The following excerpt is from Holiday Mobile Home Resorts, Matter of, 803 F.2d 977 (9th Cir. 1986):
We have held that when state law and not federal bankruptcy law provides the rule of decision in a contested matter, the bankruptcy court will award fees to the same extent allowed under the governing state law. See Merced Production Credit Association v. Sparkman (In re Sparkman), 703 F.2d 1097, 1099-100 (9th Cir.1983). Even though the bankruptcy court did not find any Bankruptcy Code provision authorizing the award of fees, the court should have awarded fees if an Arizona court would have awarded fees in an action barred by res judicata raising the same issues present in the motion to reopen.
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.