In re Marion Carefree Ltd. Partnership

171 B.R. 261, 1994 Bankr. LEXIS 1184, 1994 WL 457175
CourtUnited States Bankruptcy Court, N.D. Ohio
DecidedJuly 12, 1994
DocketBankruptcy No. 93-33011
StatusPublished

This text of 171 B.R. 261 (In re Marion Carefree Ltd. Partnership) 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 Marion Carefree Ltd. Partnership, 171 B.R. 261, 1994 Bankr. LEXIS 1184, 1994 WL 457175 (Ohio 1994).

Opinion

OPINION AND ORDER ALLOWING RICKETTS & ONDA’S APPLICATION FOR INTERIM PROFESSIONAL FEES AND EXPENSE

WALTER J. KRASNIEWSKI, Bankruptcy Judge.

This matter is before the Court upon Rick-etts & Onda’s (“R & 0”) interim application for compensation and reimbursement of expenses as counsel for Marion Carefree Limited Partnership (“MCLP”). The United States Trustee has objected to the allowance of certain professional fees and the reimbursement of certain expenses. The United States of America (“HUD”), on behalf of the Department of Housing and Urban Development, has objected to disbursement of interim fees and expenses from MCLP’s estate. R & 0 seeks compensation in the amount of $13,912.15 and reimbursement of expenses in the amount of $1,737.84. Upon consideration of R & O’s interim fee application (the “Application”), the Court finds that R & 0 should be allowed interim professional fees and reimbursement of expenses of $12,699.60 and $1,737.84, respectively. The Court further finds that such interim fees and expenses should not be disbursed from MCLP’s estate at the present time, subject to further order of this Court.

FACTS

Summary of Professional Fees Requested by R & 0

R & 0 seeks the following professional fees:

Professional Hours Rate Total Fees

RTR 20.41 $175.00 $3,571.75

MTS 57.36 $135.00 $7,743.60

NJV 10.92 $110.00 $1,201.20

TSF 19.75 $ 60.00 $1,185.00

SKF 3.51 $ 60.00 $ 210.60

Total Professional Fees Requested $13,912.15

R & 0 farther seeks reimbursement of expenses in the amount of $1,737.84.

DISCUSSION

The Court concludes that the Application contains actual, necessary professional fees properly attributable to MCLP’s bankruptcy estate in the amount of $12,699.60. The Court further concludes that the Application contains reimbursement of expenses which were actual and necessary to MCLP’s bankruptcy estate in the amount of $1,737.84.

Total Non-compensable Time $ 1,212.55

Total Professional Fees Properly Attributable to MCLP’s Estate $12,699.60

The Court’s Authority to Review R & O’s Fee Application

“The court is asked to approve an expenditure which will, to the extent allowed, reduce the debtor’s estate. Therefore, it is clearly within the court’s authority to review the reasonableness of the request.” In re Ohio Ferro-Alloys Corp., 96 B.R. 795, 799 (Bankr.N.D.Ohio 1989) (citations omitted); see also In re Busy Beaver Building Centers, Inc., 19 F.3d 833, 840-845 (3rd Cir.1994) (bankruptcy court has the power and the duty to review fee applications, notwithstanding the absence of objections); In re (JVC, Inc., 120 B.R. 874, 876 (Bankr.N.D.Ohio 1990) (withdrawal of objection to professional fees does not preclude court from determining the reasonableness of the professional fees requested). Burden of Proof

R & O bears the burden of proof on its entitlement to professional fees by the preponderance of the evidence.

The Instant Fee Application

“‘[T]he party who seeks payment must keep records in sufficient detail that a neutral judge can make a fair evaluation of the time expended, the nature and need for the service, and the reasonable fees to be allowed.’” In re Navis Realty, Inc., 126 B.R. 137, 142 (Bankr.E.D.N.Y.1991) (quoting Hensley v. Eckerhart, 461 U.S. 424, 441, 103 [263]*263S.Ct. 1933, 1943, 76 L.Ed.2d 40 (1983) (Burger, Chief Justice, concurring)); see In re Convent Guardian Corp., 103 B.R. 937, 939 (Bankr.N.D.Ill.1989) (stating that “[t]he [c]ourt will not assume any expense is necessary”) (citations omitted); In re Affinito & Son, Inc., 63 B.R. 495, 498 (Bankr.W.D.Pa.1986) (“[the] [c]ourt should not be ... expected to indulge in extensive labor to justify a fee for an attorney who has not done so”) (citation omitted). A number of R & O’s time entries, although providing some detail, do not provide the Court with adequate information to determine the nature of the services performed and the need for such services. Such entries do not satisfy R & O’s burden.

