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In re Tabor, 15 bk 26544. (2018)

Court: United States Bankruptcy Court, N.D. Illinois Number: inbco20180518847 Visitors: 15
Filed: May 15, 2018
Latest Update: May 15, 2018
Summary: FINDINGS OF FACT AND CONCLUSIONS OF LAW IN SUPPORT OF ORDER AWARDING TO PATRICK S. LAYNG, ATTORNEY FOR UNITED STATES TRUSTEE, ALLOWANCE AND PAYMENT OF FINAL COMPENSATION AND REIMBURSEMENT OF EXPENSES TIMOTHY A. BARNES , Bankruptcy Judge . TOTAL FEES REQUESTED: $ 52,363.46 TOTAL COSTS REQUESTED: $ 0.00 TOTAL FEES REDUCED: $ 4,546.22 TOTAL COSTS REDUCED: $ 0.00 TOTAL FEES ALLOWED: $ 47,817.24 TOTAL COSTS ALLOWED: $ 0.00 TOTAL FEES AND COSTS ALLOWED: $ 47,817.24 The
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FINDINGS OF FACT AND CONCLUSIONS OF LAW IN SUPPORT OF ORDER AWARDING TO PATRICK S. LAYNG, ATTORNEY FOR UNITED STATES TRUSTEE, ALLOWANCE AND PAYMENT OF FINAL COMPENSATION AND REIMBURSEMENT OF EXPENSES

TOTAL FEES REQUESTED: $ 52,363.46 TOTAL COSTS REQUESTED: $ 0.00 TOTAL FEES REDUCED: $ 4,546.22 TOTAL COSTS REDUCED: $ 0.00 TOTAL FEES ALLOWED: $ 47,817.24 TOTAL COSTS ALLOWED: $ 0.00 TOTAL FEES AND COSTS ALLOWED: $ 47,817.24

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) No Benefit to the Estate — TOTAL of disallowed amounts: $129.48

The court denies requests for fees relating to services that do not benefit the estate or that are not necessary to the administration of the case. 11 U.S.C. § 330(a)(4)(A). An attorney's internal work prior to retention to determine whether the attorney's firm satisfies the disinterestedness requirement of section 327 of the Bankruptcy Code does not provide benefit to the estate and is not compensable.

(2) Duplication of Services — TOTAL of disallowed amounts: $4,416.74

The Court denies the allowance of compensation for services that duplicate those of another professional or paraprofessional. See 11 U.S.C. § 330(a)(4)(A)(i). Reduction in fees is warranted if multiple attorneys from the same firm appear in court on a motion or argument or for a conference, unless counsel adequately demonstrates that each attorney present contributed in some meaningful way. In re Pettibone, 74 B.R. 293, 307 (Bankr. N.D. Ill. 1987) (Schmetterer, J.) ("A debtor's estate should not bear the burden of duplication of services. If found in the record, such duplication shall be disallowed by the court as unnecessary."). In this case, the court found no explanation for the third attorney at the trial.

ITEMIZATION OF FEES AND COSTS REQUESTED BY THE UNITED STATES TRUSTEE

NOW COMES PATRICK S. LAYNG, the United States Trustee for Region 11 (the "U.S. Trustee"), by his attorneys, Jeffrey S. Snell, M. Gretchen Silver, and Elizabeth Brusa, and pursuant the Court's Order dated April 11, 2018, submits his itemization of the fees and costs he requests relating to his Motion for Sanctions in the above-captioned case.

The U.S. Trustee does not request attorney fees for many aspects of this litigation.1 The time itemized below was recorded by the U.S. Trustee's counsel substantially contemporaneous with the task performed and/or was objectively verified by counsel based on other records. With the exceptions of Robert Schaller's deposition, the October 25, 2017 hearing on pretrial motions, and the trial itself, the U.S. Trustee has limited his requests to the time of one attorney for each task, irrespective of how many attorneys actually participated.2 The hourly rates at which compensation is sought are calculated using a Department of Justice formula designed to capture the Department's actual costs per hour, and reflect the hourly rates in effect at the time each given task was performed.3

Throughout the below itemization, attorneys' names are abbreviated with initials, as follows:

Initials Individual Role JSS Jeffrey Snell U.S. Trustee's counsel MGS M. Gretchen Silver U.S. Trustee's counsel EB Elizabeth Brusa U.S. Trustee's counsel AB Adam Brief Assistant U.S. Trustee PL Patrick Layng U.S. Trustee TD Thomas Durkin Respondent's counsel KM Keevan Morgan Respondent's counsel AM Alanna Morgan Respondent's counsel

The fees and costs requested by the U.S. Trustee fall into seven categories and total $52,363.46.

