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Contesting Chapter 7 Trustee Attorney's Fees
I have contested trustee's counsel's fees successfully but you have to show
either that the work was not authorized, not necessary, not reasonably
likely to benefit the estate, or that they did not show reasonable
billing judgment.
I think we should all oppose these fee apps when we have grounds to do so.
Good luck!
On Friday, October 17, 2014, paloci66@yahoo.com [cdcbaa] wrote:
>
>
> After Debtors (unwisely) filed a Chapter 7 case in pro per, they retained
> and we were able to successfully convert to Chapter 13 over the Chapter 7
> Trustee's objection. The Chapter 7 Trustee wanted to sell Debtors'
> residence. We will soon confirm a 100% plan.
>
>
> Chapter 7 Trustee's counsel has filed a claim for 20.4 hours at $550
> hourly -- about $11k, with costs. We had one hearing. The time is somewhat
> out of line, but the hourly is what gets me -- $550 hourly seems excessive
> for the novelty and complexity of work. But my opinion may be skewed, as I
> moved here from Florida not long ago and don't know anyone who bills out at
> $550 hourly.
>
>
> I would like to contest fees, but my gut tells me that it's maybe a 50/50
> proposition and I leave my client liable for fees and costs associated with
> defending a "good" claim.
>
>
> Does anyone have experience with contesting such fees? Are they reasonable
> for the circumstances? Judge is VK in WH.
>
>
> Any feedback is appreciated.
>
> Henry Paloci, Esq.
>
> 805.498.5500
>
>
>
>
>
>
Holly Roark
Certified Bankruptcy Specialist*
*and Sports Lawyer*
holly@roarklawoffices.com **primary email address**
www.roarklawoffices.com
Central District of California
Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600
Los Angeles, CA 90067
T (310) 553-2600
F (310) 553-2601
*By State Bar of California Board of Legal Specialization
**For a quicker response, email me at holly@roarklawoffices.com.
I only use gmail for my listservs, and am likely to miss private emails
directed to my gmail account.**
The post was migrated from Yahoo.
Judge VK comes from a big-firm background, and won't be shocked by $550 per hour. She sees attorneys coming from downtown who are coming close to four figures per hour. Some of the valley trustees come from big firms that charge these rates habitually.
I think if you can make a good argument that the counsel spent too much time, you are better off than fighting the rate.
I have only challenged fees for opposing counsel twice; in one case, the judge didn't even read the papers, and in the other, I got a fee reduction that was worth slightly less than what I charged the client. The client knew that was possible, and still wanted to go forward.
On this one, unless I thought I could reduce the time by half or more, I would shy away from challenging the fees.
- John D. Faucher 818/889-8080
On Friday, October 17, 2014 11:38 AM, "paloci66@yahoo.com [cdcbaa]" wrote:
After Debtors (unwisely) filed a Chapter 7 case in pro per, they retained and we were able to successfully convert to Chapter 13 over the Chapter 7 Trustee's objection. The Chapter 7 Trustee wanted to sell Debtors' residence. We will soon confirm a 100% plan.
Chapter 7 Trustee's counsel has filed a claim for 20.4 hours at $550 hourly -- about $11k, with costs. We had one hearing. The time is somewhat out of line, but the hourly is what gets me -- $550 hourly seems excessive for the novelty and complexity of work. But my opinion may be skewed, as I moved here from Florida not long ago and don't know anyone who bills out at $550 hourly.
I would like to contest fees, but my gut tells me that it's maybe a 50/50 proposition and I leave my client liable for fees and costs associated with defending a "good" claim.
Does anyone have experience with contesting such fees? Are they reasonable for the circumstances? Judge is VK in WH.
Any feedback is appreciated.
Henry Paloci, Esq.
805.498.5500
The post was migrated from Yahoo.