Opinion
Case No. 01-32268
March 13, 2002
John A. Walker, Jr., Esq., Catherine P. Kligerman, Esq., WALKER WALKER, P.C., Knoxville, Tennessee, Former Attorneys for Debtor.
Ragip Sinan Mungan, Knoxville, Tennessee, Objecting Party, Pro Se.
ELLEN B. VERGOS, ESQ., UNITED STATES TRUSTEE, Patricia C. Foster, Esq., Howard H. Baker, Jr. United States Courthouse, Knoxville, Tennessee, Attorneys for the United States Trustee.
MEMORANDUM ON APPLICATION FOR COMPENSATION
Before the court is the Application of Walker Walker, P.C. for Allowance of Compensation to Attorneys for Debtor and Debtor-in-Possession (Application) filed by the Debtor's former attorneys, Walker Walker, P.C. (Walker Walker), on October 30, 2001. By its Application, Walker Walker requests compensation of $9,367.50, including a $2,200.00 retainer paid by the Debtor prior to the commencement of its case under Chapter 11 on May 4, 2001. The Application is supported by an itemized statement detailing Walker Walker's services by date and time.
Walker Walker's employment was authorized pursuant to a May 17, 2001 Order Authorizing Retention of Counsel. Pursuant to an Order Allowing Withdrawal of Counsel entered on December 5, 2001, Walker Walker, and attorneys, John A. Walker, Jr. and Catherine P. Kligerman, were allowed to withdraw as the Debtor's counsel effective November 8, 2001.
The Debtor's Chapter 11 case was converted to Chapter 7 on August 28, 2001.
Based upon the hourly rates of its attorneys, the itemized statement reflects that Walker Walker's actual time warranted a fee request of $9,907.50. However, as $9,367.50 is the amount requested in the Application and in the Notice of Hearing served by Walker Walker on all parties in interest on October 30, 2001, $9,367.50 is the amount the court will consider.
On December 10, 2001, Ragip Sinan Mungan, identifying himself as "`Designee' for the Debtor," filed an Objection to Application of Walker Walker, P.C. for Allowance of Compensation to Attorneys for Debtor and Debtor-in-Possession (Objection). Mr. Mungan is not represented by counsel. On February 27, 2002, Walker Walker filed its Response of Walker Walker, P.C. to Objection to Fee Application.
This is a core proceeding. 28 U.S.C.A. § 157(b)(2)(A) (West 1993). Because Mr. Mungan has no apparent financial interest in this bankruptcy case, the court questions his standing to prosecute the present Objection. Nonetheless, the court has reviewed the Application of Walker Walker and finds that the services rendered the Debtor were reasonable and necessary. See 11 U.S.C.A. § 330(a) (West Supp. 2001). The services are well documented and relate to the Debtor's Chapter 11 case.
Although Mr. Mungan signed the Debtor's Voluntary Petition filed May 4, 2001, and the Statement of Financial Affairs and Schedules filed May 18, 2001, as "Manager," he is not identified as a creditor, shareholder or officer of the Debtor corporation. Furthermore, Mr. Mungan, a debtor in his own Chapter 7 case, No. 01-31472, does not schedule any interest in the Debtor corporation in his Statement of Financial Affairs and Schedules. It is apparent, however, from a review of the itemized statement accompanying Walker Walker's fee request that Mr. Mungan provided information essential for the preparation and filing of the Debtor's bankruptcy petition. Mr. Mungan's characterization of himself in his Objection as "Designee" and in the Debtor's petition as "Manager" sheds no light on his relationship, if any, to the Debtor.
Additionally, the compensation disclosure statement filed May 18, 2001, by Walker Walker pursuant to 11 U.S.C.A. § 329(a) (West 1993) and Rule 2016(b) of the Federal Rules of Bankruptcy Procedure evidences that the Debtor agreed to pay compensation in the amount of $10,000.00 for legal services rendered or to be rendered in connection with the Debtor's bankruptcy case. Although Walker Walker no longer represents the Debtor, the compensation it requests was clearly earned and is certainly within the amount agreed upon with the Debtor.
For the above reasons, Ragip Sinan Mungan's Objection will be overruled and Walker Walker's Application will be granted. An appropriate order will be entered.
BY THE COURT
ORDER
For the reasons stated in the Memorandum on Application for Compensation filed this date, the court directs the following:
1. The Objection to Application of Walker Walker, P.C. for Allowance of Compensation to Attorneys for Debtor and Debtor-in-Possession filed by Ragip Sinan Mungan on December 10, 2001, is OVERRULED.
2. The Application of Walker Walker, P.C. for Allowance of Compensation to Attorneys for Debtor and Debtor-in-Possession filed by Walker Walker, P.C. on October 30, 2001, is GRANTED.
3. Walker Walker, P.C. is allowed compensation for services rendered the Debtor through October 14, 2001, in the amount of $9,367.50, of which $2,200.00 was advanced prior to the commencement of the Debtor's Chapter 11 case. The balance of $7,167.50 is allowed as an administrative expense pursuant to 11 U.S.C.A. § 503(b)(2) (West 1993).
SO ORDERED.