Opinion
Case No. 10bk44866
12-16-2015
In re: RICHARD KLARCHEK Debtor.
Chapter 7
FINDINGS OF FACT AND CONCLUSIONS OF LAW IN SUPPORT OF ORDER AWARDING TO MCGUIREWOODS, LLP, ATTORNEYS FOR TRUSTEE, FOR ALLOWANCE AND PAYMENT OF FOURTH INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES AND ORDER CONTINUING REQUEST FOR COMPENSATION OF CERTAIN ENTRIES
| TOTAL FEES REQUESTED: | $ 66,540.00 | TOTAL COSTS REQUESTED: | $ 944.43 |
| TOTAL FEES REDUCED: | $ 2,632.50 | TOTAL COSTS REDUCED: | $ 0.00 |
| TOTAL FEES CONTINUED: | $ 20,610.00 | ||
| TOTAL FEES ALLOWED: | $ 43,297.50 | TOTAL COSTS ALLOWED: | $ 944.43 |
This matter coming to be heard on the application for compensation (the "Application") of McGuireWoods, LLP ("Counsel"), counsel to Richard J. Mason, chapter 7 trustee of the estate of Richard J. Klarchek (the "Trustee"), the court, having considered the Application hereby orders as follows:
I. Except as noted below and attached, Counsel's request for compensation and reimbursement of expenses is allowed.
II. The attached time entries have, however, been underlined to reflect disallowance or continued for ruling.
III. The basis for each disallowance or continuance is reflected by numerical notations that appear on the right of each underlined entry. Where time entries by Counsel are noted as not allowed under one category, that is not an indication that such time entries were sufficient in other categories of compliance. However, so as not to doubly penalize Counsel on requested time entries, the court has determined to disallow such time for only one reason.
IV. The numerical notations correspond to the enumerated paragraphs below. (1) Unreasonable Travel Time — TOTAL of disallowed amounts: $ 2,632.50
The Court denies the allowance in part of compensation for travel time, where compensation at the normal hourly rate (not the customary one-half discounted rate) is sought without explanation. In re Planter, No. 08 B 16883, 2009 WL 1393691 (Bankr. N.D. Ill. May 18, 2009) (Barbosa, J.) ("this Court has routinely held that time spent traveling to and from a location typically shall be compensated at one-half of the attorneys' or other professionals' hourly rate."); In re McKeeman, 236 B.R. 667 (B.A.P. 8th Cir.1999); In re Spanjer Bros., Inc., 191 B.R. 738, 755 (Bankr. N.D. Ill. 1996) (Squires, J.).
In this district, local travel is not compensated. Entries indicating travel, without parsing of time spent on just travel, were disallowed in full as the court could not determine the amount that was for travel only and, therefore, not compensable. (2) Insufficient Description — TOTAL of disallowed amounts: $ 20,610.00
The Court will continue the request of compensation for the indicated task(s) as the description of each task fails to identify in a reasonable manner the service rendered. In re Pettibone, 74 B.R. 293, 301 (Bankr. N.D. Ill. 1987) (Schmetterer, J.) ("A proper fee application must list each activity, its date, the attorney who performed the work, a description of the nature and substance of the work performed, and the time spent on the work. [Citation omitted] Records which give no explanation of the activities performed are not compensable."); In re Wildman, 72 B.R. 700, 708-9 (Bankr. N.D. Ill. 1987) (Schmetterer, J.) (same).
In this case, counsel had many vague entries concerning reviewing documents for counsel with no indication of who counsel was and/or what the goal of the review was for. The rest of the application identified other counsel in conversations and goal of review so that the court could determine what was being billed for.
Instead of disallowing this category, the court will continue the request to allow counsel the opportunity to file amended time entries. Counsel may file those time entries on the docket or, if they need to be restricted, filed in accordance with the applicable Local Rules. Such amendment must be filed on or before December 31, 2015.
The hearing on the time entries marked as insufficient description is continued to January 13, 2016 at 10:30 AM. Counsel may also bring the amended time entries to court for in camera review at this hearing. Dated: December 16, 2015
/s/_________
Timothy A. Barnes
United States Bankruptcy Judge
Image materials not available for display.