UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION ) ) Case No. 23bk00550 ) MIA PROCESSING LLC, ) Chapter 7 Debtor. ) . ) Judge Timothy A. Barnes
FINDINGS OF FACT AND CONCLUSIONS OF LAW IN SUPPORT OF ORDER AWARDING TO GUTNICKI LLP, ATTORNEYS FOR TRUSTEE, FOR ALLOWANCE AND PAYMENT OF FIRST INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES TOTAL FEES REQUESTED: $14,605.00 TOTAL COSTS REQUESTED: $251.18 TOTAL FEES REDUCED: $ 560.00 TOTAL COSTS REDUCED: $ 0.00 TOTAL FEES ALLOWED: $14,045.00 ‘TOTALCOSTS ALLOWED: $ 251.18 TOTAL FEES AND COSTS ALLOWED: $ 14,296.18 The attached time and expense entries have been underlined to reflect disallowance in whole or in part. The basis for each disallowance is reflected by numerical notations that appear on the left of each underlined entry. ‘The numerical notations correspond to the enumerated paragraphs below. (1) Lumping — TOTAL of disallowed amounts (10% of affected entries): $ 105.00 ‘The Court may impose a ten percent penalty on entries that appear to be “lumping.” ‘The Court will reduce each entry marked as such per the penalty. I” re Wildman, 72 B.R. 700, 709 (Bankr. N.D. Ill. 1987) (Schmetterer, J.) (‘Applicants may not circumvent the minimum time requirement or any of the requirements of detail by “lumping” a bunch of activities into a single entry. [citation omitted]. Each type of service should be listed with the corresponding specific time allotment.”). (2) Clerical Work Not Compensable — TOTAL of disallowed amounts: $ 455.00 The court disallows the compensation of clerical or stenographic employees of the professional for the performance of routine clerical or administrative activities in the normal course of the professional’s business, such as photocopying, secretarial work, or routine filing. Such activities are not in the nature of professional services and must be absorbed by the applicant’s firm as an overhead expense. In re Dimas, LLC, 357 B.R. 563, 577 (Bankr. N.D. Cal. 2006) (citing Missouri v. Jenkins, 491 U.S. 274, 288 n. 10 (1989)); see also In re Chellino, 209 B.R. 106, 114 (Bankr. C.D. TL. 1996) (Paralegal, but not “clerk” services entitled to compensation at an hourly rate; clerk activities are overhead of the professional); Sovza v. Miguel, 32 F.3d 1370, 1375 (9th Cir. 1994) (Trustee not
entitled to rembursement or compensation of overhead expenses such as secretarial, stenographic, clerical, and routine messenger services).
Dated: February 14, 2024 S => □ ‘TimothyA. - United States Bankruptcy Judge
Telephone: (847) 933-9280 Facsimile: (847) 933-9285
Zane Zielinski, Chapter 7 Trustee January 15, 2024 6336 North Cicero Avenue, Suite 201 ; Chicago, IL 60646 Invoice # 33181 Zane Zielinski In Reference To: MIA Processing
Professional Services Hours — Amount 6/22/2023 □□□ □ Discussions with Zane re appointment as Trustee for MIA 0.80 $380.00 and next steps. 6/28/2023 □□□ Hearing on MIA (.60); review pending motion to sell (.40) 1.00 $475.00 6/29/2023 MSG Review Debtor's counsel's motion for compensation (.40); 0.70 $332.50 discussion with Trustee re same (.30) 7/3/2023 BG Editing motions to employ bankruptcy counsel and 1.00 $175.00 accountant; filing motions with the Court; sending courtesy copies via regular mail to debtor; updating and maintaining docket to ensure timely compliance with deadlines and requirements for court hearings. MSG _ Finalize retention motions for Gutnicki (.60) and Lasko (.60). 1.20 $570.00 7/10/2023 MSG Review Debtors list of post petition debts (.20); discussion 0.50 $237.50 with Trustee re status of case and pending motion to sell (.30) 7/12/2023 BG — Updating and maintaining docket to ensure timely 0.20 $35.00 compliance with deadlines and requirements for court hear earings. MSG Hearing on claim of Joe Burman and objection to claim. 0.50 $237.50 7/19/2023 BG — Updating and maintaining docket to ensure timely 0.20 $35.00 compliance with deadlines and requirements for court erical hearings. MSG Hearing on motion to sell and Burman objection and 0.70 $332.50 retention motions.
