In re Jordan
In re Jordan
Opinion of the Court
DECISION AND ORDER ON ATTORNEYS’ FEES
Heard on the application of A. David Tammelleo, Esq., attorney for the trustee, for compensation in the amount of $2,718 for services and $95 for reimbursement of expenses. The trustee’s account shows total assets of $3,613. There are $103,000 in claims. This “Old Act” case has been pending since March 29, 1976, and if the application is allowed as requested, unsecured creditors will receive less than one-half of one percent of their claims.
The legal services performed in this case,
In determining allowances in cases commenced under the Old Act, we are guided by former Bankruptcy Rule 219(c),
Here, even if the assets were greater, the alleged value of counsel’s services in relation to the nature of the work performed appears to be considerably overstated. In this case there are no factors that would even begin to account for the lack of dispatch with which things were handled (the case is now 9 years old), or the number of hours (36) spent in accomplishing the liquidation. See In re Ducharme, 39 B.R. 681 (Bankr.D.R.I. 1984). Also, the requested hourly rate of $75 is high, considering that the bulk of the work of any benefit to the estate began in 1976, and was substantially concluded long prior to 1980 when prevailing hourly rates were much lower than they are today. See In re Bishop, 32 B.R. 302 (Bankr.D.R.I. 1983).
Accordingly, we conclude that based upon the results obtained, the amount of the request compared to the size of the estate, the nature of the problems encountered, the need for “conservation” of the estate, and the interest of the large creditor body, a fee
. This opinion constitutes the findings of fact and conclusions of law required by Bankruptcy Rules 7052 and 9014.
. Former Bankruptcy Rule 219(c):
(c) Factors in Allowing Compensation.
(1) General. The compensation allowable by the court to a trustee, receiver, marshal, attorney, accountant, or other person entitled to compensation for services rendered in the administration of a bankrupt estate shall be reasonable, and in making allowances the court shall give due consideration to the nature, extent, and value of the services rendered as well as to the conservation of the estate and the interests of creditors.
Reference
- Full Case Name
- In re John W. JORDAN, Bankrupt
- Status
- Published