In re Prudhomme

152 B.R. 81, 1992 Bankr. LEXIS 2388, 1992 WL 437187
CourtDistrict Court, W.D. Louisiana
DecidedNovember 24, 1992
DocketBankruptcy No. 91BK-81053-A11
StatusPublished

This text of 152 B.R. 81 (In re Prudhomme) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Prudhomme, 152 B.R. 81, 1992 Bankr. LEXIS 2388, 1992 WL 437187 (W.D. La. 1992).

Opinion

REASONS FOR DECISION

HENLEY A. HUNTER, Bankruptcy Judge.

This matter is before the Court on the First and Final Application for Compensation by Mr. Robert L. Royer as Attorney for the Debtor. Objections to the application were filed by the Farm Credit Bank of Texas and by the United States Trustee. This is a Core Proceeding pursuant to 28 U.S.C. § 157(b)(2). This Court has jurisdiction pursuant to 28 U.S.C. § 1334 and by virtue of the reference by the District Court pursuant to Local District Court Rule 22.01 incorporated into Local Bankruptcy Rule 1.2. Ño party at interest has sought to withdraw the reference to the bankruptcy court, nor has the District Court done so on its own motion. This Court makes the following findings of fact and conclusions of law in accordance with Federal Rule of Bankruptcy Procedure 7052. Pursuant to these Reasons, the objections are overruled in part and sustained in part and compensation and expenses are fixed and approved as specified herein.

FINDINGS OF FACT AND CONCLUSIONS OF LAW

A. Background

Daisy Prudhomme filed a voluntary petition under Chapter 11 on July 30, 1991. This case is closely related to the case of John and Kathleen Batten who filed a voluntary petition under Chapter 11 on October 15, 1991. Ultimately, plans were confirmed in both cases filed on behalf of the Farm Credit Bank of Texas (“FCB”). This [83]*83Court has filed extensive written opinions in both cases. On January 31, 1992, written reasons were assigned relating to the Motion of the Farm Credit Bank for Relief from the Automatic Stay in the Batten case. On February 10, 1992, written reasons were assigned denying approval of FCB’s Disclosure Statement in the Prud-homme case. On June 10, 1992, written reasons were assigned in the Batten case denying approval of the Debtors’ Disclosure Statement. On October 8, 1992, written reasons were assigned in both cases concerning a discovery matter. The application presently before the Court covers the period of July 26, 1991, through May 22, 1992. Compensation is requested in the amount of $4,358.00 and expenses in the amount of $642.00. The application reflects the payment of a pre-petition retainer in the amount of $5000.00 which included a $500.00 filing fee by Riverside Farms Partnership.1

B.FCB’s Objection

FCB’s Objection to the application is based on a deposition taken in connection with motions pending against “Debtor’s lead counsel, the Arens Law Firm.”2 In that deposition, the applicant, Mr. Royer, is stated to have acknowledged that:

“A. He was retained only to handle filing of pleadings and preliminary motions ‘that didn’t amount to much,’ and to consult with and help the Arens Law Firm, but not to handle the ‘critical motions.’
B. He did not personally prepare any of the pleadings in the bankruptcy case.
C. He was not involved in planning the overall strategy of the case.
D. He was not involved in disclosure statement or plan development on behalf of the Debtor.
E. He did not always completely review all pleadings prepared by the Arens Law Firm prior to filing the same.
F. He did not perform an investigation of the factual or legal basis for any of the allegations of the pleadings he filed, even those he signed and with respect to which he had reservations.
G. The degree of his involvement herein lessened as the case progressed, to the extent that he ceased being present for the entirety of all hearings or for some hearings at all.
H. He did not discuss the contents of FCB’s proposed plan of reorganization with the Debtor prior to the hearing on confirmation.
I. He was not even aware of certain significant provisions contained in FCB’s Texas’ confirmed plan of reorganization until long after confirmation had occurred.”

FCB Objection filed Nov. 10, 1992.

Further, the objection asserts that counsel was contacted as early as 1988, and that this contact was not disclosed; that applicant failed to require debtor to file the Supplemental Schedule required by Local Rule 4.0; that applicants’ efforts did not confer any benefit to the estate beyond his attendance at the Section 341(a) meeting; and that attorney time is being charged for items that could have been provided by non-professional personnel.3

Further, the objection makes certain observations relating to the relevant factors for consideration under In the Matter of First Colonial Corp. of America, 544 F.2d 1291 (5th Cir.1977) as addressed in the application. Objector particularly notes that [84]*84it “... does not question that Applicant is a skilled bankruptcy attorney, but only whether he had occasion to and did exercise those skills in this case.” The objector also questions the necessity of expending “44.4 hours of attorney time for the services actually rendered.”

C.The United States Trustee’s Objection

This objection asserts that the application seeks a total compensation exceeding the amount for which it was actually noticed. It further asserts that it is not possible to determine if there is a duplication of services performed by the Arens Firm and that it is premature to analyze this issue.4

This objector also asserts that certain services could have been performed by nonprofessional personnel, particularly those performed on the dates of July 30, 1991, August 13, 1991, September 20, 1991, November 27,1991, and January 9, 1992. The United States Trustee maintains that such services constitute overhead. The objector likewise questions the ultimate benefit to the estate.

D.Applicable Law

It is well-settled that the applicant bears the burden of proof in a fee application. Matter of U.S. Gulf Corp., 639 F.2d 1197 (5th Cir.1981); Matter of Evangeline Refining Co., 890 F.2d 1312 (5th Cir.1989).

In making a determination on attorney fees, consideration by the Court of the factors announced by the Fifth Circuit in Matter of First Colonial Corp. of America, 544 F.2d 1291 (5th Cir.1977); and Johnson v. Georgia Highway Express, 488 F.2d 714 (5th Cir.1974), is required. These requirements are incorporated into the Local Rules. See Local Bankruptcy Rules, § 2.13.

An attorney is not a guarantor of the confirmation of a plan as a pre-requi-site to the entitlement to compensation. In re James Contracting Group, Inc., 120 B.R.

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152 B.R. 81, 1992 Bankr. LEXIS 2388, 1992 WL 437187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-prudhomme-lawd-1992.