Baker Botts acted in the Chapter 11 proceedings of Asarco, a mining and smelting subsidiary of Grupo Mexico between 2005 and 2009 when it emerged from the bankruptcy. The US$5.2 fees are on top of the basic fees of $113m which it charged over the bankruptcy. This extra sum relates to fees incurred in seeking to persuade other courts that it should be paid an additional sum of $22m in 'fee enhancements'. A fee enhancement would usually be payable only if a law firm does an exceptional job in acting for its client. 

Historic win

In this case, Baker Botts argues that it did an extraordinary job by taking and winning the largest 'fraudulent transfer' case in Chapter 11 history against Grupo Mexico which was held to have fraudulently moved assets that belonged to Asarco out of reach of the company. The sum awarded through the fraudulent transfer case was $7b. As a result, all of Asarco's creditors were paid in full. The bankruptcy judge partially accepted the Baker Botts argument and awarded it $4m in fee enhancements. However, Asarco disputed that outcome - and Baker Botts calculates that it has spent $5.2m defending its fee request. Since then, different courts have taken different views. The Supreme Court agreed in October to hear the case. 

Fully paid

Aaron Street, the Baker Botts lawyer, representing the firm at the Supreme Court, said that a victory for the firm would 'ensure that professionals who represent bankrupt companies are going to get fully paid, so long as they can successfully defend their fee application'. Source: Washington Post