In re Parrilla

530 B.R. 1, 2015 Bankr. LEXIS 540, 2015 WL 779621
CourtUnited States Bankruptcy Court, D. Puerto Rico
DecidedFebruary 23, 2015
DocketCASE NO. 14-01951
StatusPublished
Cited by11 cases

This text of 530 B.R. 1 (In re Parrilla) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Parrilla, 530 B.R. 1, 2015 Bankr. LEXIS 540, 2015 WL 779621 (prb 2015).

Opinion

OPINION'AND ORDER

Enrique S. Lamoutte, United States Bankruptcy Judge

This case is before the court upon the Chapter 13 Trustee’s (hereinafter referred to as the “Trustee”) Opposition to Application for Compensation (Docket No. 47) arguing that the compensation for the Debtors’ counsel should be limited to the flat fee of $3,000 pursuant to P.R. LBR ' 2016-1 (f) because the services provided by counsel are within the services expected to be provided under the flat fee pursuant to P.R. LBR 2016-1 (f)(2); or, in the alterna-, five, that the compensation be reduced to the amount of $3,823.50. The Trustee objects to certain entries due to the following: (1) the entries relate to charges for clerical or secretarial tasks which are not compensable because they are considered as part of applicant’s overhead expenses; [4]*4and (2) some of the entries involve services of clerical or secretarial nature that are being charged at paralegal rate. Thé Law Firm (hereinafter referred to as the “Applicant” or “Movant”) that represents the Debtors in this case filed its Reply to “Trustee’s Opposition to Application for Compensation” (Docket No. 62) alleging as follows: (i) the legal services rendered in excess of the flat fee were for the benefit of the Debtors and should be compensated in conformity with 11 U.S.C. § 330, the lodestar analysis and the text of P.R. LBR 2016-l(a)(4)(C); (ii) the Trustee’s position is' that regardless of the amount of hours dedicated to the pre-confirmation stage of a Chapter 13 case, if the services rendered are included in the list of responsibilities enumerated in P.R. LBR 2016 — 1(f)(2), then the fees requested must be limited to the $3,000 flat fee; (iii) the services rendered by the paralegal personnel were performed for the direct benefit of the Debtors and thus, are com-pensable; (iv) the work performed by the attorneys is to be compensated at the attorney hourly rate; (v) the Trustee’s opposition objected with some specificity the amount of $969. No objection has been filed for an amount in excess of $969. In the alternative, the Movant requests that the court approve the payment of the non-objected portion of the application which totals $3,823.50; (vi) there has been no lumping, duplication of services, or services vaguely described; and (vii) the Debtors were fully informed of and agreed from the outset of the case to the Applicant’s compensation and procedure and terms. For the reasons set forth below, the application is granted in part and denied in part.

Jurisdiction

The Court has jurisdiction pursuant to 28 U.S.C. §§ 1334(b) and 157(a). This is a core proceeding pursuant to 28 U.S.C. §§ 157(b)(2)(A), (B). Venue of this proceeding is proper under 28 U.S.C. §§ 1408 and 1409.

Facts and Procedural Background

The Debtors filed a bankruptcy petition under Chapter 13 of the Bankruptcy Code on March 14, 2014. The Debtors stated in the Disclosure of Compensation of Attorney for Debtors that the Applicant has agreed to accept for legal services the amount of $3,000, of which $200 were received prior to the filing of the statement, and that the balance due is in the amount of $2,800. In line items # 6 and # 7, which detail the legal services which the attorney has agreed to render as part of the bankruptcy ease, the Movant discloses as follows:

“In return for the above disclosed fee, I have agreed to render legal services for all aspects of the bankruptcy case, including: . '
(a) Analysis of the debtor’s financial situation, and rendering advice to the debtor in determining whether to file a petition in bankruptcy;
(b) Preparation and filing of any petition, schedules, statement of affairs and plan which may be required;
(c) Representation of the debtor at the meeting of creditors and confirmation hearing, and any adjourned hearings thereof;
(d) [Other provisions as needed]
The fee agreement between [Almeida & Davila, PSC — Law Firm] and the debt- or^) provides that a flat fee of $3,000 is accumulated in services provided at the regular hourly rates of $200.00 for services performed by Enrique M. Almeida and Zelma Davila Carrasquillo. Matters attended by paralegal staff will be charged at the rate of $85 per hour, and services of in-house accountants will be charged at the rate of $100 per hour. Services of associate attorneys will be [5]*5charged at the rate of $175' per hour. Expenses will be charged at their price/ cost. Any work in excess of the flat fee agreed to will be billed through an application for compensation to be filed with the Court for its approval. This disclosure should be construed in harmony with 11 U.S.C. sec. 330(a)(4)(B), rules, and all applicable orders.
By agreement with the debtor(s), the above disclosed-fee does not include the following service: This agreement does not contemplate any work in local state courts, administrative courts, or any other forum other than the .Bankruptcy Court. Adversary proceedings and appeals are also outside the scope of this agreement with the debtor(s).”

On March 14, 2014, the Debtors filed their proposed Chapter 13 plan of reorganization (Docket No. 2). The 341 meeting was held and closed on April 16, 2014 (Docket Nos. 6 & 17). The Trustee’s report of action taken at the meeting of creditors listed the following as the basis for the Trustee’s objection to confirmation: (i) Debtors have to correct their postal address in-the voluntary petition; (ii) joint Debtor has to clarify her interest over the inheritance property because it does not match the Trustee’s liquidation value analysis. The mortgage payoff balance must be provided in order to review the final liquidation value; (in) pending to submit insurance quote to Reliable’s collateral; (iv) joint Debtor does not receive Christmas bonus; (v) joint Debtor’s income of 2nd half of January 2014 is missing; and (vi) Debtor’s income was not submitted (6 months & 60 days) (Docket No. 17).

On May 5, 2014, the Trustee filed a Motion to Dismiss pursuant to 11 U.S.C. §§ 521 and 1325 (Docket No. 18) premised upon the following: (i) amended voluntary petition to correct Debtors’ postal address has not been filed; (ii) amended Schedule B to clarify joint Debtor’s interest over the inheritance property, given that it does not coincide with Trustee’s liquidation value analysis has not been filed.

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Cite This Page — Counsel Stack

Bluebook (online)
530 B.R. 1, 2015 Bankr. LEXIS 540, 2015 WL 779621, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-parrilla-prb-2015.