New Bankruptcy Opinion: IN RE CHANNEL CONSTRUCTION, INC. – Bankr. Court, D. Alaska, 2015

In re CHANNEL CONSTRUCTION, INC., Chapter 11, Debtor.

Case No. J14-00103-HAR.

United States Bankruptcy Court, D. Alaska.

October 28, 2015.

MEMORANDUM EXPLAINING REDUCTION IN FEES ON FOURTH FEE APPLICATION [McGee Law Offices — ECF No. 197]

HERB ROSS, Bankruptcy Judge.

While reviewing the McGee Law Offices (MLO) fourth fee application (ECF No. 197), the court noticed MLO was charging 10.8 hours for Mr. McGee’s time at $330 per hour for the preparation of the fee application, instead of the $180 per hour the court believes was authorized, a $150 per hour overstatement. [1] I reviewed the revised Legal Representation Agreement which was attached as Exhibit H to the first fee application, [2] which does not make an exception to allow the higher rate. Thus, the fourth fee application should be reduced by 10.8 hours × $150/hr. = $1,620.

The court then reviewed the second and third fee applications, and they contained similar overstatement:

Filed at Order Hours Amount at
ECF Approving Overstated $150/hr.

No. at ECF No.
Second Application 136 142 13.0 hrs. $1,950
Third Application 166 178 5.7 hrs $855
$2,805

The total overstatement for the three fee applications is $1,620 + $2,805 = $4,425. The court will reduce the attorney fees on the fourth application to adjust for the overstatements it perceives on the second, third and fourth application to $47,483 ($51,908 requested on the fourth application, minus the $4,425 total correction).

To allow MLO due process to contest this analysis, MLO will have 21 days from entry of the order approving the application to file a file an objection to the court’s reduction. MLO may request a hearing if it desires one.

[1] ECF No. 197 at page 8, showing 10.8 hours at $330/hr. on the July 11, 2015 statement.

[2] The Legal Representation Agreement is Exhibit H to the first fee application. ECF 92, pages 73-77.

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