R-E-S-P-E-C-T or Mr. Smith Goes to McDonald's

05/30/07

Last week, an incident was reported in Above the Law, that most entertaining blawg which calls itself “A Legal Tabloid.” William P. Smith, head of the bankruptcy department at the huge international firm of McDermott, Will & Emery, appeared before Bankruptcy Judge Laurel Isicoff of the Southern District of Florida. Judge Isicoff appears to be newly appointed, but a veteran of 20 years of sophisticated insolvency practice. In arguing whether a transaction in escrow would probably close, Smith told Judge Isicoff: “I suggest to you with respect, your honor, that you’re a few french fries short of a happy meal in terms of what’s likely to take place.”

With respect????

In my experience, United States Bankruptcy Judges seem to get less respect from the bar than a United States District Judge receives. If this is true, why should it be? Is it that their courtrooms are smaller and less impressive? Is the standard of practice at the bar lower in the Bankruptcy Court than in the District Court? Is it that bankruptcy lawyers are likely to have appeared before the same judge many times, and may even have known the judge before his or her appointment? In other words, might familiarity breed contempt? Is it because a Bankruptcy Judge may appear to the world not as an enforcer of promises and dispenser of justice but as the facilitator of broken promises? Is it that because so many decisions of the Bankruptcy Judges are discretionary, they are seen as making arbitrary rulings?

In any case, Smith will get a chance to explain himself on June 25, at the hearing on the Order to Show Cause why he shouldn’t be suspended from practice before the United States Bankruptcy Court, Southern District of Florida. I’m sure that he’ll say that he did not intend to disparage the judge. However, I suspect that if Smith had held in his heart true respect for the institution of the Court (or perhaps just an ounce of humility) he wouldn’t have said what he did.

Maybe Smith will be suspended down in Florida, or (more likely, I would guess) his apology will suffice. In any case, the blawgs have already held him and his firm up to worldwide ridicule. I would be lying if I said it didn’t brighten my day – in a sort of a dismayed “what is the world coming to” kind of way, of course.

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