UNITED STATES BANKRUPTCY COURT 

NORTHERN DISTRICT OF ILLINOIS 

EASTERN DIVISION 

In re: 

FRANK ZASADNY, Jr., and 

LAURA ZASADNY, 

 Debtors. 

Chapter 7 

Bankruptcy No. 16-25112 

Honorable Pamela S. Hollis 

COVER SHEET FOR FIRST AND FINAL FEE 

APPLICATION OF MANDELL MENKES LLC 

Name of Applicant: Mandell Menkes LLC. 

Authorized to Provide 

Professional Services to: Joji Takada, not individually, but as the 

Chapter 7 Trustee of the bankruptcy estate 

of Frank Zasadny, Jr. and Laura Zasadny 

Period for Which 

Compensation is Sought: 

December 2, 2016 through April 14, 2017. 

Amount of Fees Sought: $ ___45,000___ 

Amount of Expense 

Reimbursement Sought: 

$ None 

This is a: First and Final Application 

The aggregate amount of fees and expenses paid to the Applicant to date 

for services rendered and expenses incurred herein is: $ 0.00 . 

 

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UNITED STATES BANKRUPTCY COURT 

NORTHERN DISTRICT OF ILLINOIS 

EASTERN DIVISION 

In re: 

FRANK ZASADNY, Jr., and 

 LAURA ZASADNY, 

 Debtors. 

Chapter 7 

Bankruptcy No. 16-25112 

Honorable Pamela S. Hollis 

NOTICE OF APPLICATION 

Please take notice that on May 5, 2017, at 10:00 a.m. or as soon 

thereafter as counsel may be heard, the undersigned attorneys shall appear 

before the Honorable Pamela S. Hollis, United States Bankruptcy Judge for the 

Northern District of Illinois, on the 2nd Floor of the Joliet City Hall Building at 

150 West Jefferson Street in Joliet, Illinois, and then and there shall present 

The Trustee’s First and Final Application for Compensation of His Special 

Counsel, Mandell Menkes LLC, a copy of which is attached hereto and 

herewith served upon you. 

April 18, 2017 Respectfully submitted, 

Joji Takada, not individually, 

but as Chapter 7 Trustee of the 

bankruptcy estate of Frank 

Zasadny, Jr. and Laura Zasadny

By: /s/ Jeffrey H. Bergman 

One of his attorneys 

Jeffrey H. Bergman (6194442)

MANDELL MENKES LLC 

One North Franklin Street, Suite 3600 

Chicago, Illinois 60606 

Phone: (312) 251-1014 

E-mail: jbergman@mandellmenkes.com

 

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CERTIFICATE OF SERVICE 

Jeffrey H. Bergman, an attorney, hereby certifies that on April 18 2017, 

he caused a true and correct copy of the foregoing Notice of Motion and 

Trustee’s First and Final Application for Compensation of His Special 

Counsel, Mandell Menkes LLC, to be filed with the Clerk of the Bankruptcy 

Court using the CM/ECF system, which will electronically notify the parties 

listed with the Court. Those parties that are not listed on the Court’s electronic 

notifying system, will receive the above notice and motion via U.S. Mail, 

postage prepaid and deposited in the mailbox located at One North Franklin, 

Chicago, IL. 

Mailing Information for Case 16-25112 

Electronic Mail Notice List

The following is the list of parties who are currently on the list to receive email notice/service 

for this case. 

 Jeffrey Bergman jbergman@mandellmenkes.com, 

ngagen@mandellmenkes.com;docket@mandellmenkes.com 

 Patrick S Layng USTPRegion11.ES.ECF@usdoj.gov 

 Eric A Mitchell tbell@mlawgroup.net, attorneymitchell@aol.com 

 Joji Takada trustee@takadallc.com, jtakada@ecf.epiqsystems.com 

 Zane L Zielinski trustee@zanezielinski.com, fax@zanezielinski.com 

Manual Notice List – VIA U.S. MAIL 

American Express 

P.O. Box 981537 

El Paso, TX 79998

Chase Bank USA 

PO Box 15298 

Wilmington, DE 19850

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Citicards 

701 E 60th St N 

Sioux Falls, SD 57104

Midwest Laminating and Coating, Inc. 