Category Description Amount Number Fees relating to Robert Schaller's Rule I 9011 Motion served upon the U.S. $ 119.93 Trustee on November 8, 2016 II Fees relating to attempted deposition of $ 554.40 Elton Tabor Fees relating to the Motion to Compel III Robert Schaller to comply with the $ 4,054.05 U.S. Trustee's Request for Production Fees relating to the deposition of IV Robert Schaller and related discovery $ 3,548.62 issues V Fees relating to pretrial matters $ 9,677.61 VI Fees relating to trial $ 29,314.45 VII Transcription Costs $ 5,094.40 Total: $ 52,363.46

I. Fees relating to Robert Schaller's Rule 9011 Motion served upon the U.S. Trustee on November 8, 2016.

After the U.S. Trustee filed his Motion for Sanctions against Robert Schaller in the above-captioned case, Schaller served a Rule 11 motion upon the U.S. Trustee and his counsel. The U.S. Trustee requests fees for the following time expended in connection with Schaller's motion:

UST Date Attorney Task Time Rate Amount 11/8/2016 JSS Review Rule 9011 motion for sanctions sent by Keevan Morgan (KM) 0.5 $ 171.33 $ 85.67 Call with Patrick Layng (PL) (with Adam Brief (AB) and M. Gretchen 11/9/2016 JSS Silver (MGS)) to discuss sanctions motion 0.2 $ 171.33 $ 34.27 Fees Total Time: 0.7 Requested: $ 119.93

II. Fees relating to attempted deposition of Elton Tabor

During discovery in the above-captioned case, the U.S. Trustee attempted to conduct a deposition of Elton Tabor. The deposition was originally scheduled for March 27, 2017, by subpoena issued February 23, 2017. The original deposition was rescheduled after a series of communications from Robert Schaller's counsel that began one week prior to the scheduled deposition date. The effort to depose Mr. Tabor was eventually abandoned after several attempts to schedule the deposition proved unsuccessful. The U.S. Trustee requests fees for the following time relating to the attempted deposition of Mr. Tabor:

Date UST Task Time Hourly Rate Amount Attorney Receive and review letter from 3/20/2017 JSS Thomas Durkin (TD) regarding 0.2 $ 173.25 $ 34.65 deposition of Elton Tabor. Consult internal DOJ guidance materials regarding TD's request that PL author a letter to Elton 3/20/2017 JSS Tabor suggesting that he retain 0.4 $ 173.25 $ 69.30 counsel under the Criminal Justice Act or speak with the Federal Defender Draft response to TD's 3/20/17 letter re Elton Tabor (0.3); meet 3/21/2017 JSS with PL, AB, and Elizabeth 0.8 $ 173.25 $ 138.60 Brusa (EB) to discuss response (0.5) Receive TD's email re: contacting Elton Tabor and read 3/22/2017 JSS (.1), forward to PL and AB and 0.5 $ 173.25 $ 86.63 meet to discuss response (.2), draft and send response (.2) 3/23/2017 JSS Review letter from TD to Elton 0.2 $ 173.25 $ 34.65 Tabor. Discuss with PL and AB Draft letter and amended subpoena to Elton Tabor 3/23/2017 JSS rescheduling deposition for April 0.4 $ 173.25 $ 69.30 18, 2017. Discuss content of letter with AB before sending 3/26/2017 JSS Review KM's email to witness 0.1 $ 173.25 $ 17.33 re: UST Letter of 3/24 Discuss UST response to KM 3/27/2017 JSS 3/26 email to Elton Tabor with 0.1 $ 173.25 $ 17.33 AB and MGS Email to KM requesting clarification as to exactly what 3/27/2017 JSS he contends was misstated in 0.1 $ 173.25 $ 17.33 UST's 3/23 correspondence that is the premise of his 3/26 email to Elton Tabor 4/3/2017 JSS Review email to Elton Tabor 0.1 $ 173.25 $ 17.33 from KM on 3/31/17 Follow-up email to KM re: 4/6/2017 JSS misstatement he was referencing 0.1 $ 173.25 $ 17.33 in email to Elton Tabor Phone call from Elton Tabor re 4/17/2017 JSS rescheduling deposition set for 0.1 $ 173.25 $ 17.33 4/20 Email Robert Schaller's counsel 4/17/2017 JSS re: rescheduling of Elton Tabor's 0.1 $ 173.25 $ 17.33 deposition Fees Total Hours: 3.2 Requested: $ 554.40

