Opinion
Case No. 13 BK 14126
09-22-2014
In re: NANOINK, Inc., Debtor.
Chapter 7
FINDINGS OF FACT AND CONCLUSIONS OF LAW IN SUPPORT OF ORDER GRANTING APPLICATION OF DEBORAH K. EBNER, ATTORNEY FOR CHAPTER 7 TRUSTEE, FOR ALLOWANCE OF FINAL COMPENSATION AND REIMBURSEMENT OF EXPENSES
| TOTAL FEES REQUESTED: | $171,322.00 | TOTAL COSTS REQUESTED: | $1,608.14 |
|---|---|---|---|
| TOTAL FEES REDUCED: | $372.00 | TOTAL COSTS REDUCED: | $0.00 |
| TOTAL FEES ALLOWED: | $170,950.00 | TOTAL COSTS ALLOWED: | $1,608.14 |
(1) Improper Allocation of Professional Resources
The Court denies the allowance in part of compensation for the following task since a professional with a lower level of skill and experience or a paraprofessional could have performed the task. In re Pettibone, 74 B.R. 293, 303 (Bankr. N.D. Ill. 1987) ("Senior partner rates will be paid only for work that warrants the attention of a senior partner. A senior partner who spends time reviewing documents or doing research a beginning associate could do will be paid at a rate of a beginning associate. [Citation omitted]. Similarly, non-legal work performed by a lawyer which could have been performed by less costly non-legal employees should command a lesser rate."); In re Wildman, 72 B.R. 700, 710 (Bankr. N.D. Ill. 1987) (same); In re Alberto, 121 B.R. 531, 535 (Bankr. N.D. Ill. 1990) (determining use of partner appropriate where attendant complex legal issues warrant highly experienced practitioner).
(13) No Benefit to the Estate
The court denies requests for fees relating to services that do not benefit the estate or that are not necessary to the administration of the case. 11 U.S.C. § 330(a)(4)(A). An attorney's internal work, prior to retention, to determine whether the attorney's firm satisfies the disinterestedness requirement of section 327 of the Bankruptcy Code does not provide benefit to the estate and is not compensable. See In re ACT Mfg., Inc., 281 B.R. 468, 490 (Bankr. D. Mass. 2002).
An attorney is required to balance the costs of performing a service and the benefit it will yield to the estate. See Matter of Taxman Clothing Co., 49 F.3d 310, 316 (7th Cir. 1995). The court denies fees for services rendered after it should have become apparent to the attorney that the services would not have yielded a net benefit for the estate. Id. Dated: September 22, 2014
/s/_________
Eugene R. Wedoff
United States Bankruptcy Judge
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