Zane Zielinski, Chapter 7 Trustee Page 2
Hours _ Amount 7/29/2023 MSG _ review of Chapter 11 Trustee report (.20); discussion with 0.60 $285.00 Trustee re motion to sell property (.40)
MSG Prepare amended motion to sell and proposed order 1.30 $617.50
Lumping iene
MSG _ Draft motion for sanctions vs Malevitis and Lucia (1.0); 140 $665.00 discussions with Lucia re issues with Debtor's property on leased space (.40)
MSG Hearing on Sanctions. 0.60 $285.00
cool ih eins ont ons rot MSG Hearing on sanctions motion and motion to sell. 1.00 $475.00 8/28/2023 Review Greg Stern supplement to application for 0.40 $190.00 compensation.
Clerical sconce ih eins ont os cot
Zane Zielinski, Chapter 7 Trustee Page 3
Hours _ Amount 8/30/2023 MSG_ Hearing on sanctions and compensation for Debtor's counsel. 0.90 $427.50
MSG_ Work with Stern on order for compensation (.20); Status on 0.70 $332.50 Burman objection (.50)
9/11/2023 BG _ Sending draft order to opposing counsel. 0.20 $35.00 MSG _ Review Burman complaint. 0.50 $237.50 9/13/2023 MSG_ Call with Dan Dawson and Trustee re retention as special 0.70 $332.50 counsel. 9/15/2023 MSG _ Discussion with Malevitis re sanctions order (.20); draft 140 $665.00 motion for turnover (.80); discussion with Malevitis re turnover of documents (.40)
Lumping ieee MSG _ Finalize Motion for turnover of documents (.70); discussion 0.90 $427.50 with Trustee re same (.20) 9/20/2023 MSG _ Discussion with Malevitis re proposed sanctions order 0.30 $142.50
MSG_ Work on proposed order re sanctions motion (.30); finalize 0.70 $332.50 order for turnover (.40).
Zane Zielinski, Chapter 7 Trustee Page 4
Hours _ Amount 9/27/2023 BG Updating and maintaining docket to ensure timely 0.20 $35.00 compliance with deadlines and requirements for court 2) Clerical hearings. MSG _ Review of Dawson's retention motion. 0.40 $190.00 MSG _ Hearing on turnover motion and sanctions motion (.70); 140 $665.00 finalize order on turnover (.40); discussion with Malevitis re terms of turnover order (.30) 9/29/2023 MSG Call with Stern re compensation motion. 0.40 $190.00 MSG _ Discussion with Malevitis re turnover of documents. 0.50 $237.50 10/3/2023 BG _ Editing motion and proposed order; merging motion and 0.90 $157.50 exhibits together; filing motion and proposed order with the Lumpi Court; sending courtesy copies to debtor; updating and ping maintaining docket to ensure timely compliance with deadlines and requirements for court hearings. MSG _ Finalize motion to retain Dawson as special counsel. 0.40 $190.00 MSG _ Call with Dawson and Mike Desmond re causes of action. 0.70 $332.50 10/11/2023 MSG _ Discussion with Trustee re K-1's (.30); work on transfer of 0.70 $332.50 documents to Malevitis (.20); discussions with Malevitis re same (.20) 10/12/2023 MSG _ Review Burman preliminary objection (.30); call with 0.70 $332.50 Burman counsel same (.20); call with Trustee re issues with Burman claim (.20) 10/19/2023 MSG _ Discussion with Trustee re K-1 issue (.20); call with Dawson 0.80 $380.00 re causes of action (.40); calls with former employee re K-1's (.20) 11/8/2023 BG — Updating and maintaining docket to ensure timely 0.40 $70.00 compliance with deadlines and requirements for court hearings.
Zane Zielinski, Chapter 7 Trustee Page 5
Hours Amount 1111//99//22002233 BBGG UUpppddaattiinnggg aanndd mmaaiinnttaaiinniinnggg ddoocckkeett ttoo eennssuurree ttiimmeellyyy 00..4400 $$7700..0000 ccoommppplliiaannccee wwiitthh ddeeaaddlliinneess aanndd rreeqquuiirreemmeennttss ffoorr ccoouurrtt (2) Clerical hheeaarriinnggss..
