Matter of Chapman Farms

58 B.R. 822, 1986 Bankr. LEXIS 6491
CourtUnited States Bankruptcy Court, W.D. Wisconsin
DecidedMarch 17, 1986
Docket1-19-10044
StatusPublished
Cited by3 cases

This text of 58 B.R. 822 (Matter of Chapman Farms) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, W.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matter of Chapman Farms, 58 B.R. 822, 1986 Bankr. LEXIS 6491 (Wis. 1986).

Opinion

MEMORANDUM DECISION

ROBERT D. MARTIN, Bankruptcy Judge.

A final application for compensation was filed by the Law Offices of Jeffrey P. White, P.C. (“White”) for services to the debtors in these cases. On September 17, 1984, the Chapman Farms Partnership chapter 11 case was filed. Bernard and Patricia Chapman and Gregory and Mary Kay Chapman filed their chapter 11 cases on November 13, 1984. On November 21, 1984, the petition of the Chapman Farms Partnership was dismissed. On March 11, 1985, White moved to withdraw as counsel for the debtors. The motion to withdraw was granted on March 12, 1985. The debtors’ current attorneys, Kinney, Urban, Schrader, Bromley & Kussmaul have asked the court to review the White fee application and to order the refund of any amounts charged which exceed the reasonable value of the services rendered.

White is seeking $21,361.40 for a total of 253.43 billable hours at rates of $80.00 or $100.00 per hour depending upon the attorney rendering the services. Seventy-two of the hours sought to be charged are for travel time primarily from White’s Chicago office to the debtors’ residence or the bankruptcy court in Wisconsin for which the firm is seeking reimbursement at half the normal attorney rate.

Preliminarily it should be noted that this entire fee petition could be rejected for several reasons. First, the fees are not properly allocated between those due to the Chapman Farms partnership case and those due to the individual cases. It is impossible by an examination of the line entries accompanying the petition to verify the number of hours spent on the Chapman Farms case. Most entries prior to November 13, 1984, may be presumed to have involved that partnership case. When the total of hours billed prior to November 13, 1984, which were apparently related to the Chapman Farms case, is added to the total of hours after November 13, 1984, explicitly billed to Chapman Farms the total is far more than the 72.48 hours identified to the partnership case by White. Second, the hours billed to the individual cases provide no indication as to the allocation between those cases.

A further problem of specificity is that most of the entries do not adequately describe the activities for which recovery is sought. Many entries combine numerous activities without breaking down the amount of time spent on each individual item. In short, the itemized application presented to the court even apart from the substantive deficiencies which will be dis *824 cussed below is hopelessly inadequate and could justly be refused in its entirety. 1

Despite the insufficiency of the fee petition, it is apparent that at least some com-pensable hours exist for which a claim may be allowed. I have therefore labored to interpret the itemized entries in a way that will allow recovery wherever possible. The standard for determining compensable attorney fees in bankruptcy cases is found in section 330 of the Code which provides in relevant part:

(a) After notice and a hearing, and subject to sections 326, 328, and 329 of this title, the court may award to a trustee, to an examiner, to a professional person employed under section 327 or 1103 of this title, or to the debtor’s attorney— (1) reasonable compensation for actual, necessary services rendered by such trustee, examiner, professional person, or attorney, as the case may be, and by any paraprofessional persons employed by such trustee, professional person, or attorney, as the case may be, based on the nature, the extent, and the value of such services, the time spent on such services, and the cost of comparable services other than in a case under this title; and
(2) reimbursement for actual, necessary expenses.

11 U.S.C. § 330(a). The legislative history indicates:

Section 330 authorizes ... compensation [which] is to be reasonable, for economy in administration is the basic objective. Compensation is to be for actual necessary services, based on the time spent, the nature, the extent and the value of the services rendered, and the cost of comparable services in nonbankruptcy cases....
... An allowance is the result of a balance struck between moderation in the interest of the estate ... and the need to be ‘generous enough to encourage’ lawyers and others to render the necessary and exacting services that bankruptcy cases often require.

Senate Report No. 95-989, 95th Cong.2d, Sess. 40-41 (1978), U.S.Code Cong. & Admin.News 1978, pp. 5787, 5826, 5827, 3 App. Collier on Bankruptcy (15th ed. 1985).

Many courts have adopted the following criteria in evaluating claims for attorney’s fees:

1. The time and labor required.
2. The novelty and difficulty of the question.
3. The skill required to perform the legal services properly.
4. The preclusion of other employment by the acceptance of this employment.
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 attorney.
10. The undesirability of the case.
11. The nature and length of the professional relationship with the client.
12. Awards in similar cases.

See In Re Reliable Investors Corp., 60 B.R. 98 (Bankr.W.D.Wis.1986); In Re Rosen, 25 B.R. 81, 86 (Bankr.D.S.C.1982). See also Hensley v. Eckerhart, 461 U.S. 424, 430, n. 3, 434, n. 9, 103 S.Ct. 1933, 1937, n. 3, 1940, n. 9, 76 L.Ed.2d 40 (1983) (citing the above factors with approval).

As with all priority claimants an applicant for attorney’s fees in a bankruptcy case bears the burden of proving the necessity and reasonableness of the charges sought. It is particularly critical in this matter that White meet a high standard of proving the fees reasonable and necessary. The debtors’ reorganization has proven unfeasible and it is apparent from my observation of the conduct of these three cases that White has rendered *825 services of questionable value. Even a rudimentary analysis by an able practitioner would have revealed at the outset that reorganization in these cases was impossible, or so very improbable as to make the effort of dubious economic benefit. As has been noted above, a considerable number of hours was spent on the partnership case. That ease was the first filed. Two months after its filing this court determined at a hearing that no partnership existed and dismissed the case. An examination of the record as a whole leads to the conclusion that at no time was there even a colorable basis for a claim of partnership status.

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Bluebook (online)
58 B.R. 822, 1986 Bankr. LEXIS 6491, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-chapman-farms-wiwb-1986.