In re Nicole Gas Production, Ltd.

542 B.R. 204, 2015 Bankr. LEXIS 4209, 2015 WL 8735953
CourtUnited States Bankruptcy Court, S.D. Ohio
DecidedDecember 10, 2015
DocketCase No. 09-52887
StatusPublished
Cited by2 cases

This text of 542 B.R. 204 (In re Nicole Gas Production, Ltd.) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.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 Nicole Gas Production, Ltd., 542 B.R. 204, 2015 Bankr. LEXIS 4209, 2015 WL 8735953 (Ohio 2015).

Opinion

MEMORANDUM OPINION AND ORDER AWARDING FREDERICK RANSIER ATTORNEYS’ FEES AND EXPENSES INCURRED AS A RESULT OF CIVIL CONTEMPT

John E. Hoffman Jr., Unites States Bankruptcy Judge

I. Introduction

The Court previously held three individuals in civil contempt for commencing and continuing a state court action asserting claims belonging to the bankruptcy estate of Nicole Gas Production, Ltd. (“NGP”). Frederick L. Ransier, III (“Ransier”), the Chapter 7 trustee of NGP’s estate, requests an award of the reasonable attorneys’ fees and expenses he has incurred to date as a result of the contemptuous conduct. For the reasons explained below, the Court awards Ransier fees and expenses in the amount of $91,068.

II. Jurisdiction and Constitutional Authority

The Court has jurisdiction to hear and determine this contested matter under 28 U.S.C. §§ 157 and 1334 and the general order of reference entered in this district. This is a core proceeding. See 28 U.S.C. § 157(b)(2)(A) and (0).

The Court also has the constitutional authority to enter a final order awarding professional fees and costs incurred as a result of contemptuous conduct. See In re Brown, 511 B.R. 843, 848 (Bankr.S.D.Tex. 2014) (holding that bankruptcy courts have the constitutional authority to impose sanctions for contempt after Stern v. Marshall, — U.S. -, 131 S.Ct. 2594, 180 L.Ed.2d 475 (2011)); In re Green, No. 12-13410, 2014 WL 1089843, at *1 (Bankr.N.D.Ohio Mar. 19, 2014) (same); Schermerhom v. Centurytel, Inc. (In re Skyport Global Cornmc’ns), No. 08-36737-H4-11, 2013 [207]*207WL 4046397, at *41 (Bankr.S.D.Tex. Aug. 7, 2013) (same).

III. Procedural Background

Earlier in this case, Ransier filed a motion requesting that the Court enter an order directing Freddie Fulson (“Fulson”) and the attorneys who represented him in the state court action — Robert Sanders (“Sanders”) and James Lowe (“Lowe” and, together with Sanders and Fulson, the “Fulson Parties”) — to appear and show cause why they should not be held in civil contempt (the “Contempt Motion”) (Doc. 119). The Court held an evidentiary hearing on the issue of whether the Fulson Parties should be held in civil contempt (the “Contempt Hearing”). Following the Contempt Hearing, Fulson passed away, and his probate estate was substituted as the plaintiff in the state court case, effectively substituting his estate (the “Fulson Estate”) as a party in interest in this contested matter. See Docs. 188 & 190. The co-administrators of the Fulson Estate are Curtland H. Caffey and S. Brewster Randall, II, Esq. (the “Co-administrators”).

Based on the evidence presented at the Contempt Hearing, the Court entered an opinion and order (the “Contempt Opinion”) holding that the Fulson Parties “violated the automatic stay and were in contempt of Court when they commenced and continued the state court action.” In re Nicole Gas Prod., Ltd., 519 B.R. 723, 725 (Bankr.S.D.Ohio 2014). The Contempt Opinion also established a procedure for the Court to determine the amount of damages the NGP estate sustained as a. result of the Fulson Parties’ contemptuous conduct. In accordance with this procedure, Ransier filed a statement of the time and expenses incurred by professionals from his law firm, Vorys, Safer, Seymour and Pease LLP (“Vorys”), as of the date the statement was filed (the “First Fee Statement”), together with a supporting affidavit (the “Ransier Affidavit”) (Doc. 200).1 Lowe filed an objection to the First Fee Statement (the “Lowe Objection”) (Doc. 201), and Sanders filed an objection as well (the “Sanders Objection”) (Doc. 202). Ransier then filed a combined reply to the Lowe Objection and the Sanders Objection (the “Ransier Reply”) (Doc. 206).