Attn: Jo-Ann Miller 

4600 W 72nd St, Chicago, IL 60629

Discover Bank 

Discover Products Inc. 

PO Box 3025 

New Albany, OH 43054-3025

Discover Card 

P.O. Box 15316 

Wilmington, DE 19850

Fifth Third Bank 

5050 Kingsley Drive 

Cincinnati, OH 45227

First Merit Bank 

3 Cascade Plz, Ste 3 

Akron, OH 44308

First National Bank of Omaha 

PO Box 3412 

Omaha, NE 68103

Harris Bank 

111 W Monroe Street, Floor 6 W 

Chicago, IL 60603

Harris Bank 

PO Box 94034 

Palatine, IL 60094

Kohl's 

P.O. Box 3043 

Milwaukee, WI 53201

Synchrony Bank 

Attn: Bankruptcy Dept 

PO Box 965007 

Orlando, FL 32896

Timothy E. Bell 

Mitchell Legal Advocates 

54 N Ottawa St 

Suite 100 

Joliet, Il 60432 

(Counsel for Debtors and the Defendant)

/s/ Jeffrey H. Bergman 

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UNITED STATES BANKRUPTCY COURT 

NORTHERN DISTRICT OF ILLINOIS 

EASTERN DIVISION 

In re: 

FRANK ZASADNY, Jr., and 

 LAURA ZASADNY, 

 Debtors. 

Chapter 7 

Bankruptcy No. 16-25112 

Honorable Pamela S. Hollis 

TRUSTEE’S FIRST AND FINAL APPLICATION FOR 

COMPENSATION OF HIS SPECIAL COUNSEL, 

MANDELL MENKES LLC 

Joji Takada, not individually, but as Chapter 7 trustee (the “Trustee”) of 

the bankruptcy estate of Frank Zasadny, Jr. and Laura Zasadny (the 

“Debtors”), hereby submits his first and final application (the “Application”), 

pursuant to 11 U.S.C. §§ 330, 331 and 507(a)(1), seeking compensation 

totaling $45,000 for legal services performed by the Mandell Menkes LLC. 

(“Mandell Menkes”), special counsel to the Trustee, during the period of 

December 2, 2016, through and including April 14, 2017 (the “Application 

Period”). In support of its Application, Mandell Menkes respectfully states as 

follows: 

JURISDICTION 

1. This Court has jurisdiction over this motion pursuant to 28 U.S.C. §§ 

157 and 1334, and Local Rule 40.3.1(a) of the United States District Court for 

the Northern District of Illinois. 

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2. Venue of the above-captioned case (the “Case”) and of this motion is 

proper pursuant to 28 U.S.C. §§ 1408 and 1409. 

3. This matter is a core proceeding within the meaning of 28 U.S.C. §§ 

157(b)(1) and (b)(2)(A). 

THE ADVERSARY PROCEEDING 

4. On August 4, 2016 (the “Petition Date”), the Debtors filed their 

voluntary Chapter 7 bankruptcy in this Court. The Trustee is the duly 

appointed and qualified Chapter 7 trustee of the Debtors’ bankruptcy case. 

5. Prior to February 2012, Frank Zasadny, Sr. (“Frank Senior”), who is 

Debtor Frank Zasadny, Jr.’s (Frank Junior”) father, held property located at 

6886 Island Court, Coloma, Michigan (the “Michigan Property”) as a joint 

tenant with right of survivorship along with Gloria Saenger. Ms. Saenger died in 

February of 2012, and by operation of law, Frank Senior, as survivor, became 

the sole owner of the Michigan Property. 

6. On June 18, 2012, Frank Senior deeded the Michigan Property to 

himself and Frank Junior as joint tenants, with right of survivorship. Frank 

Junior therefore held an undivided 50% interest in the Michigan Property. 

