In Re Woerner

67 B.R. 685, 1986 Bankr. LEXIS 4922
CourtUnited States Bankruptcy Court, E.D. Pennsylvania
DecidedNovember 24, 1986
Docket17-17803
StatusPublished
Cited by11 cases

This text of 67 B.R. 685 (In Re Woerner) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Woerner, 67 B.R. 685, 1986 Bankr. LEXIS 4922 (Pa. 1986).

Opinion

OPINION

DAVID A. SCHOLL, Bankruptcy Judge.

Presently before the Court is an Application of Sprague, Thall & Creamer (hereinafter “the Creditor”), for attorneys’ fees and costs from Edward R. Woemer (hereinafter “the Debtor”), a former client, pursuant to an Opinion and Order entered on April 29,1985, by the Honorable William A. King, Jr., of this Court. Judge King’s Order found the Debtor in contempt for the Debtor’s violation of an Order of this Court by his failure to appear at the initial examination pursuant to Bankruptcy Rule 2004. The Creditor, a Philadelphia law firm, has acted pro se throughout its involvement in the Debtor’s bankruptcy case, 1 and has submitted an itemized statement of services and attorneys’ fees and costs (hereinafter “Statement”) requesting an award of $7,694.47. The Debtor filed numerous objections to the Statement. On September 25, 1986, this Court heard oral argument *686 and directed the filing of memoranda by both parties. For the reasons stated herein, we will only grant attorneys’ fees in the amount of $450.00 and costs in the amount of $46.25.

Judge King’s Order in its entirety states:

ORDERED that decision on the motion of creditor, Sprague, Levinson and Thall, 2 to vacate the Order of Discharge of September 11, 1984 is reserved pending disposition of proposed objections; and it is further
ORDERED that the motion of aforementioned creditor to have debtor, Edward R. Woerner, held in contempt is GRANTED; and it is further
ORDERED that Edward R. Woerner shall comply with the subpoena of November 7, 1984, pursuant to Bankruptcy Rule 2004, by appearing for examination at the offices of Sprague, Levinson and Thall, at a time and date set by the Court upon application of aforementioned creditor; and it is further
ORDERED that counsel for the creditor shall submit an itemized statement of services and attorneys’ fees and costs arising from the debtor’s failure to appear at the initial examination, and counsel for creditor shall serve one copy of the statement on counsel for the debtor. If there is no objection raised to the statement within five (5) days, the Court will consider the statement and award an appropriate amount to the creditor.

In “apparent” compliance with this Order, the Creditor has submitted an unsworn Statement signed by one of the attorneys employed by the Creditor that forty-nine (49) hours of services were performed by four (4) attorneys between November 15, 1984, and January 3, 1985, 3 and that the customary billing rate for each attorney in the Creditor's firm is $150.00 per hour. Furthermore, the Creditor has requested reimbursement for costs in the amount of $344.47 incurred between November 15, 1984, and March 12, 1985.

Our review of the Statement leads us to the inescapable conclusion that it is clearly insufficient under the standards for the award of attorneys’s fees. E.g., In re Meade Land and Development Co., Inc., 527 F.2d 280 (3d Cir.1975); Lindy Bros. Builders, Inc. v. American Radiator and Standard Co., 487 F.2d 161 (3d Cir.1973). 4 Although the Creditor explained that the customary billing rate for each attorney in the Creditor’s firm is $150.00 per hour, no information was provided as to the amount of experience, skill, status in the firm, or prestige in the marketplace of the attorney in question to guide the Court in setting an hourly rate. See In re Fine Paper Antitrust Litigation, 751 F.2d 562, 590 (3d Cir.1984). Even more significantly, the Creditor provided no information as to any of the attorneys’ experience in the area of bankruptcy. 5 Although the hourly rates set by the Court should be the rate commanded in the marketplace as reflected in *687 the normal billing rate, we must make a determination of the reasonableness of each attorney’s rate. Id. The Creditor’s Statement is permeated with the impermissible “lumping” together of more than one (1)activity making it impossible for the Court to properly review it. Another problem is the Creditor’s attempt to obtain attorneys’ fees for work performed not “arising from the debtor’s failure to appear at the initial examination.” Opinion of Judge King dated April 29, 1985. Hence, it is impossible to determine precisely how much time was spent on each activity. The efforts expended were duplicative as four (4) attorneys are documented as having worked on this matter. For example, we note as follows: (1) Items 1 and 2 indicate that on one day, two (2) attorneys spent 3.4 hours and 4.8 hours each on the same work; (2) portions of 20.9 hours (Items 1, 2, 3, 4, 6, 8, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21 and 24) 6 were attributed to meetings or conferences between the various attorneys and, while there is only one (1) instance where both attorneys applied for the same time expended (Item-18 and 19), it is apparent that much of the time spent was “necessary to educate each attorney about the case multiplied by the number of attorneys.” In re General Oil Distributors, Inc., 51 B.R. 794, 802 (Bankr.E.D.N.Y.1985) (Across-the-board reduction in hours claimed on fee application is necessary but fair expedient to correct for excessive or duplicative hours in a case involving multiple attorneys or large amount of hours claimed).

The Creditor raises the specious argument that the standards of Meade Land, supra, are not applicable because the underlying services for which an award of fees was being made therein is different from an award of fees based upon contempt. The Creditor fails to comprehend that the Court must be provided with sufficient information in order to review any applications for attorneys’ fees. The Creditor misapprehends the import of Meade Land because regardless of the source of payment for the award of attorneys’ fees, Meade Land sets the standards which fee applications must meet and standards by which a fee application can be evaluated. We hold that the standards of Meade Land apply to the instant request for attorneys’ fees arising in any context, especially where, as here, the applicant has been directed to submit an itemized statement of services and costs.

Due to the numerous deficiencies in the Creditor’s Statement, it is within this Court’s authority to deny fees altogether. However, in light of Judge King’s Order which found the Debtor in contempt, and in the interest of judicial economy because of the length of time this matter has been pending, and for reasons hereinafter stated, we will not put Counsel through the exercise of resubmitting another fee application.

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Cite This Page — Counsel Stack

Bluebook (online)
67 B.R. 685, 1986 Bankr. LEXIS 4922, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-woerner-paeb-1986.