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BAKER BOTTS L. L. P. v. ASARCO LLC

Opinion of the Court

Justice Thomas delivered the opinion of the Court.

Section 327(a) of the Bankruptcy Code allows bankruptcy trustees to hire attorneys, accountants, and other professionals to assist them in carrying out their statutory duties. 11 U. S. C. §327(a). Another provision, §330(a)(1), states that a bankruptcy court “may award … reasonable compensation for actual, necessary services rendered by” those professionals. The question before us is whether §330(a)(1) permits a bankruptcy court to award attorney’s fees for work performed in defending a fee application in court. We hold that it does not and therefore affirm the judgment of the Court of Appeals.

I

In 2005, respondent ASARCO LLC, a copper mining, smelting, and refining company, found itself in financial trouble. Faced with falling copper prices, debt, cashflow deficiencies, environmental liabilities, and a striking work force, ASARCO fled for Chapter 11 bankruptcy. As in many Chapter 11 bankruptcies, no trustee was appointed and ASARCO—the “ ‘debtor in possession’ ”—administered the bankruptcy estate as a fiduciary for the estate’s creditors. §§1101(1), 1107(a).

Relying on §327(a) of the Bankruptcy Code, which permits trustees to employ attorneys and other professionals to assist them in their duties, ASARCO obtained the Bankruptcy Court’s permission to hire two law firms, petitioners Baker Botts L. L. P. and Jordan, Hyden, Womble, Culbreth & Holzer, P. C., to provide legal representation during the bankruptcy.[1] Among other services, the firms prosecuted fraudulent-transfer claims against ASARCO’s parent company and ultimately obtained a judgment against it worth between $7 and $10 billion. This judgment contributed to a


  1. Although §327(a) directly applies only to trustees, §1107(a) gives Chapter 11 debtors in possession the same authority as trustees to retain §327(a) professionals. For the sake of simplicity, we refer to §327(a) alone throughout this opinion.