7. On June 18, 2015, Frank Senior and Frank Junior deeded the 

Michigan Property to Frank Senior for no consideration or for nominal 

consideration (the Transfer”). As a result of this Transfer, Frank Senior now 

owned the Michigan Property by himself. On the same day, June 18, 2015, 

Frank Senior signed and recorded a “lady bird” deed, pursuant to which he 

kept sole ownership of the Michigan Property, with the right to sell it, but with 

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the provision that if he owned it at his death, it would then automatically go to 

Frank Junior. 

8. On December 2, 2016, this Court granted Trustee’s Motion to Retain 

Special Counsel, and authorized the Trustee to retain attorney Jeffrey H. 

Bergman and his law firm, Mandell Menkes, to prosecute an adversary 

proceeding seeking to avoid the Transfer as a fraudulent conveyance. The 

Court’s December 2, 2016 Order stated that the Trustee was authorized to 

retain Mr. Bergman and Mandell Menkes as Special Counsel pursuant to the 

Retainer Agreement attached to the motion, which provided for a contingent 

attorneys’ fee equal to one-third of any recovery, and further stated that 

“Special Counsel will be entitled to fees equal to one-third of the recovery on 

the litigation related to the transfer of 6886 Island Court, Coloma, Michigan to 

Frank Zasadny, Senior.” 

9. On behalf of the Trustee, Mandell Menkes filed an Adversary 

Complaint against Frank Senior and Frank Junior on December 6, 2016, 

Adversary Case No. 16-00711 (the “Adversary Case”), which sought to avoid the 

Transfer. 

10. Subsequently, the Trustee determined that his maximum recovery if 

it took the Adversary Case to trial, won an judgment, and collected the entire 

judgment amount, was approximately $150,000. On Behalf of the Trustee, 

Mandell Menkes reached an agreement with Frank Senior and Frank Junior to 

settle the Adversary Case with a payment of $135,000. The Court entered an 

Order approving the settlement agreement on March 24, 2017. 

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11. On April 14, 2017, Frank Senior made a payment of $135,000 to the 

Trustee pursuant to the agreement to settle the Adversary Case. 

FEE APPLICATION 

12. To aid the Court in its review of this Application, the Trustee’s 

counsel has divided this Application into three parts. Part I describes the 

actions taken and results obtained by counsel. Part II describes the 

qualifications and areas of expertise of the Trustee’s attorneys. Part III 

describes the manner in which fees and expenses were calculated by the 

Trustee’s attorneys. 

I. Services Performed 

Mandell Menkes spent a total of 20.5 hours drafting the Complaint in 

the Adversary Case, drafting a Motion for a Default Judgment, negotiating the 

settlement with Frank Senior’s counsel, drafting the Settlement Agreement and 

the Motion to Approve Settlement, and in various communications with the 

Trustee’s counsel and the Zasadnys’ counsel regarding the settlement and 

payment of the settlement amount. Mandell Menkes spent an additional 1.0 

hours drafting this fee application. 

II. Attorney Providing Services for this Estate 

Jeffrey H. Bergman is a partner at Mandell Menkes. Mr. Bergman is a 

1986 graduate of University of Wisconsin-Madison School of Law. Before 

joining Mandell Menkes, he was a partner at Ungaretti & Harris, LLP. Mr. 

Bergman specializes in business litigation, and has represented trustees, 

debtors, and creditors in bankruptcy cases. Mr. Bergman is also an Adjunct 

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Professor at Northwestern Pritzker School of Law, where he teaches 

Introduction to Trial Advocacy. Mr. Bergman performed all of the services 

provided by Mandell Menkes in its representation of the Trustee in the 

Adversary Case. 

III. Calculation of Fees 

This is the Trustee’s first and final application for compensation and 

reimbursement of fees and expenses incurred by Mandell Menkes during the 

Application Period. 

Pursuant to its Retainer Agreement with the Trustee, Mandell Menkes 

seeks a total of $45,000 in attorneys’ fees, which is equal to one-third of the 

$135,000 received by the Trustee in settlement of the Adversary Case. This 

amount is reasonable in light of (a) the contingent fee arrangement agreed to by 

the Trustee and approved by the Court in its Order authorizing retention of 

special counsel; (b) the risk that Mandell Menkes took that there would be no 

recovery or a nominal recovery; (c) the risk the Mandell Menkes took that it 

would be necessary to take the case to trial, potentially requiring hundreds of 

hours of attorney time, in order to obtain any recovery; (d) the extraordinary 

result Mandell Menkes obtained by quickly and efficiently negotiating a 

settlement that was equal to 90% of the Trustee’s maximum anticipated 

potential recovery; and (e) the fact that a one-third contingent fee is customary 

for attorneys who undertake to represent plaintiffs on a contingent fee basis. 

