By Becky Yerak

Gellert Scali Busenkell & Brown LLC was denied a request by a judge in the Medley LLC bankruptcy to have roughly $37,000 in legal bills treated as a high-ranking claim in the chapter 11 case.

Judge Karen Owens sided with a federal bankruptcy watchdog who said the firm's client didn't make a substantial contribution to the case and therefore its bills shouldn't be considered a high-ranking administrative expense.

The judge said she didn't want to make light of the work, but said that through developments in the case it didn't amount to a substantial contribution in getting the plan approved.

Write to Becky Yerak at becky.yerak@wsj.com