In Re Smith

24 B.R. 266, 1982 Bankr. LEXIS 3194
CourtDistrict Court, District of Columbia
DecidedSeptember 30, 1982
DocketBankruptcy 79-00208
StatusPublished
Cited by8 cases

This text of 24 B.R. 266 (In Re Smith) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Smith, 24 B.R. 266, 1982 Bankr. LEXIS 3194 (D.D.C. 1982).

Opinion

MEMORANDUM OPINION

ROGER M. WHELAN, Bankruptcy Judge.

This memorandum opinion is a result of the remand from the United States District Court for the District of Columbia on January 13, 1981 of thirty-eight bankruptcy cases which were appealed to that Court when this Court on June 16, 1980 expunged the attorney fees because of the unethical behavior of counsel. 5 BR 92. The United States District Court order was appealed to the United States Court of Appeals but was dismissed on September 18, 1981, as premature.

The remand order of Judge Aubrey Robinson directed that this Court:

“Examine the value of the services performed by Appellant Devers in each of the thirty-eight cases. If unethical conduct on the part of the appellant diminished the value of his services to the client, the Judge should specifically explain the basis for that conclusion.” In re John Devers, 12 B.R. 140 at p. 142 (1981).

This Court will therefore review each of the thirty-eight cases individually.

In the review of fees in a case, the Court is bound to apply the proper legal standard and to follow certain procedures in the awarding of fees. In re Colonial Corp. of America, 544 F.2d 1291 (5th Cir.), cert. denied, 431 U.S. 904, 97 S.Ct. 1696, 52 L.Ed.2d 388 (1977). In determining what is a reasonable fee, many factors must be considered. In Johnson v. Georgia Highway Express Inc., 488 F.2d 714, 717-19 (5th Cir.1974), twelve factors are set forth for the judge to consider when awarding fees. Those factors to be weighed are:

“(1) The time and labor required; ...
(2) The novelty and difficulty of the questions; . . .
(3) The skill requisite to perform the legal service properly; ...
(4) The preclusion of other employment by the attorney due to acceptance of the case; ...
(5) The customary fee; ...
(6) Whether the fee is fixed or contingent; ...
(7) Time limitations imposed by the client or other circumstances; ...
(8) The amount involved and the results obtained; ...
(9) The experience, reputation and ability of the attorneys; ...
*268 (10) The “undesirability” of the case; . ..
(11) The nature and length of the professional relationship with the client;
(12) Awards in similar cases.”

Johnson v. Georgia Highway Express, Inc., supra, 488 F.2d at 717-19.

In accordance with the requirements of the Johnson factors, this Court will briefly summarize its analysis of the twelve factors in relation to each of the thirty-eight cases.

SHIRLEY ANN SMITH

Case No. 79-00208

Petition Filed: Oct. 19, 1979

This case is a simple Chapter 7 case. The time and labor required in this case is the normal amount for any simple Chapter 7. The issues involved in this case are not complex and the skills requisite to perform the legal services properly in this case were those minimal skills that any bankruptcy practitioner would be held to. The attorney was not precluded from other employment due to the acceptance of this case and the customary fee for a similar case in the year 1979-1980 was approximately $200-$450. Further, there do not appear to have been any serious time limitations imposed on the attorney in this case. The amount owed in this case was less than $6,000 and it was a no-asset case. The debtor did obtain her discharge on February 14, 1980.

The attorney at the time of the filing of the case had little experience in bankruptcy and his reputation had not been established. Further, his ability was below the standards that this Court requires for attorneys. For instance, no attorney disclosure statement was filed in this case. Under Bankruptcy Rule 219(b):

“Every attorney for a bankrupt, whether or not he applies for compensation, shall file with the court on or before the first date set for the first meeting of creditors, or at such time as the court may direct, a statement setting forth the compensation paid or promised him for the services rendered or to be rendered in connection with the case, the source of compensation so paid or promised, and whether the attorney has shared or agreed to share such compensation with any other person. The statement shall include the particulars of any such sharing or agreement to share by the attorney, but the details of any agreement for the sharing of his compensation with a member or regular associate of his law firm shall not be required.” [emphasis added]

If the disclosure statement is not timely filed, the attorney may not be compensated.

Second, on Schedule A-3, the attorney is listed as an unsecured creditor for the amount of $450. In Question 15(b), (c) of the petition, it states that nothing had been transferred to the attorney. However, it then states in the next answer that on October 26, 1979, $30.00 was transferred. In addition, it provides that the fee is to be paid by the debtor starting on November 23, 1979 by paying to the attorney $50.00 every other Friday until the fee is paid. Further, in the debtor’s response to the Questionnaire Propounded pursuant to 11 U.S.C. § 329 the attorney in response to Question No. 7 states that he was promised a $450.00 fee plus the $60.00 filing fee and that he received a $60.00 retainer on October 12, 1979, and also received $30 on October 26,1979 and November 9,1979, and that $50.00 was to be received every Friday starting November 23, 1979. In addition the attorney did not file an attorney disclosure statement in this case and therefore no fees should be allowed.

Further, the debtor’s attorney never attempted to avoid the lien on the furniture of the debtor pursuant to 11 U.S.C. § 522(f) or to exercise the debtor’s redemption rights under 11 U.S.C. § 722. In addition, this attorney was legal counsel for a profit-making corporation involved in debt planning and debt consolidation and received $300.00 a week from them. Further, this case was referred to him by that company.

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Cite This Page — Counsel Stack

Bluebook (online)
24 B.R. 266, 1982 Bankr. LEXIS 3194, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-smith-dcd-1982.