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UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION ) ) Case No. 23bk00550 ) MIA PROCESSING LLC, ) Chapter 7 Debtor. ) . ) Judge Timothy A. Barnes
FINDINGS OF FACT AND CONCLUSIONS OF LAW IN SUPPORT OF ORDER AWARDING TO GUTNICKI LLP, ATTORNEYS FOR TRUSTEE, FOR ALLOWANCE AND PAYMENT OF FIRST INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES TOTAL FEES REQUESTED: $14,605.00 TOTAL COSTS REQUESTED: $251.18 TOTAL FEES REDUCED: $ 560.00 TOTAL COSTS REDUCED: $ 0.00 TOTAL FEES ALLOWED: $14,045.00 ‘TOTALCOSTS ALLOWED: $ 251.18 TOTAL FEES AND COSTS ALLOWED: $ 14,296.18 The attached time and expense entries have been underlined to reflect disallowance in whole or in part. The basis for each disallowance is reflected by numerical notations that appear on the left of each underlined entry. ‘The numerical notations correspond to the enumerated paragraphs below. (1) Lumping — TOTAL of disallowed amounts (10% of affected entries): $ 105.00 ‘The Court may impose a ten percent penalty on entries that appear to be “lumping.” ‘The Court will reduce each entry marked as such per the penalty. I” re Wildman, 72 B.R. 700, 709 (Bankr. N.D. Ill. 1987) (Schmetterer, J.) (‘Applicants may not circumvent the minimum time requirement or any of the requirements of detail by “lumping” a bunch of activities into a single entry. [citation omitted]. Each type of service should be listed with the corresponding specific time allotment.”). (2) Clerical Work Not Compensable — TOTAL of disallowed amounts: $ 455.00 The court disallows the compensation of clerical or stenographic employees of the professional for the performance of routine clerical or administrative activities in the normal course of the professional’s business, such as photocopying, secretarial work, or routine filing. Such activities are not in the nature of professional services and must be absorbed by the applicant’s firm as an overhead expense. In re Dimas, LLC, 357 B.R. 563, 577 (Bankr. N.D. Cal. 2006) (citing Missouri v. Jenkins, 491 U.S. 274, 288 n. 10 (1989)); see also In re Chellino, 209 B.R. 106, 114 (Bankr. C.D. TL. 1996) (Paralegal, but not “clerk” services entitled to compensation at an hourly rate; clerk activities are overhead of the professional); Sovza v. Miguel, 32 F.3d 1370, 1375 (9th Cir. 1994) (Trustee not
entitled to rembursement or compensation of overhead expenses such as secretarial, stenographic, clerical, and routine messenger services).
Dated: February 14, 2024 S => □ ‘TimothyA. - United States Bankruptcy Judge
Telephone: (847) 933-9280 Facsimile: (847) 933-9285
Zane Zielinski, Chapter 7 Trustee January 15, 2024 6336 North Cicero Avenue, Suite 201 ; Chicago, IL 60646 Invoice # 33181 Zane Zielinski In Reference To: MIA Processing
Professional Services Hours — Amount 6/22/2023 □□□ □ Discussions with Zane re appointment as Trustee for MIA 0.80 $380.00 and next steps. 6/28/2023 □□□ Hearing on MIA (.60); review pending motion to sell (.40) 1.00 $475.00 6/29/2023 MSG Review Debtor's counsel's motion for compensation (.40); 0.70 $332.50 discussion with Trustee re same (.30) 7/3/2023 BG Editing motions to employ bankruptcy counsel and 1.00 $175.00 accountant; filing motions with the Court; sending courtesy copies via regular mail to debtor; updating and maintaining docket to ensure timely compliance with deadlines and requirements for court hearings. MSG _ Finalize retention motions for Gutnicki (.60) and Lasko (.60). 1.20 $570.00 7/10/2023 MSG Review Debtors list of post petition debts (.20); discussion 0.50 $237.50 with Trustee re status of case and pending motion to sell (.30) 7/12/2023 BG — Updating and maintaining docket to ensure timely 0.20 $35.00 compliance with deadlines and requirements for court hear earings. MSG Hearing on claim of Joe Burman and objection to claim. 0.50 $237.50 7/19/2023 BG — Updating and maintaining docket to ensure timely 0.20 $35.00 compliance with deadlines and requirements for court erical hearings. MSG Hearing on motion to sell and Burman objection and 0.70 $332.50 retention motions.
Zane Zielinski, Chapter 7 Trustee Page 2
Hours _ Amount 7/29/2023 MSG _ review of Chapter 11 Trustee report (.20); discussion with 0.60 $285.00 Trustee re motion to sell property (.40)
MSG Prepare amended motion to sell and proposed order 1.30 $617.50
Lumping iene
MSG _ Draft motion for sanctions vs Malevitis and Lucia (1.0); 140 $665.00 discussions with Lucia re issues with Debtor's property on leased space (.40)
MSG Hearing on Sanctions. 0.60 $285.00
cool ih eins ont ons rot MSG Hearing on sanctions motion and motion to sell. 1.00 $475.00 8/28/2023 Review Greg Stern supplement to application for 0.40 $190.00 compensation.
