A creditor in Zucker Goldberg & Ackerman LLC’s Chapter 11 case asked a bankruptcy judge Thursday to reject the foreclosure law firm’s choice of Connell Foley LLP as special counsel because it is named as a creditor, although Zucker Goldberg quickly denied there was a conflict of interest.
In her objection, creditor Carolyn Bailey asked U.S. Bankruptcy Judge Christine M. Gravell to dismiss Connell Foley, to obtain a new status list of potential claims and to demand Zucker Goldberg’s proof of payment for its malpractice insurance.
Bailey pointed to a list of creditors holding secured claims filed by Zucker Goldberg in September 2015 that said Connell Foley was owed $45,844, as well as a proof of claim from later that year indicating the New Jersey-based law firm was owed $23,406.
The unsecured creditors committee is represented by David J. Adler of McCarter & English LLP.