III. Fees relating to Motion to Compel [Dkt. 55]

On April 12, 2017, the U.S. Trustee filed his Motion to Compel Robert Schaller to produce documents in response to a February 1, 2017, Request for Production propounded under Rule 34. (See Dkt. 55.) The U.S. Trustee requests fees for the following time relating to the Motion to Compel:

UST Hourly Date Attorney Task Time Rate Amount Legal research re: privilege and 4/7/2017 JSS work product for motion to compel. 4 $ 173.25 $ 693.00 Begin drafting motion Work on drafting motion to compel. Review chronology of events and 4/10/2017 JSS correspondence for recitation of 5 $ 173.25 $ 866.25 facts. Edit and redraft motion to compel 4/11/2017 JSS (4.5); send to MGS and EB, and 4.6 $ 173.25 $ 796.95 incorporate their comments (.1) Final revisions and proofreading of 4/12/2017 JSS motion to compel; add footnotes and 1.2 $ 173.25 $ 207.90 detail re: LBR 7037-1 Draft proposed order for motion to 4/12/2017 JSS compel 0.2 $ 173.25 $ 34.65 4/18/2017 JSS Email to KM re: audio recordings 0.1 $ 173.25 $ 17.33 Review response to Motion to Compel. Note the incomplete 4/20/2017 JSS quotation in paragraph 17. Locate 0.5 $ 173.25 $ 86.63 the 3/20 email from which quotation taken Email KM regarding omitted 4/20/2017 JSS quotation in paragraph 17 of 0.3 $ 173.25 $ 51.98 Response to Motion to Compel Receive and review email from KM 4/20/2017 JSS asking if his omission in paragraph 0.1 $ 173.25 $ 17.33 17 was "inadvertent" Email KM re audio recordings, and 4/20/2017 JSS lack of response to 3/18 inquiry 0.1 $ 173.25 $ 17.33 Court hearing on motion to compel 4/20/2017 JSS and motion to extend discovery for 0.2 $ 173.25 $ 34.65 UST. In court 1 hour. Discussion outside court with KM, 4/20/2017 JSS Elton Tabor, Michael Oreluk and GS 0.2 $ 173.25 $ 34.65 re: Tabor's review of documents by 5/12 Discussion with KM after post-hearing group discussion. Topics 4/20/2017 JSS were audio recording and privilege 0.3 $ 173.25 $ 51.98 generally Email to KM and other counsel re: 4/26/2017 JSS audio recordings (3rd request) 0.2 $ 173.25 $ 34.65 Email to KM following up on Tabor 5/17/2017 JSS 4/26 letter and document production 0.1 $ 173.25 $ 17.33 5/17/2017 JSS Attempted call with KM to ET 0.1 $ 173.25 $ 17.33 Email to KM re: follow-up items 5/18/2017 JSS from 5/17 production 0.2 $ 173.25 $ 34.65 Follow-up email to KM re: 5/24/2017 JSS outstanding documents and audio 0.1 $ 173.25 $ 17.33 5/25/2017 JSS Status hearing re: Motion to Compel 0.1 $ 173.25 $ 17.33 Receive and respond to email from 5/25/2017 JSS KM re: missing documents 0.1 $ 173.25 $ 17.33 Two emails with KM re: attorney 6/7/2017 JSS fees incurred in connection with 0.2 $ 173.25 $ 34.65 motion to compel Draft status report re: Motion to 6/13/2017 JSS Compel 0.3 $ 173.25 $ 51.98 6/15/2017 JSS Receive, review and respond to email from KM re: status report 0.2 $ 173.25 $ 34.65 Receive and respond to email from 6/15/2017 JSS KM where he alleges that UST is 0.1 $ 173.25 $ 17.33 violating court order re: joint status report Call with KM re: status report. Agree to send him a modified draft 6/15/2017 JSS of the UST report if he wants to add 0.2 $ 173.25 $ 34.65 language re: Schaller's position and file as joint report 6/15/2017 JSS Modify UST status report draft to 0.2 $ 173.25 $ 34.65 become joint report and send to KM Receive draft status report from KM that is riddled with pagination 6/15/2017 JSS issues. Word copy will not open. 0.1 $ 173.25 $ 17.33 Respond to KM and advise that the UST will file his own report Finalize and file UST status report 6/15/2017 JSS re: Motion to Compel 0.1 $ 173.25 $ 17.33 Receive and review email from KM 6/15/2017 JSS claiming that the UST has violated a 0.1 $ 173.25 $ 17.33 court order Prepare for status hearing on motion 6/29/2017 JSS to compel. Gather emails from KM 2 $ 173.25 $ 346.50 and put together timeline to document the reality of discovery history in this case Appear for 11:00 AM status hearing. 6/29/2017 JSS Wait for case to get called (2+ 2.2 $ 173.25 $ 381.15 hours). Status (.2) Total Hours: 23.4 Fees $ 4,054.05 Requested:

