Judges’ Salaries, Other Aspects of U.S. Bankruptcy Law Must Be Overhauled

In the July 26 article, “Bankruptcy: A System Under Stress,� Times staff writer Michael A. Hiltzik singled out the compensation of bankruptcy judges as a factor in their high turnover rate. He also cited the use of judgeships as a “training ground� for young professionals prior to their entry into the higher-paying private sector. The effect of the salary differential between bankruptcy judges and federal district judges is far more detrimental than is apparent on the surface.

The most obvious detrimental effect is on the competence of the bench. This is not to say that the bankruptcy judges are in any way incapable of performing their duties; on the contrary, they are a scholarly, prudent and highly intelligent collection of men and women. Nevertheless, an important component of competence is experience, and if bankruptcy judges lack a sufficient economic incentive to remain on the bench, then the entire system is deprived of this valuable asset. When the salary of the judiciary is so substandard that the system has a 72% turnover rate over a five-year period and a first-year associate at a top New York law firm with two years’ experience as a law clerk in federal court can command a higher salary than the judges themselves, then the compensation package for these dedicated civil servants deserves reconsideration.

A more subtle detrimental effect is the demoralization of the current bankruptcy judges. These individuals possess the highest level of knowledge and expertise in their field. The number of cases and the complex litigation before the bankruptcy court assures long hours of difficult work for the judges. We know because we see them in the courthouse workdays, weekends and holidays. We see the briefcases full of work they take home at night. They work vigilantly and constantly to execute the duties of their office. It is an unnecessary slight to ask them to work for a mere 60% of the salary of their federal district court counterparts.

Instead of maintaining such a large salary differential between bankruptcy judges and district court judges, it seems to be a fairer solution to make the distinction symbolic rather than punitive. If bankruptcy judges were paid the same salary as district court judges--less $1--then the symbolic goal would be met, current bankruptcy judges would be fairly compensated for their skill and expertise, and there would be a sufficient economic incentive to attract talented new judges to the bench as a career instead of a steppingstone. The result would unquestionably be an improved forum for one of America’s most pressing and problematic judicial arenas.

G. BRYAN BRANNAN

Law Clerk to U.S. Bankruptcy Judge Barry Russell

DANIEL LEV

Law Clerk to U.S. Bankruptcy Judge Geraldine Mund