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.


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

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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