Further, certain of the items charged by R & O apparently represent services which are not within the scope of R & O’s employment as counsel for MCLP’s estate. In re By-Rite Oil Co., 87 B.R. 905, 915 (Bankr.E.D.Mich.1988).

Therefore, the following professional fees are noncompensable:

Total Hours Rate Description

$ 8.80 $110.00 ASC Telephone call to J. Kennedy re progress of assignment of interest in Debtor and status of review of draft Plan submitted by Debtor 12/3/93

$ 29.75 $175.00 RTR Telephone call from J. Kennedy re Management Agreement and Plan 12/6/93 b-tH

$175.00 RTR Telephone call from T. Stewart re meeting with limited partners to further Plan 1/7/94 lO Oi <M H-i -3

$135.00 MTS Attention to creditors issues 1/11/94 © OO © TH © OO

$135.00 $135.00 MTS Attention to management agreement and review of same © ©

33.75 $175.00 RTR Telephone conference with T. Stewart 1/18/94 to OX

18.70 $110.00 NJV Conference with J. Kennedy re review of debtors proposed plan of reorganization 1/20/94

29.75 $175.00 RTR Telephone call to T. Stewart re status of negotiations with limited partners 1/20/94 t — I

44.55 $135.00 MTS Attention to case matters 1/27/94 CO CO

22.95 $135.00 MTS Telephone call from T. Stewart re status of discussions with ltd partners 1/28/94 5

22.95 $135.00 MTS Telephone call from J. Kennedy re issues 1/31/94 Íh

22.95 $135.00 MTS Work on Marion Carefree 2/1/94

10.80 $135.00 MTS Review John Kennedy’s letter re plan 2/1/94 ©

33.75 $135.00 MTS Conference with RTR re status. Telephone call from John Kennedy re plan. 2/2/94 to ax

29.75 $175.00' RTR Review letter from J. Kennedy re Plan of Reorganization 2/2/94 fc— 1 — 1

14.00 $175.00 RTR Telephone call from T. Stewart 2/8/94 OO ©

44.55 $135.00 MTS Preparation of exchange agreement 2/9/94 CO CO

10.80 $135.00 MTS Telephone call from John Kennedy re plan & disclosure statement 2/9/94 ©

14.00 14.00 $175.00 $175.00 RTR Follow up re proposal from T. Stewart 2/9/94 RTR Review letter from J. Kennedy 2/11/94 © ©

$135.00 MTS Telephone call to G. Humphrey re potential acquisition of GP interest 2/14/94 © OO © t-H © OO

$135.00 MTS Review management contract LO CO IO lO ^ ¡-^

437.50 2.50 $175.00 RTR Conference call with T. Stewart and Carl Fry re Plan and Management Agreement 2/14/94

10.80 .08 $135.00 MTS Conference re status of discussions with G. Humphrey 2/16/94

57.75 .33 $175.00 RTR Telephone call from G. Humphrey re review of documents 2/16/94

[264]*264Total Description Hours Rate

TSF Telephone call to Secretary of State re corporate status of Westminster. Draft exchange option agreement 2/17/94 .75 $ 60.00 © o

RTR Finalization of letter to G.

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Related

Hensley v. Eckerhart
461 U.S. 424 (Supreme Court, 1983)
Matter of Ohio Ferro-Alloys Corp.
96 B.R. 795 (N.D. Ohio, 1989)
Matter of Affinito & Son, Inc.
63 B.R. 495 (W.D. Pennsylvania, 1986)
In Re Convent Guardian Corp.
103 B.R. 937 (N.D. Illinois, 1989)
In Re CVC, Inc.
120 B.R. 874 (N.D. Ohio, 1990)
Matter of Navis Realty, Inc.
126 B.R. 137 (E.D. New York, 1991)
In Re Vernon Sand & Gravel, Inc.
109 B.R. 255 (N.D. Ohio, 1989)
In Re Mobile Air Drilling Co., Inc.
53 B.R. 605 (N.D. Ohio, 1985)
In Re By-Rite Oil Co.
87 B.R. 905 (E.D. Michigan, 1988)

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Bluebook (online)
171 B.R. 261, 1994 Bankr. LEXIS 1184, 1994 WL 457175, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marion-carefree-ltd-partnership-ohnb-1994.