account. The delay is not characteristic of any other payment to Mr. Bachman. Of the eight checks to Mr. Bachman, five cleared the debtor’s bank account within one day, one cleared within two days, and one cleared within four days. when the probate case was being tried.3 The U.S. Trustee requested Mr. Bachman’s billing statements regarding the probate matter. Mr. Bachman initially refused to produce them. After an initial hearing, he produced what he calls “a copy of my billing statement which was taken from my billing statements I sent to my client.” The billing statement details $64,785 in charges from December 3, 2024, through March 21, 2025. The veracity of the billing statement was questioned in an affidavit filed by counsel for the debtor’s sisters who tried the probate case. Mr. Bachman billed the debtor monthly at the end of each month. Yet the billing statement Mr. Bachman submitted to the court is dated February 9, 2026. The billing statement includes line items for four days attending trial. Likewise, in an affidavit dated January 7, 2026, Mr. Bachman asserts he spent a “great deal of time” on the probate litigation, “including attending a trial for four days.” But according to the probate court records, the trial lasted only two days. Also, the billing entries on the statement appear to be attorney services, not the services of an expert witness or “consultant.” Finally, the debtor’s check payments do not match the amounts Mr. Bachman purportedly invoiced the debtor for the prior month. Mr. Bachman filed a supplemental affidavit responding to the issues raised by counsel for the debtor’s sisters. He explained the billing statement was not completely based on or taken from Mr. Bachman’s actual billing statements to the debtor. Mr. Bachman changed his billing system in January 2026. His computer crashed on January 15, 2026. His new system did not have an automatic backup. His January 2025 invoice to the debtor was lost.4 Mr. Bachman “reconstructed” the billing entries on the billing statement for January 2, 20, 22, and 24, 2025 from “handwritten notes”. The other January entries were “from memory”. Mr. Bachman “was able to calculate the amount of time by determining the difference between the total amount billed and the other monthly totals.”5 The amounts the debtor paid each month differed from Mr. Bachman’s actual invoices because the debtor paid in advance for “additional work”.

3 The payments included Check 5206, dated December 9, 2024, for $6,000, Check 5207 dated January 6, 2025, for $5,000, Check 5209 dated January 10, 2025, for $15,000, Check 5216 for $10,000 dated February 14, 2025, and Check 5219 dated February 27, for $20,000. 4 Mr. Bachman has not produced actual copies of the other monthly invoices which were not lost. 5 Mr.

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Bluebook (online)
In re: Richard N. Berkshire, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-richard-n-berkshire-nebraskab-2026.