Clerical sconce ih eins ont os cot
Zane Zielinski, Chapter 7 Trustee Page 3
Hours _ Amount 8/30/2023 MSG_ Hearing on sanctions and compensation for Debtor's counsel. 0.90 $427.50
MSG_ Work with Stern on order for compensation (.20); Status on 0.70 $332.50 Burman objection (.50)
9/11/2023 BG _ Sending draft order to opposing counsel. 0.20 $35.00 MSG _ Review Burman complaint. 0.50 $237.50 9/13/2023 MSG_ Call with Dan Dawson and Trustee re retention as special 0.70 $332.50 counsel. 9/15/2023 MSG _ Discussion with Malevitis re sanctions order (.20); draft 140 $665.00 motion for turnover (.80); discussion with Malevitis re turnover of documents (.40)
Lumping ieee MSG _ Finalize Motion for turnover of documents (.70); discussion 0.90 $427.50 with Trustee re same (.20) 9/20/2023 MSG _ Discussion with Malevitis re proposed sanctions order 0.30 $142.50
MSG_ Work on proposed order re sanctions motion (.30); finalize 0.70 $332.50 order for turnover (.40).
Zane Zielinski, Chapter 7 Trustee Page 4
Hours _ Amount 9/27/2023 BG Updating and maintaining docket to ensure timely 0.20 $35.00 compliance with deadlines and requirements for court 2) Clerical hearings. MSG _ Review of Dawson's retention motion. 0.40 $190.00 MSG _ Hearing on turnover motion and sanctions motion (.70); 140 $665.00 finalize order on turnover (.40); discussion with Malevitis re terms of turnover order (.30) 9/29/2023 MSG Call with Stern re compensation motion. 0.40 $190.00 MSG _ Discussion with Malevitis re turnover of documents. 0.50 $237.50 10/3/2023 BG _ Editing motion and proposed order; merging motion and 0.90 $157.50 exhibits together; filing motion and proposed order with the Lumpi Court; sending courtesy copies to debtor; updating and ping maintaining docket to ensure timely compliance with deadlines and requirements for court hearings. MSG _ Finalize motion to retain Dawson as special counsel. 0.40 $190.00 MSG _ Call with Dawson and Mike Desmond re causes of action. 0.70 $332.50 10/11/2023 MSG _ Discussion with Trustee re K-1's (.30); work on transfer of 0.70 $332.50 documents to Malevitis (.20); discussions with Malevitis re same (.20) 10/12/2023 MSG _ Review Burman preliminary objection (.30); call with 0.70 $332.50 Burman counsel same (.20); call with Trustee re issues with Burman claim (.20) 10/19/2023 MSG _ Discussion with Trustee re K-1 issue (.20); call with Dawson 0.80 $380.00 re causes of action (.40); calls with former employee re K-1's (.20) 11/8/2023 BG — Updating and maintaining docket to ensure timely 0.40 $70.00 compliance with deadlines and requirements for court hearings.
Zane Zielinski, Chapter 7 Trustee Page 5
Hours Amount 1111//99//22002233 BBGG UUpppddaattiinnggg aanndd mmaaiinnttaaiinniinnggg ddoocckkeett ttoo eennssuurree ttiimmeellyyy 00..4400 $$7700..0000 ccoommppplliiaannccee wwiitthh ddeeaaddlliinneess aanndd rreeqquuiirreemmeennttss ffoorr ccoouurrtt (2) Clerical hheeaarriinnggss.. 11/10/2023 MSG Review Order on Burman claim and briefing schedule (.20); 0.40 $190.00 call with Joe Cohen re same (.20) 11/15/2023 MSG Discussion with Zane and Dan Dawson re Malevitis 0.40 $190.00 documents (.20); call with Malevitis re document return (.20) 1/10/2024 MSG Court appearance for status on Burman claim objection 1.10 $522.50 (.70); review of filed agreed order (.20); discussion with Joe Cohen re final revisions to order (.20) MSG Draft fee application for Gutnicki (1.0); proposed order (.20) 1.50 $712.50 and cover sheet (.30) MSG Review of Lasko fee application (.30); prepare for filing and 0.90 $427.50 proposed order (.60) BG Drafting and editing notices of application for attorney. 0.50 $87.50 1/11/2024 BG Editing applications for fees. 0.20 $35.00 For professional services rendered 37.00 $14,605.00 Additional Charges : 8/1/2023 Postage Fee: Courtesy Copies of motion. $26.96 8/4/2023 Postage Fee: Courtesy copies of Amended Notice of Motion $20.67 10/12/2023 Online Payment [MKM]; Comet/Arrow Messenger Service, Picked up files from $203.55 John Malevitis in Burr Ridge IL to be delivered to Zane Zielinski in Chicago, IL Total additional charges $251.18 Total amount of this bill $14,856.18 Zane Zielinski, Chapter 7 Trustee Page 6
Legal Professional Summary Name Hours Rate Amount Barrett Goldflies, Paralegal 9.90 $175.00 $1,732.50 Miriam Stein Granek, Of Counsel 27.10 $475.00 $12,872.50