IV. Deposition of Robert Schaller and Related Discovery Issues

The U.S. Trustee conducted a deposition of Robert Schaller on June 1, 2017. In advance of the deposition, time had to be expended to pair emails and attachments produced in .pdf format by Robert Schaller during discovery. The U.S. Trustee requests fees for the following time relating to the deposition and discovery issues:

Date UST Task Time Hourly Rate Amount Attorney 5/25/2017 JSS Prepare for Robert Schaller 1.2 $ 173.25 $ 207.90 deposition Email to KM re: pairing 5/25/2017 JSS attachments with emails produced 0.1 $ 173.25 $ 17.33 in .pdf format Email exchange with KM about outstanding documents. Respond to 5/30/2017 JSS KM's assertion that production of 0.3 $ 173.25 $ 51.98 disorganized materials with attachments separated from emails is proper. Note text of Rule 34(b) Review KM email re: Tabor documents and his presumption of 5/30/2017 JSS an interview between the U.S. 0.3 $ 173.25 $ 51.98 Trustee and Mr. Tabor. Respond to same. Multiple emails from and to KM regarding Rule 34, and his insistence that it has been complied 5/30/2017 JSS with. KM requests that the UST 0.4 $ 173.25 $ 69.30 bear the burden of identifying emails in Robert Schaller's production, and he will then look for the attachments. 5/30/2017 JSS Preparation for Schaller deposition 4.5 $ 173.25 $ 779.63 5/31/2017 JSS Preparation for Schaller deposition 4 $ 173.25 $ 693.00 6/1/2017 JSS Preparation for Schaller deposition 1.5 $ 173.25 $ 259.88 6/1/2017 JSS Attend deposition of Robert 4 $ 173.25 $ 693.00 Schaller 6/1/2017 MGS Attend Deposition of Robert 4 $ 181.16 $ 724.64 Schaller Fees Total Hours: 20.3 Requested: $ 3,548.62

V. Pretrial Matters

In advance of the trial in this matter, the U.S. Trustee's counsel expended considerable time preparing exhibits, his pretrial statement, his motion in limine and objection to Robert Schaller's pretrial statement, and his omnibus response to Schaller's objection and four separate motions in limine. The U.S. Trustee requests fees for the following time relating to these efforts:

