In Re Vernon-Williams

377 B.R. 156, 2007 Bankr. LEXIS 4346, 2007 WL 2781839
CourtUnited States Bankruptcy Court, E.D. Virginia
DecidedSeptember 21, 2007
Docket19-10667
StatusPublished
Cited by4 cases

This text of 377 B.R. 156 (In Re Vernon-Williams) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Vernon-Williams, 377 B.R. 156, 2007 Bankr. LEXIS 4346, 2007 WL 2781839 (Va. 2007).

Opinion

*160 MEMORANDUM OPINION CONCERNING SUPPLEMENTAL FEES

STEPHEN C. ST. JOHN, Bankruptcy Judge.

These matters come before the Court upon remand from the United States District Court for the Eastern District of Virginia. On November 28, 2006, the United States District Court issued a Memorandum Opinion and Order in the above captioned matters which affirmed in part and reversed in part this Court’s Order Denying Supplemental Fees and Costs entered on April 27, 2006. Hearings were held on April 30, 2007. At the conclusion of the hearings, the Court took these matters under advisement. The Court has jurisdiction over these proceedings pursuant to 28 U.S.C. §§ 157(b)(2) and 1334(b). Venue is proper pursuant to 28 U.S.C. §§ 1408 and 1409. Upon consideration of the evidence and arguments presented by counsel at the hearings and the pleadings submitted, the Court makes the following findings of fact and conclusions of law.

I. PROCEDURAL HISTORY

The procedural history and applicable facts of these cases were thoroughly discussed in this Court’s previous Memorandum Opinion. See In re Vernon-Williams, 343 B.R. 766, 770-81 (Bankr.E.D.Va.2006), aff 'd in part, rev’d in part and remanded sub nom. The Boleman Law Firm, P.C. v. United States Trustee, 355 B.R. 548 (E.D.Va.2006). Thus, the Court will not repeat them here and recites the applicable procedural history which has occurred since the issuance of the Court’s previous Memorandum Opinion. 1

On May 8, 2006, counsel for The Bole-man Law Firm, P.C. (the “Boleman Firm”) timely filed the firm’s Notice of Appeal with the Court. On May 18, 2006, the Boleman Firm filed its Statement of Issues Presented, which listed ten issues for the United States District Court to determine on appeal. Those issues included whether this Court erred in holding “that funds received as reimbursement for costs were actually applied to fees” and in holding “that all requested costs must be denied despite relevant, trustworthy and persuasive evidence that costs were incurred in providing required services.” Statement of Issues Presented, filed by The Boleman Law Firm, P.C., May 18, 2006, Docket Entry 208, at 2. 2 In its brief filed in the District Court, the Boleman Firm stated with regard to the cost issues:

While Boleman initially appealed the Bankruptcy Court’s rulings denying both fees and costs, this brief — and the appeal — are limited solely to the issue of the Bankruptcy Court’s denial of supplemental attorneys’ fees. Boleman intends to submit additional cost information to the Bankruptcy Court, at least with respect to the remaining 122 cases....

Excerpt of Brief of Appellant, The Bole-man Law Firm, P.C., in Support of its Appeal from the United States Bankruptcy Court, filed May 2, 2007, Docket Entry 257. 3

*161 While the appeal was pending, this Court held a Status Hearing on June 23, 2006, with regard to the remaining cases associated with the United States Trustee’s First and Second Omnibus Objections to Supplemental Fee Applications of the Boleman Law Firm. As a result of the status hearing, the Court determined that it was appropriate to continue the remaining related cases generally pending the ruling of the appellate court. The Court also directed the Chapter 13 Trustee to maintain and reserve funds in his trust account for attorney fees in the related cases and allowed the Chapter 13 Trustee to proceed with the dismissal, closing, or conversion of cases, as appropriate.

On November 28, 2006, Chief United States District Judge James R. Spencer issued a Memorandum Opinion and Order affirming in part, reversing in part, and remanding the cases for further proceedings consistent with the opinion. The Boleman Law Firm, P.C. v. United States Trustee, 355 B.R. 548 (E.D.Va.2006). The District Court affirmed this Court’s denial of the Boleman Firm’s Motion to Quash and Overrule the Omnibus Objection, finding that the Court was significantly aided by the United States Trustee in exercising its duty to review the reasonableness of compensation. Id. at 551-52. With regard to the Boleman Firm’s contention that the Bankruptcy Court committed error by disallowing expert testimony by Bruce Matson, Esquire, the District Court found that this Court did not abuse its discretion in disallowing such testimony when it reasoned that because Mr. Matson served not as a Chapter 13 Trustee, but instead as a Chapter 7 Trustee, Mr. Mat-son did not possess the requisite experience in Chapter 13 bankruptcy cases. Id. at 552. The District Court found that the Bankruptcy Court committed error in holding that traditional contemporaneous time records must be present for the Court to perform the lodestar analysis and reversed and remanded the matters to the Bankruptcy Court. Id. at 553. In so holding the District Court reasoned that while “actual time records are the preferred starting point in the lodestar analysis ... [tjheir unavailability ... does not preclude further analysis — especially when, as in this case, it is undisputed that the work for which compensation is sought was performed.” Id. The Court further directed that “[s]ueh inadequate documentation is clearly ‘a proper basis for reducing a fee award.’ ” Id. (citing Hensley v. Eckerhart, 461 U.S. 424, 433, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983); Guidry v. Clare, 442 F.Supp.2d 282, 294 (E.D.Va.2006)). The District Court instructed that when a court is presented with inadequate time records, it must independently determine the reasonableness of the hours spent in the case by utilizing the twelve Johnson factors 4 and ‘“other consider *162 ations,’ ” and then reduce the fee award by either reducing the hours that are not adequately documented or by reducing the award by a fixed percentage. Id. (citing Guidry, 442 F.Supp.2d at 294).

On January 10, 2007, counsel for the Boleman Firm filed a Motion to Rescind Order Continuing Generally All Cases and for Order Allowing All Pending Supplemental Fee Applications with a Ten Percent (10%) Downward Adjustment or, in the Alternative, to Set All Pending Supplemental Fee Applications for Trial (“Motion to Rescind”).

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Bluebook (online)
377 B.R. 156, 2007 Bankr. LEXIS 4346, 2007 WL 2781839, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-vernon-williams-vaeb-2007.