In re Beale

553 B.R. 69, 2016 Bankr. LEXIS 2263, 2016 WL 3362542
CourtUnited States Bankruptcy Court, E.D. Virginia
DecidedJune 10, 2016
DocketCase No. 15-50286-SCS
StatusPublished
Cited by2 cases

This text of 553 B.R. 69 (In re Beale) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Beale, 553 B.R. 69, 2016 Bankr. LEXIS 2263, 2016 WL 3362542 (Va. 2016).

Opinion

MEMORANDUM OPINION

FRANK J. SANTORO, United States Bankruptcy Judge

This matter comes before the Court on the Order,-entered on July 14, 2015, suspending the application of subsections (C)(1)(a) and (C)(3)(a) of Local Bankruptcy Rule 2016-1,1 which establish a presumptively reasonable attorney fee for Chapter 13 cases, as to Jessica R. Casey (“Ms. Casey”), counsel for Robert Lee Beale in the above-captioned case (the “Suspension Order”). Ms. Casey filed a request for hearing with respect to the Suspension Order on July 24, 2015, in accordance with Local Bankruptcy Rule 2016-l(C)(3)(a)(v), which permits counsel to request a hearing within fourteen days of the Court’s ruling. The Court convened the requested hearing on September 11, 2015, and considered evidence and argument presented by Ms. Casey, on which basis she requested the Court reconsider its decision to suspend the application of subsections (C)(1)(a) and (C)(3)(a) of Local Bankruptcy Rule 2016-1 in this case. The Court continued the matter to September 25, 2015, at which time the Court heard further argument from Ms. Casey.

The Court has jurisdiction over this proceeding pursuant to 28 U.S.C. §§ 157(b) and 1334(b). Venue is proper pursuant to 28 U.S.C. §§ 1408 and 1409(a). This Memorandum Opinion constitutes the findings of fact and conclusions of law of this Court pursuant to Federal Rule of Civil Procedure 52, as incorporated into the Federal Rules of Bankruptcy Procedure by Rule 7052.

For the reasons stated below, the Court concludes that the suspension of the application of subsections (C)(1)(a) and (C)(3)(a) of Local Bankruptcy Rule 2016-1 shall remain in effect as to Ms. Casey in this case.

I, Procedural History

Robert Lee Beale (the “Debtor”) filed a voluntary petition under Chapter 13 of Ti-[71]*71tie 11 on March 11, 2015. Michael P. Cotter was appointed as Chapter 13 trustee (the “Chapter 13 Trustee”). The Debtor did not file any bankruptcy schedules or statements or a Chapter 13 plan at the time of the filing of his Chapter 13 petition. On March 25, 2015, the date the Debtor’s bankruptcy schedules and statements and Chapter 13 plan were due, the Debtor filed a motion to extend time to file the required documents (the “Motion to Extend Time”). The Court granted the Motion to Extend Time by order entered March 26, 2015, affording the Debtor until April 1, 2015, to file schedules and statements and until April 8, 2015, to file a Chapter 13 plan. Shortly thereafter, on March 31, 2015, Ms. Casey filed a notice of appearance on behalf of the Debtor. On the same date, the Debtor, through counsel, filed an amended petition, schedules, and Chapter 13 plan. Included among the Debtor’s schedules and statements was the Disclosure of Compensation of Attorney for Debtor, filed pursuant to 11 U.S.C. § 329(a) and Federal Rule of Bankruptcy Procedure 2016(b) (the “Disclosure of Compensation”). The Disclosure of Compensation indicated that Ms. Casey agreed to accept $5,000.00 in exchange for representation of the Debtor in this case and had received $500.00 from the Debtor, leaving a $4,500.00 balance to be paid through the Debtor’s Chapter 13 plan. The Disclosure of Compensation further provided that Ms. Casey’s fee excluded only adversary proceedings. The attorney fee disclosure in the Disclosure of Compensation constituted Ms. Casey’s election to be compensated in this case in accordance with the following provisions of Local Bankruptcy Rule 2016 — 1(C):

(1) Generally

(a) The Court may award fees and expenses to the attorney for the debt- or(s) in a chapter 13 case, without a hearing, at the Court’s direction, in an amount not to exceed $5,000, as set forth in paragraph (C)(3) of this Local Bankruptcy Rule, and subject to periodic adjustment, as provided for in subparagraph (C)(3)(e) of this Local Bankruptcy Rule.

(3) Fees Requested Not in Excess of $5,000 [For all Cases and Proceedings (Absent Specified Exceptions) Filed on or After August 1, 2014]

(a) If the initial fee charged to a debtors) for services in a chapter 13 case, filed on or after August 1, 2014, does not exceed $5,000 (other than the initial filing fee) a formal application for approval and payment of the unpaid amount through the chapter 13 plan will not be required if the total fee and the unpaid portion clearly is set forth in the chapter 13 plan, and the fee is consistent with the disclosure of compensation statement filed under Federal Rule of Bankruptcy Procedure 2016 at the commencement of the case. An election under this sub-paragraph must be made at the commencement of the case; otherwise, it shall be deemed waived and compensation and reimbursement of expenses shall be requested [by filing an application for compensation with the Court].

LBR 2016 — 1(C)(1)(a), (3)(a) (collectively, the “No-Look Fee”).2

[72]*72The Court convened a confirmation hearing on the Chapter 13 plan on May 8, 2015. At that hearing, the Court sustained an objection to confirmation filed on behalf of LPP Mortgage, Ltd. (“LPP”). To memorialize its ruling, the Court entered an order denying confirmation of the Chapter 13 plan on May 12, 2015 (the “Order Denying Confirmation”). In accordance with Local Bankruptcy Rule 3015-2, the Order Denying Confirmation directed, the Clerk of this Court (the “Clerk”) to dismiss the case unless, within twenty-one days, the Debtor either filed an amended Chapter 13 plan, moved to convert the case to one under another chapter of Title 11, or moved for reconsideration of or appealed the Order Denying Confirmation. The Debtor failed to take any of the aforementioned actions within twenty-one days of the Order Denying Confirmation. However, because the Debtor had filed a prior bankruptcy case that was pending within one year of the instant case,3 the Clerk did not dismiss the case for failure to comply with Local Bankruptcy Rule 3015-2 and the Order Denying Confirmation and instead issued a notice to show cause to the Debtor pursuant to the provisions of Local Bankruptcy Rule' 1017-3 as were then in effect.4 On June 8, 2015, the Clerk requested the issuance of a notice to show cause, which was subsequently entered on the docket on June 11, 2015 (the “Notice to Show Cause”).

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Cite This Page — Counsel Stack

Bluebook (online)
553 B.R. 69, 2016 Bankr. LEXIS 2263, 2016 WL 3362542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-beale-vaeb-2016.