In Re Larson

346 B.R. 693, 2006 Bankr. LEXIS 1529, 2006 WL 2129753
CourtUnited States Bankruptcy Court, E.D. Virginia
DecidedJuly 21, 2006
Docket19-10403
StatusPublished
Cited by10 cases

This text of 346 B.R. 693 (In Re Larson) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Larson, 346 B.R. 693, 2006 Bankr. LEXIS 1529, 2006 WL 2129753 (Va. 2006).

Opinion

MEMORANDUM OPINION

STEPHEN C. ST. JOHN, Bankruptcy Judge.

This matter came on for hearing on July 6, 2006, upon the Application for Compen *697 sation (“Application”) filed by Edward J. Sargent, Counsel for the Debtors in the above-captioned matter (“Sargent”). At the conclusion of the hearing, the Court took this matter under advisement. The Court has jurisdiction over these proceedings pursuant to 28 U.S.C. §§ 157(b)(2) and 1334(b). Venue is proper pursuant to 28 U.S.C. §§ 1408 and 1409. Upon consideration of the evidence and arguments presented by counsel at the hearing and the pleadings submitted, the Court makes the following findings of fact and conclusions of law.

I. FINDINGS OF FACT

On October 14, 2005, Sargent filed a voluntary petition under Chapter 13 of the Bankruptcy Code for the above-named Debtors. On April 20, 2006, Sargent filed his Application for Compensation. In his Application, Sargent requests additional compensation in the amount of $1,906.13, itemized as $1,417.50 for fees and $488.63 for costs incurred. With regard to fees, Sargent asserts that he rendered services for which his fees total $4,427.50 and that his paralegal rendered services totaling $285.00 in relation to the instant case. Sargent states that the Debtors paid him the sum of $500.00 plus the filing fee of $194.00 at the beginning of his representation, and that an additional $1,000.00 in fees is being paid to him by the Debtors through their Chapter 13 Plan. 1 Sargent further states that, with regard to certain proceedings against the Virginia Division of Child Support Enforcement Services (“DCSE”) in the Debtors’ bankruptcy case, an agreement was reached with DCSE whereby DCSE agreed to pay the sum of $1,795.00 to Sargent for time he and his paralegal expended to have the husband-debtor’s driver’s license reinstated, as well as $95.00 to the husband-debtor to reimburse the cost of having his driver’s license reinstated. 2 Thus, Sargent seeks approval of the remaining $1,417.50 in fees. He also seeks the reimbursement of costs incurred in the amount of $488.63.

As to Sargent’s attorney fees, he asserts that he expended a total of 25.3 hours, at an hourly rate of $175.00, on matters relating to the Debtors’ case. According to the Application, this total represents the total time spent working on the Debtors’ case, including the time expended on certain proceedings against DCSE, which are being reimbursed by that agency. He also represents that his paralegal worked for 3.8 hours on issues related to the Debtors’ case. The entire amount of the paralegal’s work was contained in the portion of fees reimbursed by DCSE; thus, Sargent does not seek payment for the services of his paralegal in this Application. Sargent also represents that he incurred costs of $488.63 for copying costs and postage for *698 various documents in relation to the Debtors’ case. 3

In support of his request, Sargent states in the Application that after filing the Debtors’ petition, the Chapter 13 Trustee filed an Objection to Confirmation; DCSE had the husband-debtor’s license suspended; and a second Objection to Confirmation was filed by the Chapter 13 Trustee. Further, Sargent states that both of the Objections to Confirmation were resolved, the first by amending the Chapter 13 Plan and schedules, and the second by amending Schedule J with regard to the Debtors’ business expenses. With regard to the matters against DCSE, Sargent filed, on behalf of the Debtors, a Motion for Contempt and Sanctions, and states that a consent decree is currently circulating among the parties resolving that motion. 4

A hearing on the Application was held on July 6, 2006, at which Sargent and Frank J. Santoro, appearing for George W. Neal, Chapter 13 Trustee, appeared. Sargent stated that the issues raised in the Objections to Confirmation filed by the Chapter 13 Trustee required him to expend additional time in the Debtors’ case. Sargent confirmed that DCSE would be reimbursing his expenses for time spent in relation to the proceedings against that agency.

When asked by the Court about his time records, Sargent represented that he kept time in the instant matter in the same manner as previously represented in a separate case in which he had sought additional compensation. See generally Curtis & Cynthia Bryant, Case No. 05-71240, Memorandum Opinion, Docket Entry 71, entered July 18, 2006. He affirmed that he maintained contemporaneous time records with regard to services he rendered in this case. However, the typed documents attached to the Application, which list the activities undertaken by both himself and his paralegal in the instant case and the alleged time spent on such activities (“documents”), were not a copy of those handwritten time records actually maintained for the case. He further confirmed that he kept contemporaneous time records by recording the time spent on each task at the time the task was performed, and that these handwritten notes are maintained in the client file, along with copies of pleadings and other documents (“time records”). He represented to the Court that his paralegal records her time in the same fashion. 5 When the Applica *699 tion was prepared, his paralegal entered the time from the time records onto the documents attached to the Application, which he reviewed for accuracy prior to filing the Application. 6

Mr. Santoro stated at the hearing that the Chapter 13 Trustee had reviewed the Application and had no objection to the amount sought by Sargent. He further stated that there were sufficient funds in the bankruptcy estate to pay the amount sought in the Application. The Chapter 13 Trustee did, however, cite to an arithmetic error with regard to the cost portion of the Application. With regard to the April 20, 2006, entry for copying costs, Mr. Santoro stated that the correct amount for the copies should be $111.00, not $132.00, and thus, the costs Sargent seeks to be reimbursed should be reduced by $21.00, to $467.63.

At the conclusion of the hearing, given Sargent’s representation to the Court that the documents attached to the Application were not the actual and literal copies of the time records kept in the instant case, the Court ordered Sargent to submit copies of his actual contemporaneous time records to the Court within ten days. Such records were timely submitted for the entire time period of Sargent’s representation of the Debtors.

II. CONCLUSIONS OF LAW

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Cite This Page — Counsel Stack

Bluebook (online)
346 B.R. 693, 2006 Bankr. LEXIS 1529, 2006 WL 2129753, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-larson-vaeb-2006.