Rodgers v. Arthur (In re the Debtor Estate of Sands)

22 B.R. 132, 6 Collier Bankr. Cas. 2d 1005, 1982 Bankr. LEXIS 3928
CourtUnited States Bankruptcy Court, D. New Jersey
DecidedJune 14, 1982
DocketBankruptcy Nos. 81-05852, 81-05880 and 81-05839; Adv. Nos. 82-0085 to 82-0087
StatusPublished
Cited by1 cases

This text of 22 B.R. 132 (Rodgers v. Arthur (In re the Debtor Estate of Sands)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rodgers v. Arthur (In re the Debtor Estate of Sands), 22 B.R. 132, 6 Collier Bankr. Cas. 2d 1005, 1982 Bankr. LEXIS 3928 (N.J. 1982).

Opinion

OPINION

WILLIAM LIPKIN, Bankruptcy Judge.

The three above named proceedings involve a common thread of facts and conclusions of law to be attached thereto.

Upon conclusion of the three trials a decision was rendered orally thereon identical [133]*133in finding of fact and law. The defendant has filed a Notice of Appeal and this written opinion is rendered upon all three estates.

Briefly, the facts are as follows:

On October 1, 1981 the Debtors, William Sands, Jr. and Anna Theresa Sands, filed a Petition for Relief1 under the provisions of Chapter 7 of the Bankruptcy Code.2 John F. Rodgers, Jr. was designated as the Interim Trustee by the United States Trustee.3 Mr. Rodgers, upon his application, was appointed as attorney for the trustee, pro se.

The Petition does not name an attorney for the Petitioners. However, of critical interest is the “Revised statement of compensation” as required under the provisions of Rule 219(b) attached to the Petition for Relief.4

The statement sets forth the following information:

The undersigned, pursuant to Rule 219(b), Rules of Bankruptcy Procedure, states that the compensation paid or promised by the debtor(s), to the undersigned, is as follows:
For legal services rendered (including spouse if both file), Debtor agreed to pay .$ “None”
Prior to the filing of this Statement, Debtor (and spouse if applicable) has paid the undersigned.$ “160.00”
Balance due.$ “None”
The filing fee - has not been paid “Installment Application Filed”

The services rendered or to be rendered include the following:

(a) Analysis of the financial situation, and rendering advice and assistance to the client in determining whether to file a petition under title 11, United States Code. “None”
(b) Preparation and filing of the petition, schedules of assets and liabilities, and statement of affairs.
“Yes: Payment for typing of forms by my direction.”
(c) Representation of the client at the first meeting of creditors. “None”

The undersigned further states that the source of monies paid by the Debtors) to the undersigned was and is, earnings, wages and compensation for services performed, and

“Typing Service. Bradford Arthur, Box 211, Ardmore, Pa. 19003”
[134]*134The undersigned further states that the undersigned has not shared, or agreed to share with any other person, other than with members of undersigned’s law firm, any compensation, except as herein after set forth.
“None”

Typed at the bottom of the Statement were the words, “Pro-Se”.

The Petition for Relief under Chapter 7 was filed by Kenneth C. Robinson on October 2, 1981.5 The questions in the Statement required by Rule 219(b) was filled in substantially as in the Sands’ Petition by Bradford Arthur, wherein he set forth that he was paid $160.00 prior to the filing of the Statement and that his services did not include an analysis of the financial situation and advice in determining whether to file a Chapter 11 petition instead of a Chapter 7 petition. He set forth that his “services rendered or to be rendered include the following:” on the printed statement,

Preparation and filing of the petition, schedules of assets and liabilities, and statement of affairs.
“Yes: Typing of (b) (forms) by direction of petitioner acting pro-se.” Representation of the client at the first meeting of creditors “None”
The undersigned further states that the source of monies paid by the Debtors) to the undersigned was and is, earnings, wages and compensation for services performed, and
“Compensation for typing service.”

The reference in the Statement as to whether the filing fee has or has not been paid was not completed either way.

The Petition for Relief under Chapter 7 was filed by Charlotte R. Short on September 30, 1981.6

The Statement required by Rule 219(b) reveals that it was submitted by Bradford Arthur. The answers to the queries in the Statement in this Estate are the same as in the Robinson Estate, to wit, he was paid $160.00 and he typed in the same responses that his services included typing of the forms by direction of petitioner acting prose and as to source of moneys was “compensation for typing services”.

He indicated in the Statement that the filing fees were paid in this Estate.

Bradford Arthur gave as his address in all three Estates, Box 211, Ardmore, Pa. 19003.

John Rodgers, Jr. was designated as the Trustee in all three Estates by the United States Trustee, Hugh M. Leonard.

The Trustee has filed a complaint in all three Estates against Bradford Arthur wherein he stated:

4. It is the belief of the Trustee that the Defendant, BRADFORD ARTHUR acted as the attorney for the Debtors and that he is not authorized to practice law in the State of New Jersey and therefore, the $160.00 should be turned either over to the Trustee or to the Debtor.
5. Should the Court determine that MR. BRADFORD ARTHUR did not act as the attorney for the Debtor, but only as a “consultant”, it is the belief of the Trustee, that the $160.00 is an unreasonable fee for “typing” the Petitions.
WHEREFORE, Judgment is demanded against the Defendant:
a. requiring the Defendant to turn over to the Trustee $160.00;
b. whatever remedy the Court sees reasonable and just.

In each of these cases in which the Debt- or filed a Petition for Relief the machinery to file a Petition was generated by an advertisement in the Camden Courier Post newspaper whereby the reader was invited to call a number whereby the reader could obtain relief from their debts. The Debtors in the three Estates herein involved7 called [135]*135the telephone number listed in the advertisement and inquired thereof, and subsequently they were all visited at their respective homes by Bradford Arthur, the defendant herein.

In each case he reviewed with them the names of their creditors, the real estate and personal property they owned and the value of such assets and had them pay him one half of his fee and he made lists of such facts. He told them his charge or fee, however it was called, was $160.00 and in each Estate he was then paid $80.00. He departed their respective homes and then returned with the Petition and Schedules completely typed up including the schedule which set forth their exemptions. In each of the Estates the exemptions consumed all of the assets set forth in the schedules.

Each of the Debtors then paid Arthur the balance of $80.00 and he was paid $60.00 by Sands and Robinson and Short for the filing fees.

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Related

Foulston v. Jones (In Re Robinson)
162 B.R. 319 (D. Kansas, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
22 B.R. 132, 6 Collier Bankr. Cas. 2d 1005, 1982 Bankr. LEXIS 3928, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rodgers-v-arthur-in-re-the-debtor-estate-of-sands-njb-1982.