In re Boston & Maine Corp.

46 B.R. 974, 1984 U.S. Dist. LEXIS 22773
District Court, D. Massachusetts·Decided October 14, 1984·No. No. 70-250-M·Published·Cited by 1 cases

Opinion

MEMORANDUM

PETITION OF RALPH J. MOORE, JR., ESQUIRE, FOR FINAL ALLOWANCE OF COMPENSATION AND DISBURSEMENTS INCURRED AS SPECIAL COUNSEL

IN RE PROCEEDINGS BEFORE LABOR ARBITRATION BOARD No. 387, JANUARY 1, 1980 to SEPTEMBER 30,1980

FRANK J. MURRAY, Senior District Judge.

Ralph J. Moore, Jr. (the “Petitioner”), of the law firm of Shea & Gardner, seeks compensation and reimbursement of expenses for the period January 1, 1980 to September 30, 1980 in the total amount of $269,901.27 out of the Debtor’s estate for services rendered by him and his assistants in behalf of the Debtor in respect of the proceedings before Labor Arbitration Board. No. 387. On March 6, 1980, the court authorized the trustees to enter into an agreement with United Transportation Union (“UTU”) to submit to binding arbitration proposals for changes in certain wage rules and working conditions.

After the Interstate Commerce Commission, pursuant to 11 U.S.C. § 205(c)(2), fixed the maximum limits within which allowance of compensation to Petitioner may be made, the petition came on to [975]*975be heard after due notice to creditors and other parties in interest. At the hearing no formal objection to the petition was presented, but that does not relieve the court of the responsibility of close and systematic scrutiny of the petition to ensure that the allowance approved is within permissible limits.

The amount requested — $269,901.27—is the aggregate of these items: compensation of legal services rendered, $238,482.50; reimbursement of expenses, $25,083.77; and repayment of paralegals, $6335.00. Petitioner has submitted a statement of itemization of attorney time expended in repdering legal services that totals 2450.50 hours, and of hourly rates of compensation of-the attorneys involved that range from' $130 for Petitioner to $60 per hour for each of two associates. The compensation requested is for the services of six attorneys: the Petitioner, two of his partners and three associates. In tabular form the details of the requested amount of $269,-901.27 may be shown as follows:

Partners

Ralph J. Moore, Jr. 420.25 hrs. $130/hr. 54,632.50

Anthony A. Lapham 422.00 hrs. 125/hr. 52,750.00

Richard M. Sharp 127.50 hrs. 120/hr. 15,300.00

Associates

Stephen J. Hadley 898.50 hrs. 90/hr. 80,865.00

Michael S. Giannotto 557.75 hrs. 60/hr. 33,465.00

William N. Eskridge 24.50 hrs. 60/hr. 1,470.00

Totals 2450.50 hrs. 238,482.50

B. Expenses

Duplicating $ 10,957.86

Telephone 1,782.75

Postage 180.65

Telecopier 63.00

Secretarial/Messenger OT 3,511.35

Cab Fare 300.50

Lexis 150.94

Courier Service 768.92

Travel 6,432.11

Meals 496.85

Miscellaneous 438.84

$ 25,083.77

C. Paralegal expense at 30/hr. 6,335.00

Grand Total $ 269,901.27

Petitioner was appointed special counsel by the trustees, pursuant to Order No. 105, and was assigned by the trustees the responsibility of representing the Debtor in the proceedings before Arbitration Board No. 387 following the authorization granted to the trustees to enter into the agreement with UTU. Petitioner’s law firm had had experience in railway labor matters generally, and crew-consist issues in particular over several years. The firm had represented the railroad industry in litigation, and had represented a number of individual railroads in the handling of crew-consist and other railway labor issues, during those years. Debtor’s Vice-President of Labor Relations, B.E. Rice, Jr., was familiar with the experience of Petitioner and his firm, as a result of working with them before Mr. Rice was employed by the Debt- or.

In the arbitration matter, the services rendered by Petitioner and his assistants involved activities which may be catego[976]*976rized as (a) preparation for the hearing, (b) presentation of the case to the Arbitration Board, (c) preparation and submission of the post-hearing brief to the Board, and (d) activities incidental to the arbitration proceedings after submission of the case to the Board.

The principal proposed change submitted to Arbitration Board No. 387 was the crew-consist issue: the number of employees required by work rule to attend a train during its operation. Debtor proposed change in the rule to permit it to assign a fewer number of trainmen, and thus eliminate the expense of unnecessary employees. It was argued that the revision of the crew-consist rule was of importance in the ultimate reorganization of the railroad. UTU customarily opposed reduction in the number of train crew employees. With other railroads UTU had agreed to such reduction in exchange for economic concessions by the carrier. UTU agreed with Debtor for binding arbitration on the crew-consist issue, and on the UTU demands for retroactive and future wage increases covering a three and one-half year period beginning in 1978, and on other proposals of the Debtor and UTU governing wage and working conditions. The Arbitration Board’s award is annexed hereto and marked “A”.

The quality of the work performed by Petitioner and his assistants was high and the results obtained were beneficial to the Debtor’s estate.

Petitioner expected that he would provide the necessary services in representing the Debtor in the arbitration proceedings, together with a junior associate. During the preparation stage of the assignment, Petitioner enlisted the assistance of not only one associate, but also of two partners, an additional two associates and two paralegals. The hours expended by Petitioner himself represented approximately 17% of the total of the 2450.50 hours for which compensation is sought, whereas the hours of his associates account for approximately 60% of the 2450.50 hours spent. Petitioner explained that he added his two partners, two associates and the paralegals to the arbitration matter after a discussion with the President and the Vice-President of Labor Relations of the Boston and Maine Corporation.

The record of activities during the hours for which Petitioner seeks compensation may be divided into the following time periods:

Included in the 2450.50 hours for which Petitioner seeks compensation, are 567.75 hours, shown in the table below, spent on joint tasks by two or more attorneys. The table was furnished by Petitioner after the court raised the question of possible duplication of hours and of services. The total of 567.75 hours represents approximately 23% of the 2450.50 hours for which compensation is sought.

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In re Boston & Maine Corp., 46 B.R. 974, 1984 U.S. Dist. LEXIS 22773 (D. Mass. 1984).

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