Velazquez, et al. v. Countrywide Home Loans, No. 10-20609 (5th Cir. 2011)Annotate this Case
In the Chapter 13 case of appellees, Countrywide sought the recovery of attorney's fees incurred in connection with the bankruptcy as well as a determination that compliance with Federal Bankruptcy Procedure 2016 was not necessary for the recovery of such fees. The bankruptcy court held that Countrywide was not entitled to recover its attorney's fees and determined that there was no justiciable issue to resolve regarding the applicability of Bankruptcy Rule 2016 because Countrywide had already complied with the rule. The district court affirmed. The court held that the bankruptcy court and district court misconstrued the provision of the contract governing the availability of attorney's fees and that Countrywide was entitled to recover the fees sought in its Fee Application. Like the bankruptcy and district courts, however, the court declined to address whether Bankruptcy Rule 2016 applied. Accordingly, the court reversed and remanded for further proceedings.