UST Hourly Date Attorney Task Time Rate Amount 8/24/2017 MGS Preparation of UST pretrial 1.5 $ 181.16 $ 271.74 statement 9/16/2017 JSS Preparation of UST pretrial 2 $ 175.95 $ 351.90 statement and exhibits 9/17/2017 JSS Preparation of UST pretrial 1.5 $ 175.95 $ 263.93 statement 9/18/2017 JSS Preparation of UST pretrial 7.5 $ 175.95 $ 1,319.63 statement and exhibits 9/19/2017 JSS Preparation of UST pretrial 7.5 $ 175.95 $ 1,319.63 statement and exhibits 9/19/2017 MGS Review draft of UST pretrial 2.7 $ 181.16 $ 489.13 statement and provide edits 9/20/2017 JSS Finalize UST pretrial statement 3 $ 175.95 $ 527.85 Email to Alanna Morgan (AM) requesting Schaller Exhibit 73 after 9/26/2017 JSS verifying that the UST never 0.2 $ 175.95 $ 35.19 received a video in discovery. 9/27/2017 JSS Follow-up email to KM requesting 0.1 $ 175.95 $ 17.60 Schaller Exhibit 73 9/27/2017 JSS Draft response to Schaller proposed 1.5 $ 175.95 $ 263.93 stipulated facts 9/28/2017 JSS Follow-up email to AM, KM, and 0.1 $ 175.95 $ 17.60 TD requesting Schaller Exhibit 73 10/2/2017 JSS Email to KM re Exhibit 73 0.2 $ 175.95 $ 35.19 10/5/2017 JSS Review and respond to email from 0.2 $ 175.95 $ 35.19 AM re: stipulations 10/5/2017 JSS Review two emails from KM 0.1 $ 175.95 $ 17.60 conveying his view of stipulations Work on comments to Schaller proposed stipulated facts and 10/6/2017 JSS transmit to AM by 9 a.m. per 1.5 $ 175.95 $ 263.93 agreement Review stipulation feedback from 10/6/2017 JSS AM that is untimely and 0.2 $ 175.95 $ 35.19 incomplete 10/6/2017 JSS Send additional copies of UST 0.1 $ 175.95 $ 17.60 exhibits to AM per her request Research admissibility of Zillow 10/6/2017 JSS valuations for motion in limine re: 0.5 $ 175.95 $ 87.98 Schaller Exhibits 51 and 52 Finish Zillow research. Draft 10/10/2017 JSS motion in limine re: Zillow 0.7 $ 175.95 $ 123.17 Exhibits 10/10/2017 JSS Draft objection to Schaller's 2.2 $ 175.95 $ 387.09 Pretrial Statement Final review of motion in limine re: 10/11/2017 JSS Zillow Exhibits and Objection to 0.5 $ 175.95 $ 87.98 Schaller's Pretrial Statement before filing Receive and respond to two emails 10/11/2017 JSS from KM regarding rebuttal 0.2 $ 175.95 $ 35.19 exhibits 10/11/2017 JSS Receive and review multiple emails 0.3 $ 175.95 $ 52.79 from AM about stipulated facts 10/12/2017 JSS Review four motions in limine and 0.8 $ 175.95 $ 140.76 objection filed by Robert Schaller Begin drafting omnibus response to Robert Schaller's four motions in limine and objection to U.S. 10/18/2017 JSS Trustee's pretrial statement. Review 7 $ 175.95 $ 1,231.65 transcripts and documents from other cases cited in Robert Schaller's papers Finish drafting omnibus response to 10/20/2017 JSS Robert Schaller's motions in limine 4.5 $ 175.95 $ 791.78 and objection. Circulate internally for comments. Review, comment on, and discuss 10/20/2017 MGS with JSS motions in limine and 2 $ 181.16 $ 362.32 objection 10/20/2017 JSS Review and revise draft of motion 0.1 $ 175.95 $ 17.60 for leave to file omnibus response 10/24/2017 MGS Prepare for court hearing on 2 $ 181.16 $ 362.32 10/25/17 10/25/2017 JSS Attend court hearing on pretrial 2 $ 175.95 $ 351.90 motions 10/25/2017 MGS Attend court hearing on pretrial 2 $ 181.16 $ 362.32 motions Fees Total Time: 54.7 Requested: $ 9,677.61

VI. Trial

The U.S. Trustee requests fees for the following time expended in connection with the trial on the Motion for Sanctions that commenced November 6, 2017:

VII. Transcript Costs

The U.S. Trustee requests reimbursement of the following out-of-pocket costs incurred in connection with the Motion for Sanctions in the above-captioned matter:

Item Cost $ 60.00 Transcripts of 11/22/16 and 1/26/17 hearings in In re Elton Tabor $ 1,222.30 Transcript of June 1, 2017, deposition of Robert V. Schaller Transcript of 11/6/17 trial day $ 1,251.30 Transcripts of 11/7/17 trial day $ 383.15 Transcript of 11/8/17 trial day $ 926.35 Transcript of 11/27/17 trial day $ 994.25 Transcript of 11/29/17 trial day $ 257.05 Total Costs Requested: $ 5,094.40

WHEREFORE, the U.S. Trustee requests the Court enter an order awarding the above fees and costs and providing any other and further relief as is just.

FootNotes


1. For example, the U.S. Trustee has not sought fees for: the drafting of his original Motion for Sanctions and Reply to Respondent's Objection to same; much of the time expended on discovery; or the time expended preparing his post-trial brief.
2. For example, all three of the U.S. Trustee's counsel in this matter attended the majority of the witness preparation meetings, but fees are sought for the time of only one attorney for each meeting.
3. The formula is comprised of the hourly rate of the attorney's annual salary, a benefit recapture component based on the hourly rate, and a fixed Department of Justice overhead expense.
Source:  Leagle

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