In Re Flemming

444 B.R. 844, 2011 Bankr. LEXIS 548, 2011 WL 705478
CourtUnited States Bankruptcy Court, N.D. Ohio
DecidedJanuary 21, 2011
Docket19-30579
StatusPublished

This text of 444 B.R. 844 (In Re Flemming) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Flemming, 444 B.R. 844, 2011 Bankr. LEXIS 548, 2011 WL 705478 (Ohio 2011).

Opinion

MEMORANDUM OF OPINION AND ORDER

RANDOLPH BAXTER, Bankruptcy Judge.

This matter is before the Court on the Fee Application by Counsel for co-debtors Gilbert and Nancy Flemming (the “Application”). This Court acquires core matter jurisdiction over this matter pursuant to 28 U.S.C. § 157(a), (b)(1), 28 U.S.C. § 1334 and General Order No. 84 of the District. A hearing was held upon due notice to all entitled parties. After considering the *845 record, generally, the following constitutes the Court’s factual findings and conclusions of law:

On November 9, 2009, the Debtors filed a voluntary petition for relief under Chapter 13 of the Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Ohio, Eastern Division. Their Chapter 13 Plan was confirmed on October 8, 2010, following an appeal to the Bankruptcy Appellate Panel. Debtors’ counsel (the “Applicant”) filed an application for attorney’s fees in the amount of $10,550.04 on December 7, 2010.

The sole dispositive issue before this Court is whether the fees requested by Debtors’ counsel meet the “reasonableness” standard of the Bankruptcy Code.

Debtors’ filed a “Rights and Responsibilities of Chapter 13 Debtors and their Attorneys” the day after filing their petition. The form indicates that the initial fee charged the Debtors is $3,000.00, including a retainer of $800.00. The form also indicates that the Applicant will apply to the Court for any additional fees in the event that the initial fee charged is not sufficient to cover the work done on Debtors’ case. The Rights and Responsibilities form was executed on September 18, 2009.

The Application contains invoices detailing time spent on Debtors’ case from September 2, 2009 through September 30, 2010. The total fee requested for approval is $10,550.04, including the $800.00 retainer.

* * * *

Administrative Order 07-2 governs allowance of attorneys’ fees in Chapter 13 cases in the Cleveland Bankruptcy Court. It specifies that debtor’s counsel shall file an executed copy of the “Rights and Responsibilities of Chapter 13 Debtors and their Attorneys” within five days of filing the petition. Administrative Order 07-2 at 2-3. It further provides that debtor’s counsel need not file a fee application if certain requirements are met. Specifically:

3. If—
(a) an executed copy of the form “Rights and Responsibilities of Chapter 13 Debtors and their Attorneys” has been filed with the Court;
(b) the total fee (including expenses other than filing fees) requested by counsel for the debtor is $3,000 or less;
(c) the fee arrangement provides that $800 or less will be paid before the filing of the bankruptcy petition with the balance to be paid through the Chapter 13 plan; and
(d) no party in interest has objected to the proposed fee,
then those fees may be allowed by the Court in the order confirming the debt- or’s plan of reorganization based upon the form “Rights and Responsibilities of Chapter 13 Debtors and their Attorneys” signed by the attorney and debtor, and the attorney need not file a fee application under 11 U.S.C. § 330 and Bankruptcy Rule 2016(a).

Administrative Order 07-2 at 3. It also provides a list of the types of matters that should be covered by the above fee. The attorney fee should include meeting with and advising the debtor, understanding his or her financial situation, preparing required documents to be filed, representation in certain routine matters, and “[p]roviding such other legal services as are necessary for the administration of the case.” Administrative Order 07-2 at 4-5.

The Order further provides requirements that must be fulfilled if a debtor’s *846 attorney is requesting fees for novel or complex matters. It provides:

With respect to novel, complex, or non-routine matters, counsel may file a fee application in compliance with Bankruptcy Rules 2002 and 2016, setting forth, at a minimum: (a) documentation that services rendered in the case exceed, under the traditional lodestar analysis, the fee previously approved by the Court, and (b) as to each activity for which an additional fee is requested, the identity of the person performing such services, the billing rate for such person, the services performed, the dates of the services, the amount of time expended, and how such services are novel, complex, or non-routine.

Administrative Order 07-2 at 7.

Title 11 U.S.C. § 330 provides guidelines for a court to determine the reasonableness of attorneys’ fees. It states, in pertinent part:

(a)(3) In determining the amount of reasonable compensation to be awarded to [a] professional person, the court shall consider the nature, the extent, and the value of such services, taking into account all relevant factors, including—

(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. (Emphasis added.)

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An examination of the Application shows several areas where the fee charged is excessive. The invoice shows that the total amount of fees billed from the first meeting with the Debtors through the filing of their case is $3,045.00. The Applicant accrued fees up to the no-look amount ($3,000.00) before the Debtors’ case was filed, before there was any need to make modifications or amendments to documents, represent the Debtors at hearings, or respond to objections to confirmation. The Debtors are consumer debtors who do not operate a business.

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Related

Compensation of officers
11 U.S.C. § 330
Procedures
28 U.S.C. § 157(a)

Cite This Page — Counsel Stack

Bluebook (online)
444 B.R. 844, 2011 Bankr. LEXIS 548, 2011 WL 705478, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-flemming-ohnb-2011.