Dunkin's Diamonds, Inc.

420 B.R. 883, 22 Fla. L. Weekly Fed. B 247, 2009 Bankr. LEXIS 4330
Procedural entryThis page is a short order in Dunkin's Diamonds, Inc.. Read the opinion of the Court — 420 B.R. 889
United States Bankruptcy Court, M.D. Florida·Decided December 15, 2009·No. Nos. 9:08-bk-17618-ALP, 9:08-bk-17613-ALP, 9:08-bk-17614-ALP, 9:08-bk-17615-ALP, 9:08-bk-17616-ALP, 9:08-bk-17617-ALP·Published

Opinion

FINAL ORDER ON APPLICATIONS FOR COMPENSATION AND REIMBURSEMENT OF EXPENSES OF PAUL BATTISTA, ESQ., OF THE LAW FIRM GENOVESE, JOBLOVE & BATTISTA, P.A., LOCAL CO-COUNSEL TO THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS (Doc. Nos. 294 & 338) AND THE AMENDED OBJECTION TO SAME BY THE UNITED STATES TRUSTEE (Doc. No. 380) AND THE DEBTORS’ PRINCIPAL, STUART DUNKIN (Doc. No. 353)

ALEXANDER L. PASKAY, Bankruptcy Judge.

THIS IS a confirmed Chapter 11 set of jointly administered cases and the matters under consideration by the Court in this instant final order are the applications for compensation and reimbursement of expenses of Paul Battista, Esq., of the law firm Genovese, Joblove & Battista, P.A., local counsel of record for the Official Committee of Unsecured Creditors in the above captioned jointly administered chapter 11 cases. (Doc. Nos. 243, 281, and 310). Also considered were this Court’s interim and prior orders on compensation to Mr. Battista, (Doc. Nos. 294 and 338), together with the amended objection to compensation filed by the United States Trustee for Region 21, (Doc. No. 380 amending 359), and the motion to alter or amend the prior orders of compensation filed by the Debtors’ principal Mr. Stuart Dunkin. (Doc. No. 353). Upon conclusion of the hearing conducted on September 1, 2009, this Court took the matters under advisement, and now finds and concludes the following.

Statement of the Case

On November 6, 2008, the debtors filed petitions under Chapter 11 of Title 11, United States Code. This Court subsequently ordered that the chapter 11 cases to be jointly administered, and on August 5, 2009, a Joint Plan of Reorganization was confirmed.

With regards to the Compensation Applications of Mr. Battista, this Court approved his employment as local counsel for the Official Unsecured Creditors Committee, on December 27, 2009, retroactive to November 24, 2008. Mr. Battista has filed an interim fee application and two supplemental seeking compensation of fees in the amount of $74,282.50 and reimbursement of expenses of $543.50.

Jurisdiction

The applications and objections filed against them and the compensation orders all constitute a contested matter and are a core proceeding under 28 U.S.C. § 157(b)(2)(A), (B), and (O); 11 U.S.C. §§ 330 and 331; Fed. R. Bankr.P.2016, 9013, and 9014. This Court has jurisdiction to hear, determine, and enter appropriate orders under 28 U.S.C. §§ 157, 1334.

Discussion

A review of professional fees begins with the statutory framework set out [886]*886in 11 U.S.C. §§ 327-330. See Miller Buckfire & Co., LLC v. Citation Corp. (In re Citation Corp.), 493 F.3d 1313, 1318 (11th Cir.2007). Mr. Battista was employed under Section 1103(a) which authorizes the Committee to employ professionals, with this Court’s approval, “to represent or perform services for such committee.” Just because Mr. Battista was employed by the Committee does not change the statutory standard for review of professional fees.

It is uniformly recognized in the Eleventh Circuit, that the starting point for calculating reasonable attorney’s fees is that of the lodestar method. See Citation, 493 F.3d at 1318; Grant v. George Schunmann Tire & Battery Co., 908 F.2d 874, 878 (11th Cir.1990); Norman v. Housing Authority of Montgomery, 836 F.2d 1292, 1299 (11th Cir.1988). Johnson v. Georgia Highway Express, Inc., 488 F.2d 714 (5th Cir.1974). Simply put, the “lodestar method,” is a computation of the reasonable time expended by counsel in performing the reasonably required services rendered multiplied by a reasonable hourly rate.

Neither at the application to employ Mr. Battista nor at his application for compensation, has any party in interest objected to Mr. Battista’s hourly rate or the hourly rates of those in his firm. By his verified statement under Rule 2014, Mr. Battista’s hourly rate is $500 and the hourly rate for the primary associate in his firm that billed time in this case, Ms. Heather Harmon, is $310. These rates do appear to be on par with rates charged in the Southern District of Florida, Miami, where Mr. Bat-tista customarily practices. Without objection, this Court finds under the facts and circumstances of this case that Mr. Battista’s hourly rates charged by his firm in this case are reasonable.

Procedurally, Mr. Battista, has not filed a Final Fee Application. Rather, Mr. Battista filed his First Interim Application, (Doc. No. 243), on May 15, 2009. That application was supplemented, (Doc. No. 281), on June 16, 2009. Right on its heels Mr. Battista filed a Second Supplemental Application, (Doc. No. 310), on June 30, 2009. The U.S. Trustee objected to the timing of these multiple interim fee applications. In accordance with Section 331, interim compensation may not be awarded more than once every 120 days. “Section 331 is intended to alleviate the unwarranted financial burden on professionals that occurs when judicial scrutiny, allowance, and payment of fees applications is withheld until the conclusion of the case, as contemplated by Section 330.” In re Commercial Financial Services, Inc., 231 B.R. 351, 354 (Bankr.N.D.Okla.1999). Section 331 does permit, upon finding of cause by the Court, for a reduction of the time period of 120 days. This requires a finding by the Court on a case by case basis. The case does not raise unusual circumstances warranting more frequent applications, and professionals did not seek permission by this Court under Section 331 to submit compensation applications on a more frequent basis.

In resolution of the U.S. Trustee’s objection to the timing of Mr. Battista’s compensation applications, the U.S. Trustee and Mr. Battista arrived at a consensus to treat them all together as a final fee application governed by Section 330(a), title 11, United States Code. One reason for obtaining this consensus is that the Applicant, Mr. Battista, agreed and stipulated on the record to not seek further professional fees for services provided to the Official Committee after June 30, 2009. This Court does find after a review of the [887]*887court record in this case that Mr. Battista, or members of his firm, were in attendance at hearings before this Court after July 1, 2009. The concession made by Mr. Battis-ta with regards to his post July 1, 2009 services, together with treating all of the compensation applications as a final application under Section 330, appear reasonable under the circumstances of this case. This Court thereby finds and concludes that Mr.

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Dunkin's Diamonds, Inc., 420 B.R. 883, 22 Fla. L. Weekly Fed. B 247, 2009 Bankr. LEXIS 4330 (Fla. 2009).

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