IN RE: GREENPOINT TACTICAL INCOME FUND LLC Debtor. BALLARD SPAHR LLP v. OFFICIAL COMMITTEE OF EQUITY SECURITY HOLDERS
The Seventh Circuit affirmed that an investment fund debtor is not liable for legal fees incurred by its managing member when engagement letters explicitly identified the individual as the client. The court held that without a signed writing or clear contractual obligation, the bankruptcy estate cannot be charged for the manager's personal legal debts.