The moving party sought enforcement of a settlement agreement requiring the bankruptcy trustee to pay $300,000 toward a previously awarded costs order.
The trustee argued the bankruptcy estate lacked sufficient funds and that payment would prejudice its ability to pay its own fees and ongoing litigation costs.
The court interpreted the settlement memorandum and held that the first $300,000 of the moving party’s costs were expressly not subordinated to the trustee’s fees and expenses.
The trustee’s failure to reserve those funds could not defeat the contractual arrangement.
The court ordered payment of $300,000 in trust to counsel holding a solicitor’s lien, with no costs of the motion.
