In Re Campbell

396 B.R. 500
CourtDistrict Court, E.D. Michigan
DecidedOctober 22, 2008
Docket08-12964. Bankruptcy No. 06-58897
StatusPublished
Cited by3 cases

This text of 396 B.R. 500 (In Re Campbell) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Campbell, 396 B.R. 500 (E.D. Mich. 2008).

Opinion

396 B.R. 500 (2008)

Greta CAMPBELL, Debtor.
Weik and Associates P.C., Appellant,
v.
Krispen S. Carroll, Chapter 13 Trustee, Appellee.

No. 08-12964. Bankruptcy No. 06-58897.

United States District Court, E.D. Michigan, Southern Division.

October 22, 2008.

*501 Terri Weik, Weik and Associates, P.C., Warren, MI, for Debtor.

OPINION

DAVID M. LAWSON, District Judge.

This appeal was commenced by a Chapter 13 debtor's attorney to challenge an order entered by the bankruptcy court approving attorney's fees for post-confirmation work. Weik and Associates, P.C., appellant and counsel for the debtor, claims that the fee order improperly disallowed.9 hours of billed time at $200 per hour, for a total of $180, and the bankruptcy court thus abused its discretion. However, the fee order was entered pursuant to a stipulation that the appellant attorney signed. The fees awarded are in the exact amount recited in the stipulation the appellant signed with the Chapter 13 trustee. Although the appellant now seeks to challenge the general guidelines discussed on the record by the bankruptcy judge before the stipulation ultimately was drafted, this Court finds that the appellant has waived its right to appeal that order by agreeing to its terms in the bankruptcy court. Therefore, the order approving post-confirmation fees is affirmed.

I.

On December 19, 2006, Greta Campbell filed a voluntary petition for relief under Chapter 13 of the bankruptcy code. Her plan was confirmed on March 16, 2007. On August 1, 2007, counsel conducted a post-confirmation review of the file, presumably to monitor compliance with the plan. The law firm charged 1.4 hours for that service. Fees relating to that review are not in dispute in this appeal.

The dispute in this case centers around a second post-confirmation review by the debtor's counsel performed on April 23, 2008. In its fee petition, counsel stated that 1.2 hours were spent on that review, broken down in the following manner:

                                                                         Hours   Amount
Post Confirmation file review.                                            0.20   40.00
Accessed Pacer. Reviewed Docket Report and Claims Register.               0.20   40.00
Accessed Trustee system for pay history, claims, disbursements, payees,
 and plan calc.                                                           0.30   60.00
Compared Claims Register with filed Claims in file, Schedules, and
 Trustee System.                                                          0.20   40.00
Prepared report for file.                                                 0.10   20.00
Drafted letter to Debtor re: status of case, and request for Debtor to
 submit Federal income tax refunds/returns.                               0.20   40.00

Second App. for Comp., Ex. 5 [case no. 06-58897, dkt. #45]. This work was performed by Shannon R. Warner at a billable rate of $200. per hour, for a total of $240. Other charges, which are not in dispute, brought the total fee application of May 23, 2008 to $493.78 in professional services plus $5.66 in costs.

*502 The trustee objected to the fee petition as excessive because there had been a prior review within the preceding year, no pleadings or other case activity had been filed to prompt such a review, and the amount of time charged for the described work was unreasonably large. The time spent searching the docket, the trustee noted, was especially unusual in light of the bankruptcy court's electronic filing system, which notifies counsel immediately of case activity. The trustee also noted that the time entries were "pro forma" and duplicated the work performed in August 2007.

The bankruptcy court consolidated the fee petition with three other fee petitions by the same law firm and held a hearing on all of them on June 25, 2008. One of the four applications was presented in the form of a rehearing motion of a prior fee request that was rejected by the bankruptcy court. At the hearing, the court asked counsel to explain what work was included in the description "file review." She responded with this explanation:

[W]hat we do in that case, we review the file, review — make sure that there are — if we've gotten any correspondences from any creditors or any documentation and notices from creditors or from the debtor just to make any new payments — or not payments — I'm sorry — any pay advices, anything like that, for the debtor and make sure everything is adding up with what we have, both what's been filed with the Court in the docket report as well as the information that we have in the file. We go through a thorough review of everything that has taken place, any — review any motions, ensure that any — if we've done a plan modification — well, in the past before the new local rules took place that the order had been entered double-checking all that kind of thing.
Then with regard to the second — we reviewed the docket report again to make sure that there were — there's nothing that has been filed that we do not have in our files or that could affect the debtor's case as well as the claims register, any new claims that have been filed, how they — if there happen —

Hr'g Tr. at 7-8.

After the court questioned other time entries, the court proceeded to offer guidance on how petitions for post-confirmation attorney's fees should be evaluated. The court first stated that post-confirmation reviews are reasonable and necessary. It then suggested some "default guidelines" as to how often they should take place and how much time ought to be spent, noting that "there are cases in which a more frequent review is justified and cases perhaps in which a less frequent review is justified." Hr'g Tr. at 18. The court concluded that an initial review six months after confirmation is prudent, but then reviews more frequently than annually would require additional justification. As to the time required, the court believed that spending more than half-an-hour on second and subsequent reviews would require special justification. The court observed that none existed in these cases. But then the court concluded:

[S]o I'm going to ask counsel to work together to apply these guidelines to these four fee applications and see if you can agree upon what my ruling would be if it had to be presented to me and submit an order and be guided accordingly in the future.

Hr'g Tr. at 20.

On July 8, 2008, the law firm and the trustee submitted a stipulation to the court for the payment of the following fees:

Prior award for fees: $ 3,367.50
Prior award for cost: $ 7.95
*503 Total award to date: $ 3,375.45 Present award for fees: $ 313.78 Present award for cost: $ 5.66 Present award: $319.44
TOTAL OF FEES AND COSTS $ 3,694.89

Case No. 06-58897, dkt. # 52. The same day, the bankruptcy court entered an order containing the identical language. As it turned out, the stipulation and resulting order reduced the requested fee award by $180, or a reduction of 0.9 hours of attorney time.

The appellant filed a notice of appeal from that order. After briefing, the Court heard oral argument on the appeal on October 21, 2008.

II.

This Court has appellate jurisdiction over the final orders of the bankruptcy court, and an order conclusively granting or denying attorney's fees to a debtor's attorney constitutes such a final order. 28 U.S.C.

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Cite This Page — Counsel Stack

Bluebook (online)
396 B.R. 500, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-campbell-mied-2008.