In Re Farwell

77 B.R. 198, 1987 U.S. Dist. LEXIS 5597
CourtDistrict Court, N.D. Illinois
DecidedJune 19, 1987
Docket86 C 9577 (82 B 15142)
StatusPublished
Cited by4 cases

This text of 77 B.R. 198 (In Re Farwell) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Farwell, 77 B.R. 198, 1987 U.S. Dist. LEXIS 5597 (N.D. Ill. 1987).

Opinion

MEMORANDUM OPINION AND ORDER

GRADY, Chief Judge.

This case is before us on appeal from the bankruptcy court’s opinions and orders of September 2, 1986 snd October 23, 1986, wherein Chief Judge Robert Eisen explained his findings of fact and conclusions of law in awarding appellants their fees and costs for work done as attorneys for Robert and Carol Farwell, debtors. Appellants move to vacate these orders, or in the alternative, remand for further hearing. The case had been remanded so that Judge Eisen could make the necessary findings and conclusions pursuant to Federal Rule of Civil Procedure 52(a). 1 In re Farwell, 63 B.R. 414 (N.D.Ill.1986) (Williams, J.). *199 As the facts have been set forth in Judge Eisen’s and Judge Williams’ opinions, we will not recite them here and will refer to facts only where necessary.

Appellants Lord, Bissell & Brook (“Appellants”) argue that Judge Eisen’s memo-randa do not conform to Rule 52(a). Appellants’ Brief at 9. They also argue that various factual findings are not supported by substantial evidence, id. at 16, and that the judge abused his discretion in basing his ruling on subjective judgment. Id. at 6. We begin with Rule 52(a).

DISCUSSION

The thrust of appellants’ Rule 52(a) argument is that it is impossible for them to determine how the judge calculated their fee award or how he applied the law. Id. at 9. Specifically, they complain that the judge did not make findings as to reasonable hourly rates and total hours reasonably spent. Id. at 11. Appellants also contend that although the judge enumerated eight factors he considered in determining the award (the nature of services rendered, difficulty and complexity encountered, time necessarily spent, burden to the estate, size of the estate, result achieved, duplication of services and professional standing), he did not indicate how those factors affected his decision. Id. at 12.

Briefly stated, appellants had requested $68,242.35 in fees, less $12,000.00 already paid, plus $1,710.38 in expenses. Judge Eisen awarded $30,700.00 in fees (less the retainer) plus $1,200.00 in expenses. Thus, he awarded appellants approximately 43% of the amount requested. The judge determined that “given the size of the estate, the complexity of the matters involved, and the benefit realized by the estate for services rendered,” $30,700.00 was the compensation due for appellants’ necessary and reasonable services. Memorandum of September 2 at 5 (“Sept. Mem.”). He awarded $1,200.00 in expenses because of the “inadequacy of [their] justification.” Id. In coming to his conclusion the judge found that “much of the work performed by [appellants] was excessive.” Id. at 4. For example, 29% of the total time billed was for work on the debtor’s plan of reorganization, which the debtors withdrew prior to confirmation. Id. at 2. Appellants requested compensation for eleven continuances on behalf of their clients, which delayed the case thirteen months. Id. Appellants also billed time for work done after the creditor’s reorganization plan had been confirmed. Id. at 3. Judge Eisen also commented on appellants’ staffing of the case with thirteen attorneys, who billed at rates ranging from $38 to $171 per hour. Id. at 2. In general, he found the rates to be too high given the simplicity of the case and the legal issues involved. October 23 Memorandum (“Oct. Mem.”). He noted that one associate (who logged nearly half of the total 600 hours billed) charged at rates over $100 per hour. Sept. Mem. at 2.

These findings of fact and conclusions of law meet the requirements of Rule 52(a). Rule 52(a) does not require elaborately detailed findings; the findings need only be sufficient to discern the basis of the court’s decision. J. Moore & J. Lucas, 5A Moore’s Federal Practice ¶52.06[2] at 52-142 (1986). Rule 52(a), however, is not an appropriate standard by which to review Judge Eisen’s orders. A court’s fee award will not be overturned absent an abuse of discretion or a clearly erroneus finding of fact. Lynch v. City of Milwaukee, 747 F.2d 423, 426 (7th Cir.1984). Appellants’ argument that Judge Eisen’s memoranda are insufficient because they neither state the number' of hours reasonably spent at a reasonable hourly rate nor explain how certain factors influenced his decision must be evaluated according to the abuse of discretion standard. It is true that the judge never specifically stated what a reasonable rate or a reasonable number of billable hours would be in this case. But, as the Seventh Circuit said, “There is no one formula for determining a fee award, and therefore the district court’s calculation is anything but an arithmetical exercise.” Tomazzoli v. Sheedy, 804 F.2d 93, 97 (7th Cir.1986) (citations omitted). The court went on to endorse lump sum reductions “as a practical means of trimming fat from a fee application, [because] it is unrealistic to expect a trial court to evaluate and rule *200 on every entry in an application.” Id. at 98.

We believe, therefore, that it was not necessary for Judge Eisen to make findings as to how many hours and what hourly rates were appropriate. Likewise, Judge Eisen’s failure to elaborate how certain criteria affected his decision is no abuse of discretion. His duty was to provide “a concise but clear explanation” of his reasons for the fees he allowed. Tomazzoli, 804 F.2d at 97 (citing Hensley v. Eckerhart, 461 U.S. 424, 437, 103 S.Ct. 1933, 1941, 76 L.Ed.2d 40 (1983)). The purpose of requiring a court to give a clear and concise explanation of its reason for an award is to enable an appellate court to determine whether the court considered and assessed relevant information. Tomazzoli, 804 F.2d at 97. Judge Eisen’s memoranda are sufficient to indicate that he did consider and assess relevant information. He found much of the work done to be duplicative and unnecessary. He found appellants’ billing rates too high, given the nature of the case. He found a large percentage of appellants’ work to have been of no benefit to the estate. He found the appellants ineligible for the fees requested for post-confirmation work as the trustees were the only authorized representatives of the estate. Clearly, Judge Eisen did not simply “eyeball” the request and arbitrarily cut it down because it seemed excessive; rather, he reviewed the request and found it excessive in light of the requirements of the case, of which he had first-hand knowledge.

Appellants argue further that Judge Eisen abused his discretion by using his “subjective” judgment. Appellants’ Brief at 6. They refer to the October memorandum, wherein Judge Eisen stated:

Section 330(a) of the Bankruptcy Code provides that ‘the court

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Bluebook (online)
77 B.R. 198, 1987 U.S. Dist. LEXIS 5597, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-farwell-ilnd-1987.