Law Offices of Boone v. Derham-Burk (In Re Eliapo)

298 B.R. 392, 50 Collier Bankr. Cas. 2d 1346, 2003 Cal. Daily Op. Serv. 8329, 2003 Bankr. LEXIS 1112, 2003 WL 22111260
CourtUnited States Bankruptcy Appellate Panel for the Ninth Circuit
DecidedAugust 28, 2003
DocketBAP No. NC-02-1450-MaRyB, Bankruptcy No. 01-50227
StatusPublished
Cited by28 cases

This text of 298 B.R. 392 (Law Offices of Boone v. Derham-Burk (In Re Eliapo)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Appellate Panel for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Law Offices of Boone v. Derham-Burk (In Re Eliapo), 298 B.R. 392, 50 Collier Bankr. Cas. 2d 1346, 2003 Cal. Daily Op. Serv. 8329, 2003 Bankr. LEXIS 1112, 2003 WL 22111260 (bap9 2003).

Opinions

OPINION

MARLAR, Bankruptcy Judge.

INTRODUCTION

The chapter 131 debtors’ attorney opted for the standardized, “no look” fees,2 and the bankruptcy court approved the requested fees in the amount of $2,350 in conjunction with plan confirmation. The attorney later filed a detailed application in which he sought $1,248 in additional attorney’s fees for services in the chapter 13 case, and no party objected.

After an independent review, the bankruptcy court rendered its decision in which it utilized a two-step reasonableness analysis. First, it applied a “normal and customary” standard derived from the court’s formal guidelines to determine whether there were any unusual or extraordinary circumstances in the case or whether the [395]*395standard fee schedule for chapter 13 services was appropriate. Then, to those services which it determined were more than just routine, the bankruptcy court applied the lodestar approach (reasonable number of hours multiplied by a reasonable hourly rate) to determine the reasonableness of any additional fees. The bankruptcy court found that most of the services were routine and awarded only an additional $394.

In this appeal, the attorney seeks to recover the $854 difference. He contends that the bankruptcy court erroneously adhered to the court’s compensation guidelines instead of applying the lodestar approach to determine the reasonableness of all of the requested fees.

We affirm, concluding that the bankruptcy court’s dual-standard approach complied with § 330.

FACTS

On January 22, 2001, debtors Filiae and Judy Eliapo (“Debtors”) filed a chapter 13 petition. Their attorney was David A. Boone (“Boone”).

The Bankruptcy Judges for the Northern District of California have adopted guidelines (“Guidelines”) for compensating professionals and specifically chapter 13 debtors’ attorneys.3 In accordance with the “Guidelines for Payment of Attorney’s Fees in Chapter 13 Cases,” (“Ch. 13 Payment Guidelines”), Boone and Debtors signed and filed a form entitled “Rights and Responsibilities of Chapter 13 Debtors and their Attorneys” (“Rights and Responsibilities Form”).

The Rights and Responsibilities Form incorporates the Ch. 13 Payment Guidelines maximum fees for services rendered by a chapter 13 debtor’s attorney, in the following amounts:

$1,400 for the basic case; and an additional $750 if the case involves real property claims; $400 if the case involves state or federal tax claims; $200 if the case involves vehicle loans or leases; $1,200 if the case involves an operating business; $300 if the case involves support arrears; and $300 if the case involves student loans.

Rights and Responsibilities Form, at 2; Ch. 13 Payment Guidelines, ¶ A.2.

Fees approved in this fashion must then be paid through the chapter 13 plan or by the chapter 13 trustee, unless otherwise ordered by the court, and cannot be paid directly by the debtor, with the exception of the retainer. See Rights and Responsibilities Form, at 2.

Initial Attorney’s Fees Request

On June 21, 2001, in conjunction with the chapter 13 plan and the Rights and Responsibilities Form, Boone filed an “Application for Approval of Attorneys Fees” in the amount of $2,350. Boone indicated that this amount was the sum of the maximum amounts for services related to (1) the “basic case” ($1,400); (2) “Real property claims” ($750); and (3) “Vehicle loans or leases” ($200).

The application was one page long and did not include a detailed statement of the services rendered and the time spent. No objections were filed to Boone’s fee request. The application was consistent with the Ch. 13 Payment Guidelines, under which an attorney in the Northern District of California has the option of obtaining a fee approval order up to the maximum amount for any routine services without filing a detailed fee statement. See Ch. 13 Payment Guidelines, at 1.

[396]*396Boone met the three conditions for exercising this option:

a. Counsel has filed and served the Chapter 13 Trustee with an executed copy of the “Rights and Responsibilities of Chapter 13 Debtors and Their Attorneys,” ....
b. Counsel has accepted no more than $500 as a retainer in the case, unless counsel thereafter applies for and receives court approval of a larger advance retainer;4 and
c. No objection to the requested fees has been raised.

Ch. 13 Payment Guidelines, ¶ A.l.

On June 21, 2001, Debtors’ chapter 13 plan was confirmed, which included approval of Boone’s fee application for $2,350.5

The Final Fee Application

The Rights and Responsibilities Form provides that additional fees, in excess of those approved at the time of plan confirmation, may be obtained “[i]f the initial fees ordered by the court are not sufficient to compensate the attorney for the legal services rendered in the case, [and] the attorney [applies] to the court for any additional fees.” Rights and Responsibilities Form, ¶ 9.

In that event, the attorney must comply with Bankruptcy Rules 2002 (notice) and 2016 (detailed statement and disclosures), as well as the “Guidelines for Compensation and Expense Reimbursement of Professionals and Trustees” under § 330 (“General Compensation Guidelines”). See Ch. 13 Payment Guidelines, ¶ A.5.

Paragraph 9 of the General Compensation Guidelines allows a chapter 13 debt- or’s attorney, who has filed the Rights and Responsibilities Form, to utilize “the approved Chapter 13 form application when seeking compensation in excess of that approved at the time of confirmation.” See Chapter 13 Final Application for Compensation; General Compensation Guidelines, ¶ 9.

Pursuant to the Guidelines, on February 27, 2002, Boone filed a “Chapter 13 Application for Compensation” (“Final Application”) 6, which covered legal services provided during the entire case from January 18, 2001 through February 26, 2002. Boone requested attorney’s fees in the amount of $3,598 for 15.30 hours’ work at hourly rates of $220 to $250. This amount was $1,248 more than the $2,350 that had already been awarded, and included a request for $125 for the preparation of the Final Application.

Proper notice was given and the matter was set for hearing. However, when no objections were filed, the bankruptcy court took the matter under submission.

Six months later, on August 6, 2002, the bankruptcy court entered an order (“Or[397]*397der”) incorporating the court’s findings and conclusions, which granted only $394 additional fees instead of the $1,248 requested, a difference of $854.

In determining the reasonableness of Boone’s services, the bankruptcy court divided the services into two segments. The first component involved “normal,” basic case services (“Basic Services”), such as “preparation of the petition, schedules and statement of affairs and the moving of the case to confirmation.” Order (Aug. 6, 2002), at 2.

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298 B.R. 392, 50 Collier Bankr. Cas. 2d 1346, 2003 Cal. Daily Op. Serv. 8329, 2003 Bankr. LEXIS 1112, 2003 WL 22111260, Counsel Stack Legal Research, https://law.counselstack.com/opinion/law-offices-of-boone-v-derham-burk-in-re-eliapo-bap9-2003.