The Chapter 11 Bankruptcy Case of One Question Too Many
There comes a time in every case when the bankruptcy lawyer needs to shut up and sit down, especially if the lawyer is not absolutely certain what the response of the witness will be. The following is funny as well as a perfect example of how a case can be lost because of one last question that a lawyer in Bankruptcy Court felt compelled to ask.
I had filed a Chapter 11 bankruptcy for a neurosurgeon. This particular doctor marched to his own drummer and handled his practice differently than most physicians. For example, he did not use a billing service but rather handled his own billing and was not particularly aggressive in collecting his fees. In fact, he handled most of his practice in an informal and relaxed manner. The foregoing facts caused one of his major creditors a great deal of concern. This creditor believed the doctor’s income would be dramatically increased if the business end of his practice were handled in a more business like fashion. This creditor as a result hired an attorney for the purpose of urging the Judge to appoint a Chapter 11 Trustee to run the business end of the neurosurgeon's practice.
At the Hearing to have a Trustee appointed, the attorney for the creditor aggressively questioned the Doctor about his methods of handling his business records, collections and a whole host of related questions. After nearly four hours the creditor’s lawyer concluded his questioning, but as he was returning to his seat he turned back to the Doctor and said he had one more question, “Doctor, you do not even get basic information from your patient when you first see him/her, isn’t that true? The Doctor's response was both brilliant and funny. So funny that the Bankruptcy Judge and everyone sitting in the courtroom laughed. The Doctor's response was:
”I doubt that you understand how my practice works or you wouldn't have asked this question. The fact is the majority of my patients are unconscious when I first see them and it would be impossible for me to ask them anything at all."
Needless to say the Bankruptcy Judge denied the Motion to have a Trustee appointed.