Although the Court provided Sanders, Lowe and the Co-administrators with notice of the entry of the Contempt Opinion, Docs. 196 & 199, Ransier gave notice of the filing of the First Fee Statement to Sanders and Lowe, but not to the Co-administrators. After the Court made Ransier aware of the need to provide the Co-administrators with- notice of the First Fee Statement, he served it on them under the terms of an agreed order among the Co-administrators, Sanders and Lowe (the “Agreed Order”) (Doc. 246). The Agreed Order established a schedule under which the Co-administrators filed an objection to the First Fee Statement (the “Co-administrators Objection”) (Doc. 248) and Ransier filed a reply to their objection (Doc. 250). The Court will refer to Lowe, Sanders and the Co-administrators collectively as the “Objectors.”

The Court held a hearing to consider the amount of fees and expenses that should [208]*208be awarded to Ransier (the “Fee Hearing”). At the Fee Hearing, Ransier testified in support of the fees and expenses charged by the Vorys professionals who rendered the legal services he asserted were necessary to respond to the Fulson Parties’ contemptuous conduct. During the Fee Hearing, the Court admitted the following documents into evidence without objection: (1) Ransier’s Exhibit 1 (the First Fee Statement), Exhibit 1A (the Ransier Affidavit) and Exhibit 2 (a document setting forth Ransier’s expenses); and (2) Lowe’s Exhibit A (a version of the First Fee Statement annotated with paragraph numbers 1 through 303).

At the conclusion of the Fee Hearing, the Court asked Ransier to file (1) an affidavit explaining Vorys’s billing policy with respect to computerized legal research and (2) a supplemental statement of the fees and expenses incurred since the First Fee Statement was filed. On October 6, 2015, Yorys attorney Brenda Bowers filed an affidavit (the “Bowers Affidavit”) in support of a statement of the time and expenses incurred since the filing of the First Fee Statement (the “Second Fee Statement”) (Doc. 252). On November 6, 2015, at the Court’s request, the parties filed a Notice of Submission of Reviewed and Numbered Supplemental Fee Statement Pursuant to Contempt Order (Doc. 253), attaching a copy of the Second Fee Statement annotated with paragraph numbers 304 through 444).2

The Court will assume that the Objectors oppose Ransier’s recovery of the fees and expenses set forth in the Second Fee Statement on the same grounds that they objected to the First Fee Statement. Accordingly, the Court will deem the Sanders, Lowe and Co-administrators’ Objee-tions to be objections to both the First and Second Fee Statements.

IV. Findings of Fact

In this opinion, the Court uses defined terms contained in the Contempt Opinion and incorporates by reference the findings of fact set forth in the Contempt Opinion. Based on the evidence introduced during the Contempt Hearing and the Fee Hearing, including the documentary evidence and the testimony presented, and having found Ransier to be a highly credible witness, the Court makes the following additional findings of fact.

A. The Total Amount of Fees and Expenses Requested

In the First Fee Statement, Ransier attributed a total of $68,476.50 of fees and $3,788.48 of expenses to the Fulson Parties’ contempt.

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Related

Lowe v. Bowers (In Re Nicole Gas Prod., Ltd.)
916 F.3d 566 (Sixth Circuit, 2019)
In re: Nicole Gas Prod.
Sixth Circuit, 2018

Cite This Page — Counsel Stack

Bluebook (online)
542 B.R. 204, 2015 Bankr. LEXIS 4209, 2015 WL 8735953, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-nicole-gas-production-ltd-ohsb-2015.