Opinion
Case No. 7-02-01654-7, Motion No. 1
May 27, 2003
D. Carol Sasser, Esquire, Virginia Beach, Virginia, counsel for Countrywide Home Loans, Inc.
George I. Vogel, Esquire, Trustee, Roanoke, Virginia, and Malissa Lambert Giles, Esquire, Roanoke, Virginia, counsel for the debtors.
DECISION AND ORDER
The matter before the court for decision is a motion for allowance of attorney's fees by the secured creditor, Countrywide Home Loans, Inc., in connection with the liquidation of property by the Chapter 7 trustee, George I. Vogel, and his payment of the secured debt from sales proceeds. The trustee objected to payment of attorney's fees in the amount of $1,225.00 and late charges of $50.95. At hearing on the objection, counsel for the secured creditor presented no evidence to support allowance of attorney's fees under 11 U.S.C. § 506 (b) or the late charges. An order was entered May 2, 2003, giving the secured creditor fifteen (15) days to submit documentation supporting the fee request and late charges. The fee request is attributable to fees charged by counsel for the secured creditor in connection with a motion for relief from stay and the dispute between the trustee and the secured creditor as to the proper payoff amount of the loan.
Counsel for Countrywide Home Loans, Inc. filed a pleading titled "Itemization of Attorney's Fees Costs Incident to the Order of May 2, 2003." In that itemization, counsel reveals that the matters covered by the request for attorney's fees arise as a result of a flat fee arrangement between counsel and Countrywide Home Loans, Inc. Time records are not maintained by counsel. Under 11 U.S.C. § 506 (b), to the extent that the value of the property is greater than the amount of the creditor's claim for principal and interest "there shall be allowed to the holder of such claim, interest on such claim, and any reasonable fees, costs, or charges provided for under the agreement under which such claim arose." Without time records, the court has no basis for determining the reasonableness of the fees which counsel for the secured creditor requests. Also, the late charge fee of $50.95 has not been justified. Accordingly, based upon the record provided in this case, it is
ORDERED:
That the request by counsel for allowance of attorney's fees in the amount of $1,225.00 based upon a flat fee arrangement for services between counsel and Countrywide Home Loans, Inc., and the late charge fee of $50.95 be, and they hereby are DENIED.