In re: THE 800 BUILDING, LLC, Chapter 11, Debtor(s).
Case No. 15 B 17314.
United States Bankruptcy Court, N.D. Illinois, Eastern Division.
November 10, 2015.
FINDINGS OF FACT AND CONCLUSIONS OF LAW IN SUPPORT OF ORDER AWARDING TO LOCKE LORD LLP, ATTORNEYS FOR DEBTOR, FOR ALLOWANCE AND PAYMENT OF FIRST INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES
JACQUELINE P. COX, Bankruptcy Judge.
TOTAL FEES REQUESTED: $143,528.50 TOTAL COSTS REQUESTED: $ 492.01
TOTAL FEES REDUCED: $ 1,749.00 TOTAL COSTS REDUCED: $ 48.75
TOTAL FEES ALLOWED: $141,779.50 TOTAL COSTS ALLOWED: $ 443.26
TOTAL FEES AND COSTS ALLOWED: $142,222.76
The attached time and expense entries have been underlined to reflect disallowance in whole or in part. The basis for each disallowance is reflected by numerical notations that appear on the left of each underlined entry. The numerical notations correspond to the enumerated paragraphs below.
(1) Improper Allocation of Professional Resources — TOTAL of disallowed amounts: $1,749.00
The Court denies the allowance in part of compensation for the indicated task(s) as a professional with a lower level of skill and experience or a paraprofessional could have performed the task(s). In re Pettibone, 74 B.R. 293, 303 (Bankr. N.D. Ill. 1987) (“Senior partner rates will be paid only for work that warrants the attention of a senior partner. A senior partner who spends time reviewing documents or doing research a beginning associate could do will be paid at a rate of a beginning associate. [Citation omitted]. Similarly, non-legal work performed by a lawyer which could have been performed by less costly non-legal employees should command a lesser rate.”); In re Wildman, 72 B.R. 700, 710 (Bankr. N.D. Ill. 1987) (same); In re Alberto, 121 B.R. 531, 535 (Bankr. N.D. Ill. 1990) (determining use of partner appropriate where attendant complex legal issues warrant highly experienced practitioner).
(2) Overhead Costs are Non-Compensable — TOTAL of disallowed amounts: $48.75
The Court denies reimbursement for fees or expenses that are overhead costs. Expenses which are overhead are not compensable because they are built into the hourly rate. See In re Wildman, 72 B.R. 700, 731 (Bankr. N.D. Ill. 1987) . Overhead, for bankruptcy purposes, includes “all continuous administrative or general costs or expenses incident to the operation of the firm which cannot be attributed to a particular client or cost.” In re Convent Guardian Corp., 103 B.R. 937, 939-40 (Bankr. N.D. Ill. 1989) (quoting In re Thacker, 48 B.R. 161, 164 (Bankr. N.D. Ill. 1985) ).
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