Case No. 01-80096-RGMUnited States Bankruptcy Court, E.D. Virginia, Alexandria Division.
May 1, 2003
DONALD F. KING, ESQUIRE, ODIN, FELDMAN PITTLEMAN, P.C., Fairfax, Virginia, Counsel to Debtor.
MEMORANDUM OPINION
ROBERT G. MAYER, United States Bankruptcy Judge
This case is before the court on the application of Odin, Feldman Pittleman, P.C. for compensation as counsel to the chapter 7 trustee, Donald F. King. The application will be granted with certain small modifications.
The United States Trustee noted that Mr. King’s hourly rate was $285 and $300, which exceeds the hourly rate previously allowed in this case to the prior trustee’s counsel. In re Computer Learning Centers, Inc., 285 B.R. 191, 227 (Bankr.E.D.Va. 2002). The court has reviewed the services provided by Mr. King in his capacity as counsel to the trustee and again examined the hourly rates for attorneys who practice before this court and provide services similar to those provided by the applicant. The court again examined those fees to assure that the fees charged by those counsel are comparable to fees charged in non-bankruptcy cases. Blum v. Stenson, 465 U.S. 886, 896 n. 11, 104 S.Ct. 1541, 1547 n. 11, 79 L.Ed.2d 891 (1984); Johnson v. Georgia Highway Express, Inc., 488 F.2d 714, 718 (5th Cir. 1974); 11 U.S.C. § 330(a)(3)(B) and (E). Almost all attorneys charge a single hourly rate for their services, whether the services provided are for bankruptcy or non-bankruptcy services. Attorneys with dual or multiple rates are the exception. The prevailing hourly rate remains at $265. While there has been some isolated changes in rates since August 2002, the prevailing rate remains at $265 an hour. In time, the movement in rates most likely will result in a new prevailing rate, but that has not yet occurred. Consequently, the United States Trustee’s objection must be sustained.
The court also notes that in Category A, Estate Administration, $906.00 of the compensation requested is properly trustee compensation and not attorney compensation. In particular, time entries for James W. Reynolds for July 26, 2002, July 31, 2002, August 2, 2002, August 4, 2002, and August 12, 2002, reflect Mr. Reynolds acting as an intermediary between Janie Bosley, special counsel for pension plan matters, and the trustee. See, Computer Learning Centers, Inc., 285 B.R. at 231; In re King, 88 B.R. 768, 772 (Bankr.E.D.Va. 1988) (Bostetter, C.J.). The time entry of August 21, 2002, reflects the difficulty of these lines of communication. The time entry for Mr. Reynolds for that day reflects a meeting with the trustee to discuss the pension plan issues he had previously discussed with Ms. Bosley. How the trustee wishes to set up the trustee side of the administration of the estate is well within his discretion. Where appropriate, he may need to assistance in the administration of the case and assistance with communications with the many constituencies found in bankruptcy cases. See, King, 88 B.R. at 772. The expense, though, is that of the trustee. If otherwise appropriate, it may form a part of the trustee’s compensation, but it cannot form a part of the attorney’s compensation. This portion of the application will be denied without prejudice to the trustee re-submitting those hours, if appropriate, as part of his application for compensation as trustee.[1]
To further clarify the difficulty with time expended as intermediary for the trustee, the time expended by Mr. Reynolds in Category E, Non-Bankruptcy Litigation, reflects that he was in that instance not merely acting as a conduit for the trustee but was assisting the providing legal services.
Those services were necessary to assist Stewart Evans in preparing for trial and in settling the KMO361 litigation and in obtaining this court’s approval of the settlement. Those hours are properly compensable as attorney time. Mr. Reynolds was not performing the trustee’s duties or acting as an intermediary.
The court is satisfied that the expenses requested for on-line legal research in the amount of $1,645.61 is reasonably related to the legal services provided during this fee application period.
However, counsel is cautioned that if the court cannot determine the reasonableness of the requested expenses, they cannot be awarded. Legal research expenses should be broken down to the individual research sessions and adequately described. A single entry for all on-line research for a month or other period is generally not sufficient.
With the adjustments discussed, fees in the amount of $89,130.50 and expenses in the amount of $7,240.91 will be allowed.
ORDER
THIS MATTER came on upon the First Interim Application of the law firm of Odin, Feldman Pittleman, P.C. for compensation and reimbursement of expenses, and
IT APPEARING, after notice and hearing, that the First Interim Application should be granted in part, it is therefore
ORDERED that the law firm of Odin, Feldman Pittleman, P.C. be allowed compensation for professional services rendered for the period July, 2002 through February 28, 2003 in the amount of $89,130.50 and for reimbursement of expenses incurred during such period in the amount of $7,240.91.