In Re Krug

174 B.R. 826, 1994 Bankr. LEXIS 1812, 1994 WL 668185
CourtUnited States Bankruptcy Court, D. Kansas
DecidedNovember 21, 1994
Docket19-40093
StatusPublished

This text of 174 B.R. 826 (In Re Krug) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Krug, 174 B.R. 826, 1994 Bankr. LEXIS 1812, 1994 WL 668185 (Kan. 1994).

Opinion

ORDER ALLOWING ATTORNEYS’ FEES AND EXPENSES

JULIE A. ROBINSON, Bankruptcy Judge.

Counsel for the debtor, Woner, Glenn, Reeder & Girard, has filed a Second Interim Application for Attorneys’ Fees and Expenses in the amount of $14,113.61 for the period of January 1, 1994 through March 31, 1994. Peoples State Bank & Trust Co. (Bank) objects to the form of the fee application as well as the amount of the fees charged. In particular, the Bank objects to certain “batched” entries in the application as well as the amount of time claimed in connection with preparing and filing pleadings to remove a state court action to this Court. The Bank also objects that the total amount of fees requested in this second application together with the allowed fees in the first application ($9,369.80) are unreasonably high. The Bank did not object to the first application for fees.

A hearing was held on September 19,1994, at which time the Court directed the applicant to cure the objection to batched entries by submitting a supplemental application that itemized in particular, the entries relat *828 ing to the removal proceeding. The applicant filed a supplement on September 27, 1994, and the matter is now ready for decision.

In its Amended Objection to Second Interim Application for Attorneys’ Fees and Expenses, the Bank raises four concerns:

(1) the application fails to provide a recapitulation of fees already paid by the debt- or including the amount, source and date of the payments as well as what compensation and fees have been previously approved by the Court;
(2) the billing statements include a number of “batched” entries that fail to itemize the time spent on each task within the entry, the number of dollars charged for each hour of such attorney’s time and the total charge for the activity;
(3) the eight (8) hours of time expended in reviewing, researching and preparing for the removal of state court foreclosure actions to this Court was excessive; and
(4) in general, the fees are too high, particularly when considered in concert with the fees allowed in the applicant’s first interim application for fees.

At the outset, it should be noted that the Bank’s objection is in large part based on the applicant’s failure to comply with the Fee and Expense Reimbursement Guidelines published by the Honorable John T. Flanna-gan. To date, the undersigned judge has not established or published fee guidelines, nor indicated that the guidelines of Judge Flan-nagan would be adopted. Attached to this opinion is an Appendix that publishes the guidelines of this judge. Many of Judge Flannagan’s guidelines are incorporated into these guidelines. However, to the extent that the applicant has failed to comply with this Court’s new guidelines, the fee application will not be denied, as the debtor has not had prior notice.

This Court will require in all future fee applications in this case and all other cases, that the applicant present a recapitulation of what payments have been made, the source of the payments, the date of the payments and what compensation and reimbursement amounts have been previously approved by the Court. In the instant application, the Court finds that the applicant has recited the date of the first interim fee application, the date it was approved, and that the entire application for $9,369.80 was approved. That is a sufficient recapitulation; but in the future, applicants will need to disclose the date and source of payments outside of bankruptcy court, as well.

The Bank also objects to batched entries, but at the hearing on its objection, indicated that its objection was limited to those relating to the removal proceeding. The applicant has filed a supplemental application that itemizes the batched entries. In the future, as set out more fully in the attached Appendix, fee applicants must provide individual and separate entries for each service performed.

The Bank further objects that excessive time is claimed for work relating to the removal of state court actions to the bankruptcy court. The applicant spent 1.2 hours on the petition for removal, 1.5 hours on the removal complaint and a related adversary complaint, 2.0 hours analyzing how to accomplish a removal, 2.8 hours revising removal pleadings and plan, and 1.0 hour gathering all state court pleadings and filing and serving the removal pleadings, for a total of 8.5 hours.

In determining whether the amount of time expended on this activity is reasonable, the Court is guided by In re Permian Anchor Services, Inc., 649 F.2d 763, 768 (10th Cir.1981), which adopted the lodestar analysis set forth in Johnson v. Georgia Highway Express, Inc., 488 F.2d 714, 717-19 (5th Cir. 1974), which looks to the following factors:

(1) the time and labor required; (2) the novelty and difficulty of the questions; (3) the skill requisite to perform the legal service properly; (4) the preclusion of other employment by the attorney due to acceptance of the case; (5) the customary fee; (6) whether the fee is fixed or contingent; (7) time limitations imposed by the client or the circumstances; (8) the amount involved and the results obtained; (9) the experience, reputation, and ability of the attorneys; (10) the “undesirability” of the *829 case; (11) the nature and length of the professional relationship with the client; and (12) awards in similar eases.

In this case, the applicant is a firm composed of experienced bankruptcy attorneys. Although filing a removal action may not be unusual to those who have a federal civil practice, in the context of bankruptcy it is.

In this case, the Court finds that the time the applicant spent in analyzing the removal statutes and determining the proper procedure was time reasonably spent in view of the applicant’s unfamiliarity with removal and the relative novelty of a removal proceeding in the context of a bankruptcy case. The applicant had to necessarily consider the removal statute at 28 U.S.C. § 1446, along with the more particular statute for removal of claims related to bankruptcy cases, at 28 U.S.C. § 1452. The applicant had to also consider whether the action was removable at all, pursuant to 28 U.S.C. §§ 1441 and 1445; and if so, the procedure for removal and after removal, pursuant to 28 U.S.C. §§ 1446, 1447,1448,

Related

Cite This Page — Counsel Stack

Bluebook (online)
174 B.R. 826, 1994 Bankr. LEXIS 1812, 1994 WL 668185, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-krug-ksb-1994.