Central District Consumer Bankruptcy Attorney's Association

I think even if undersecured, HOA should be allowed their attorney fees (I
may be reading too much into the decision cited below).
If we temporarily assume that somehow the HOA lien does not have priority
over any consensual liens as is the case with some CC&Rs and is therefore,
undersecured.
If there is a postpetition default doesn't the HOA attorney have a right to
collect its fees if there is an attorney fees clause in the underlying
contract -- even on undersecured claims?
I think SNTL answers these questions (although I did not do in depth
research). See

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506b has the answer. Atty's fee are only allowed if the secured claim is oversecured.
You don't mention equity, but if there is equity behind the hoa, the atty can ask for "reasonable" fees. You can file a motion to determine the reasonableness of fees.
Of course, the 9th Cir has ruled that attys can be paid for preparing a fee app, so the hoa lawyer can ask for more fees, if the bk court rule the initial fees reasonable.
Tell the lawyer his fees are not reasonable, that atty should agree to a reasonable amount, or you will file a motion.
But, to be perfectly candid, I have charged $5k for complicated 362 motions, so only threaten if the motion was a form motion without a complicated dec and p&a.
d
Dennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503 310-328-1001-voice
> On May 30, 2014, at 3:19 PM, "Havkin Stella havkinlaw@earthlink.net [cdcbaa]" wrote:
>
> Report to the OUST.
>
> -----Original Message-----
> Sent: May 30, 2014 3:11 PM
> To: cdcbaa@yahoogroups.com
> Subject: [cdcbaa] Possibly Unreasonable HOA fees?
>
> Hello all--I am interested in your thoughts on this scenario:
>
> HOA files MFR seeking $2500 in postpetition dues. Debtor promptly tenders payment. I file an opposition stating that the postpetition dues are now paid in full. HOA refuses to withdraw or amend motion--now claim that they are owed over $5700 in postpetition legal fees. Their work in this case has consisted of: (1) filing a proof of claim; and (2) filing an MFR (which was deficient, in that it omitted their attorneys' fees). Now HOA attorney wants debtor to stipulate to an APO to pay HOA's attorneys' fees. Otherwise, they threaten that they will file a new motion (more fees, of course) seeking all of their postpetition fees and costs. I have requested a detailed billing statement, so that I can ascertain whether HOA's attorneys' fees are reasonable and necessary.
>
>
> Normally, I recognize that it is the debtor's best interest to stipulate to pay postpetition HOA fees and costs, since the HOA will eventually get their money one way or another. But this seems excessive. I am thinking of offering to stipulate to $3500 of fees as a "no look" amount---$1000 for the POC and $2500 for the MFR. If HOA refuses, then I force them to refile their motion and prove up their fees to the judge. Does this seem out of line? Any other suggestions?
>

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