In re Clinkscale

525 B.R. 399, 2015 WL 196409
CourtUnited States Bankruptcy Court, W.D. Michigan
DecidedJanuary 14, 2015
DocketNos. DG 10-05265, DG 11-00960, DG 11-11541, DG 12-03493, DG 12-05065, DG 12-06996, DG 13-01407, DG 13-06682, GG 12-04294, GG 13-07428, GG 11-11807, GG 12-04442, GG 12-04929, GG 12-10623
StatusPublished
Cited by2 cases

This text of 525 B.R. 399 (In re Clinkscale) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, W.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 Clinkscale, 525 B.R. 399, 2015 WL 196409 (Mich. 2015).

Opinion

AMENDED1 OPINION AND ORDER

Jeffrey D. Mapes, Esq., a member of the bar of this court and the State Bar of Michigan, regularly represents individuals seeking relief under the Bankruptcy Code, including under chapter 13. In each of the above-captioned matters, he has filed an application under 11 U.S.C. § 330(a)(4), requesting approval of his firm’s fees and expenses (collectively, the “Fee Petitions”).2 Brett N. Rodgers, chapter 13 trustee (the “Trustee”), has filed nearly identical objections (the “Objections”) in each case, mainly targeting the request for compensation of staff time spent monitoring the cases each month, and Mr. Mapes’s time spent reviewing the monitoring activity-

Because of the number of Fee Petitions and Objections and the similarity and importance of the issues raised in each, the court took the unusual step of consolidating these contested matters for argument, and conducted an en banc hearing in Grand Rapids, Michigan, on January 5, 2015. See In re Ludwick, 185 B.R. 238, 245 n. 12 (Bankr.W.D.Mich.1995) (holding that 28 U.S.C. § 154(a) gives the court authority to sit en banc).3

The court has carefully considered the Fee Petitions, the Objections, the oral and written arguments of counsel, and has conducted its own research. For the following reasons, the court will deny the Fee Petitions without prejudice.

I. JURISDICTION

Pursuant to 28 U.S.C. § 1334(a), the United States District Court has juris[402]*402diction over the above-captioned cases, and each case has been referred to the United States Bankruptcy Court pursuant to 28 U.S.C. § 157(a) and L.Civ.R. 83.2(a) (W.D.Mich.). The Fee Petitions include claims against the various bankruptcy estates, and therefore fall well within the Bankruptcy Court’s authority to “hear and determine” by entry of a final order. See 28 U.S.C. § 157(b)(2)(B). Indeed, the Sixth Circuit and the United States Supreme Court have recently acknowledged that the authority of a Bankruptcy Court is at its height when the court considers matters affecting the allowance or disallowance of claims. See generally Stem v. Marshall, — U.S. —, 131 S.Ct. 2594, 2601, 180 L.Ed.2d 475 (2011); Onkyo Europe Electronics GMBH v. Global Technovations Inc. (In re Global Technovations Inc.), 694 F.3d 705 (6th Cir.2012). The present matter involves no request to “augment the estate” but instead requests a share of the res included within each bankruptcy estate. The court has ample authority to resolve the disputes.

II. ANALYSIS

Although attorneys who represent individual debtors in chapter 7 proceedings may only look to their clients for the payment of fees, attorneys who represent chapter 13 debtors enjoy additional rights to payment of their fees as an administrative claim, paid from estate assets. To qualify for an administrative expense, the attorney must persuade the court to award fees under § 330(a). See 11 U.S.C. § 503(b)(2) (administrative expenses include fees awarded under § 330(a)); see also In re Kennedy Manufacturing, 331 B.R. 744 (Bankr.N.D.Ohio 2005) (though fee applications by professionals may be entitled to “presumption of correctness” if sufficiently detailed, applicant bears burden of proving that fees and expenses are compensable). Under § 330(a), which primarily addresses compensation of professionals who represent the estate, the court may award “reasonable compensation to the debtor’s attorney for representing the interests of the debtor in connection with the bankruptcy case based on a consideration of the benefit and necessity of such services to the debtor and the other factors set forth in this section.” 11 U.S.C. § 330(a)(4)(B). These additional factors include, but are not limited to, the following:

(A) the time spent on such services;
(B) the rates charged for such services;
(C) whether the services were necessary to the administration of, or beneficial at the time at which the service was rendered toward the completion of, a case under this title;
(D) whether the services were performed within a reasonable amount of time commensurate with the complexity, importance, and nature of the problem, issue, or task addressed;
(E) with respect to a professional person, whether the person is board certified or otherwise has demonstrated skill and experience in the bankruptcy field; and
(F) whether the compensation is reasonable based on the customary compensation charged by comparably skilled practitioners in cases other than cases under this title.

11 U.S.C. § 330(a)(3). The Sixth Circuit has adopted the “lodestar” method of calculating fees, requiring the court to consider “a reasonable hourly rate for the particular attorney handling the case” and then multiplying that rate by the “reasonable hours worked on the case.” In re Boddy, 950 F.2d 334, 337 (6th Cir.1991). But, as this court and others have recently observed, the evaluation of attorney fee requests under § 330 is “more nuanced” [403]*403than Boddy’s helpful formula. In re Acevedo, 2014 WL 6775272 (Bankr.W.D.Mich. 2014); In re Ulrich, 517 B.R. 77 (Bankr. E.D.Mich.2014). Any professional requesting compensation under § 330(a) has the burden of proving entitlement to an award. Id. at 80.4

The court notes that Mr. Mapes is “board certified” and that the Trustee has not challenged his hourly rate ($250.00)— perhaps because the rate is presumptively reasonable under the court’s Memorandum Regarding Allowance of Compensation and Reimbursement of Expenses for Court-Appointed Professionals, as amended effective October 1, 2013, (the “Fee Memorandum”) at ¶ 16. Similarly, the Trustee takes no issue with the rates that Mr. Mapes charges for other attorneys and paraprofessionals in his office. The Fee Petitions, therefore, satisfy the first aspect of the lodestar analysis.

The common entries among the Fee Petitions which drew the Trustee’s Objections are those such as the following, taken from the fee itemization in the case of Melissa and James Robinson:

11/14/2013 November case status review f ^ tO to o 04 o CD

12/3/2013 December case status review r* C/J W tO to o tH o CD

12/5/2013 Review November analyst notes <*/> C/V CR tO on o T — I o

1/3/2014 Review December analyst notes

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Related

In re Cripps
549 B.R. 836 (W.D. Michigan, 2016)
In re Hirsch
550 B.R. 126 (W.D. Michigan, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
525 B.R. 399, 2015 WL 196409, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-clinkscale-miwb-2015.