Opinion
NOT FOR PUBLICATION
ORDER ON FIFTH INTERIM FEE APPLICATION OF COUNSEL FOR DEBTOR-IN-POSSESSION
PETER W. BOWIE, Judge.
Procopio, Cory, Hargreaves & Savitch, LLP (Applicant) filed its fifth interim fee application for allowance of attorneys' fees incurred and reimbursement of costs advanced as counsel for debtor-in-possession David Anderson (Debtor) for the period October 1, 2013 through April 30, 2014. Applicant seeks allowance of fees of $264, 311.50 and costs of $13, 386.05 on an interim basis.
The sole opposition to the Application was filed by James Lessley and Victoria Place, LLC (collectively Lessley). Lessley asserts a claim in this case of approximately $12 million. Debtor disputes that claim in its entirety. Debtor and Lessley are litigating the claim in the state court. Depending upon the results in the state court, Lessley may end up with no claim in this case.
The essence of Lessley's objection to the fee application is that all the money in this bankruptcy estate is money that was misappropriated by debtor from Lessley and Victoria Place. Moreover, Lessley and Victoria Place continue to argue that they had the case settled until debtor's counsel sabotaged the agreement. In support of their argument, they even invited the Court to contact the state court judge to get his assessment of what occurred. The Court declines to seek ex parte information not on the record, and notes in passing that if there were a settlement in the state court litigation Lessley and Victoria Place have a forum in which to seek enforcement of any such settlement.
The Court has considered the Application, Lessley's opposition and the reply thereto. The Court has decided to allow the fees and costs requested on an interim basis. The interim allowance is of course subject to application for final allowance and is subject to disgorgement, should the fees ultimately be denied. In the event Lessley prevails in state court and establishes a claim, in this case, he is of course welcome to renew his objections upon final application.
Applicant shall lodge and serve an order consistent herewith within thirty (30) days of the entry of this decision.
IT IS SO ORDERED.