Tri-State Financial, LLC v. Lovald

Before RILEY, GRUENDER, and SHEPHERD, Circuit Judges.

These consolidated cases arise out of the 2003 bankruptcy filing by Tri-State Ethanol Company, LLC (TSE), the owner of an ethanol plant near Rosholt, South Dakota. Tri-State Financial, LLC (TSF) purchased the ethanol plant from the bankruptcy estate and appeals, asserting the bankruptcy court*fn1 (1) abused its discretion in denying TSF’s motion seeking the recusal of the bankruptcy judge; (2) erred in (a) approving a settlement negotiated by the bankruptcy trustee with an oversecured creditor contrary to TSF’s objection, and (b) in denying TSF a hearing regarding the settlement approval; and (3) exceeded its authority and abused its discretion in allowing Robert E. Hayes (Hayes), an attorney retained by the bankruptcy trustee, to collect his fees in full despite a conflict of interest arising from Hayes’s representation of both the trustee and an unsecured creditor.*fn2 The district court*fn3 affirmed the decisions of the bankruptcy court. We affirm.