Aachwen Environmental, Inc.

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UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re
AACHWEN ENVIRONMENTAL, INC., No. 05-35186
Debtor(s).
______________________________________/
Memorandum on Sua Sponte Reconsideration
_________________
In this matter, the United States Trustee had prayed for two items of relief in her motion to
recover the retainer paid to attorney Nathan Paco so that the debtor can retain new counsel. First, the
UST prayed for an order that Paco disgorge the retainer; second, she prayed for an order suspending
Paco from practice until the retainer is disgorged.
At the hearing, the court indicated that only a disgorgement order was necessary at this time, with
contempt proceedings to follow if Paco failed to disgorge. However, the court now recalls that Paco has
in the past resorted to filing his own bankruptcy proceedings in order to thwart enforcement of the
court’s orders. While contempt proceedings are not stayed by a bankruptcy (In re Berg, 230 F.3d 1165,
1167 (9th Cir.2000)), the court upon reconsideration thinks it prudent to fully grant the UST’s motion at
this time.
Dated: April 14, 2006
SAlan Jaroslovsky
U.S. Bankruptcy Judge
Entered on Docket
April 14, 2006
GLORIA L. FRANKLIN, CLERK
U.S BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
Case: 05-35186 Doc# 42 Filed: 04/14/06 Entered: 04/14/06 19:36:56 Page 1 of 1