Emory Bankruptcy Developments Journal


When confronted with a misbehaving chapter 11 committee, bankruptcy courts have a limited list of remedies available to preserve equity. Universally, courts may address committee misbehavior through the disallowance of the committee's attorneys' fees, or through a modification of the committee's membership. Where these remedies are inadequate, a split has emerged amongst the courts as to whether bankruptcy judges have the authority to use the 'judicial hammer' of disbanding a misbehaving committee. Looking to the history of chapter 11 committees and present-day examples of committee misbehavior, the author argues that when a committee is engaged in severe misfeasance or malfeasance, bankruptcy judges must have the power to disband the committee.