DISTRICT COURT CANCELLED SUBORDINATION OF CLAIMS OF THE DEBTOR'S LAWYER

The Arbitration Court of the Ural District considered the cassation appeal of the lawyer, whose claims were downgraded due to the affiliation with the debtor. The courts of the first instance and the courts of appeal came to such conclusions in connection with the provision of compensatory financing by the creditor to the debtor.

However, the district court found no grounds for this.

As part of the bankruptcy case of a legal entity, a claim to include the debt under a legal services agreement into the register of creditors’ claims was filed. The debtor fulfilled his obligations only partially, which prompted the creditor to act.

However, the judges of the first instance and the appellate instance established the affiliation of the parties, which led to a decrease in the priority of the creditor's claims.

This happened due to the fact that the lawyer, in the opinion of the judges, having information about the difficult financial situation of the debtor, nevertheless entered into an additional agreement with him for the provision of services, and subsequently did not demand the collection of the amount due to him for a long time.

But the district court saw no grounds for subordination in such actions.

The three judges noted that the involvement of a lawyer in the debtor's affairs could not indicate that the lawyer was interested in the debtor's financial state.

Despite the fact that the joint actions of the debtor and the lawyer may be similar, the motives for these actions are significantly different.

The debtor pursues his interest in the protection of his own rights and freedoms, while the lawyer is interested in high-quality and qualified provision of legal assistance.

As a result, the decisions of the lower courts were canceled, and the lawyer's claims were included in the third stage of the register of creditors’ claims (decision No. F09-3288 / 20 of April 27, 2021).