Opinion
Case No. 8:03-bk-10644-MGW.
March 23, 2006
ORDER OVERRULING OBJECTION OF DEBTOR AND GRANTING TRUSTEE'S SPECIAL COUNSEL'S FIRST AND FINAL FEE APPLICATION
This Cause came on for hearing on March 9, 2005 upon the First and Final Fee Application filed by Forizs Dogali, P.L. ("FD) as Special Counsel to Angela Esposito, the Chapter 7 Trustee. FD filed its fee application requesting the Court award it compensation and reimbursement of costs for the period of July 24, 2003 through December 19, 2005 ("Application Period"). Robert Wahl appeared on behalf of FD, Mike Markham appeared on behalf of the Debtor, Richard Prosser appeared on behalf of Lillian Parra, and Bruce Russell appeared telephonically on behalf of the United States for the Internal Revenue Service. The Trustee also appeared at the hearing.
According to the Application, FD devoted 468.2 hours of attorney time in representing the Trustee in this unusual and contentious Chapter 7 case during the Application Period. Based upon the hourly rates set forth in the affidavit in support of the Trustee's application to employ FD as special counsel which was approved, the fees incurred were $97,463.00. FD also seeks reimbursement of costs in the amount of $2,694.14. The total fees and costs sought by FD are $100,157.14. The Debtor, Jorge Parra filed a limited objection to the fee application directed to the fees incurred in connection with pursuing the claims against Peoples' Bank and the Debtor's accountant. FD filed a response to the objection and segregated the time and fees spent in pursuing the claims against the bank and accountant.
In considering an Application for Compensation, the Court must consider the lodestar principle to determine a proper fee award.Pennsylvania v. Delaware Valley Citizens' Council, 478 U.S. 546, 106 S. Ct. 3088, 92 L.Ed.2d 439 (1986). The lodestar principle is based on multiplying the reasonable number of hours expended on services by a reasonable rate. Id. After calculating the fee according to the lodestar method, this Court may consider other factors to adjust the fee upward or downward.Hensley v. Eckerhardt, 461 U.S. 424, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983).
The Court considered the record, the Fee Application, the Debtor's objection, FD's response, and argument of counsel, and the factors set forth in Johnson v. Georgia Highway Express, Inc., 488 F.2d 714 (5th Cir. 1974), which was made applicable to bankruptcy cases in Matter of First Colonial Corp. of America, 544 F.2d 1291 (5th Cir. 1977), cert. denied, 431 U.S. 904 (1977), and other relevant case law and Section 330 of the Bankruptcy Code. For the reasons announced at the hearing, the Court finds that FD's hourly rates to be reasonable and within the range customarily charged for such services. The Court also finds that the time spent and costs incurred were reasonable and necessary.
A reasonable fee for services rendered during the applicable time period is $97,463.00 and a reasonable cost allowance for compensable expenses is $2,694.14. Therefore, the Debtor's objection shall be overruled, the Application shall be granted, and the fees and costs approved as set forth below. Accordingly, it is
ORDERED and ADJUDGED that:
1. The First and Final Fee Application filed by Forizs Dogali, P.L. as Special Counsel to Angela Esposito, the Chapter 7 Trustee, for the period July 24, 2003 through December 19, 2005 is approved.
2. The Objection to FD's fee application filed by the Debtor is overruled.
3. The Court awards FD $97,463.00 for fees and $2,694.14 for costs for a total of $100,157.14 which is allowed as an administrative expense.
4. The Chapter 7 Trustee is directed to pay FD the sum of $100,157.14 within ten (10) days after this Order becomes final and non-appealable.
Done and Ordered.