Matter of Combined Croft Corp.

58 B.R. 819, 1986 Bankr. LEXIS 6492
CourtUnited States Bankruptcy Court, W.D. Wisconsin
DecidedMarch 17, 1986
Docket1-19-10591
StatusPublished
Cited by4 cases

This text of 58 B.R. 819 (Matter of Combined Croft Corp.) 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 Combined Croft Corp., 58 B.R. 819, 1986 Bankr. LEXIS 6492 (Wis. 1986).

Opinion

*820 MEMORANDUM DECISION

ROBERT D. MARTIN, Bankruptcy Judge.

A final application for compensation under section 331 of the Bankruptcy Code was filed by The Law Offices of Jeffrey P. White, P.C. (“White”) for services to the debtors in these combined chapter 11 cases. White withdrew from the cases on September 3, 1985. The debtors’ current attorneys, Kinney, Urban, Schrader, Bromley & Kussmaul have asked the court to review the White application and to order the refund of any amounts charged and received which exceed the reasonable value of the services rendered.

White was approved as the debtors’ attorney on October 30, 1984. A total of $18,197.80 is sought for attorneys’ fees on services rendered from October 17, 1984, through September 4, 1985, and $1,311.45 is sought for reimbursement of expenses. The firm received a $7,500.00 retainer, but has apparently received no other payments.

The following is a breakdown of fees sought by White:

ATTORNEY BILLED HOURS RATE/HOUR TOTAL AMOUNT

Jeffrey White (pre-petition) .45 600.00 1 $ 450.00

Jeffrey White 47.15 100.00 4,715.00

Matthew Gerdiseh 41.36 80.00 3,308.80

Donald Johnson 113.50 80.00 9,080.00

Paul Kenkel .30 80.00 24.00

Carla Amato 7.70 80.00 616.00

Daniel Flynn 2 10 40.00 4.00

TOTAL HOURS AND FEES 210.56 $18,197.80

The following is a summary of the expenses for which reimbursement is sought:

travel $ 707.18

shipping and mail 150.74

UCC search 54.00

2,327 photocopies @ 0.172 399.53 3

TOTAL $1,311.45

The standard for determining 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 the court to award compensation for services and reimburse *821 ment of expenses of officers of the estate, and other professionals. The compensation 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 nonbank-ruptcy cases....
... An allowance is the result of a balance struck between moderation in the interest of the estate and its security holders 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 contin-' gent.
7. Time limitations imposed by the client or other circumstancesT
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., 44 B.R. 904 (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 attorneys’ fees in a bankruptcy case bears the burden of proving the necessity and reasonableness of the charges sought. In Re Rosen, supra at 86; In Re Hamilton Hardware Co., Inc., 11 B.R. 326, 329 (Bankr.E.D.Mich.1981). See generally In Re O.P.M. Leasing Services, Inc., 23 B.R. 104, 121 (Bankr.S.D.N.Y.1982). The burden in this case is heavy since little if any progress toward reorganization was achieved during the period of White’s representation and any recovery by White will necessarily be at the expense of other creditors in the case.

One important factor to be considered is “the amount involved and the results obtained.” In this case, the reorganization attempt appears to have been futile from the start and has almost certainly imposed a heavy cost on both the secured and unsecured creditors who would have benefitted from a prompt liquidation of the estate. After a lengthy and unsuccessful reorganization attempt the debtors’ situation was so grim that debtors’ counsel stipulated to relief from the automatic stay so that Production Credit Association, a principal creditor herein, could take steps to liquidate the debtors’ livestock. At that time however, and despite the large amounts of cash collateral used previously, debtors’ sought to recover the costs of their hog operation as administrative expenses under section 506(c) of the Code. This court rejected the debtors’ motion as meritless in a memorandum decision dated September 27, 1985 (In Re Combined Crofts Corp., 54 B.R. 294 (Bankr.W.D.Wis.1985)).

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Cite This Page — Counsel Stack

Bluebook (online)
58 B.R. 819, 1986 Bankr. LEXIS 6492, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-combined-croft-corp-wiwb-1986.