No agreement or understanding exists between Mandell Menkes and any 

other person for the sharing of compensation received or to be received in 

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connection with this Case, other than as disclosed or authorized pursuant to 

11 U.S.C. §§ 327, 328, 330 and 331. No compensation has been promised to 

Mandell Menkes other than as disclosed or approved by this Court. Mandell 

Menkes certifies that there is no agreement between the firm and any other 

party regarding the sharing of fees except with the firm’s partners, nor has the 

firm discussed or negotiated the amount of its fees with any party except the 

Trustee. Finally, Mandell Menkes represents that it is and remains a 

disinterested party, and does not hold any relationship adverse to the Estate. 

BASIS FOR THE REQUESTED RELIEF 

13. Section 327 of the Code authorizes a trustee, with the court’s 

approval, to employ professionals to represent the trustee. Section 328(a) of the 

Code states that the trustee, with the court’s approval, “may employ or 

authorize the employment of a professional person under section 327. . . on 

any reasonable terms and conditions of employment, including on a retainer, 

on an hourly basis, on a fixed or percentage fee basis, or on a contingent fee 

basis.”(Emphasis supplied.) 

14. Under Section 330(a)(1)(A) of the Code, the Court may award a 

professional person “reasonable compensation for actual, necessary services 

rendered[.]” 

15. Fee arrangements approved by a court under Section 328 prevent the 

court from later modifying the fee arrangement, except in rare circumstances. 

See In re Nat’l Gypsum Co., 123 F.3d 861, 862 (5th Cir. 1997) (discussing the 

dichotomy between compensation under Section 328 and Section 330 and 

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holding: “If prior approval is given to a certain compensation, § 328 controls 

and the court starts with that approved compensation, modifying it only for 

developments unforeseen when originally approved.”). As noted by the Third 

Circuit: 

Generally, a Bankruptcy Court reviewing a professional's fee 

application under Section 330(a)(1) must award that professional 

a fee that is “reasonable” in light of certain factors set out in that 

provision. But when a Bankruptcy Court has “fix[ed]. . . terms and 

conditions” of employment for an application to employ that was 

approved, the Court may allow compensation on different terms or 

conditions only if the court's initial approval “prove[s] to have been 

improvident in light of developments not capable of being 

anticipated at the time” of approval. 

In re Federal Mogul-Global Inc., 348 F.3d 390, 396-97 (3d Cir. 2003) (citations 

omitted). 

16. In this case, there have been no developments not capable of being 

anticipated at the time the Court entered its December 2, 2016 Order 

authorizing the Trustee to retain Mandell Menkes for a one-third contingent fee 

that have proved the Court’s approval of that fee arrangement improvident. The 

Court should therefore approve the requested one-third contingent fee of 

$45,000. 

NOTICE 

17. Pursuant to Federal Rule, Bankruptcy Procedure 2002, this 

Application was served on all creditors that have timely filed claims, the U.S. 

Trustee, and the Debtor’s attorney. While Mandell Menkes is giving 17 days 

notice instead of 21, the Trustee’s lawyer has stated to Mandell Menkes that he 

does not object to shortened notice. Further, the largest creditor in this case, 

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Midwest Laminating and Coating, Inc., has told Mandell Menkes that they do 

not object to this fee application. 

 WHEREFORE, Mandell Menkes LLC respectfully requests that this Court 

enter an Order: a) allowing Mandell Menkes compensation for actual, necessary 

legal services in the amount of $45,000; b) authorizing the Trustee to pay 

Mandell Menkes’s compensation; and c) granting such other relief as the Court 

deems just and equitable. 

Dated: April 18, 2017 Respectfully submitted, 

JOJI TAKADA, not individually 

but as the chapter 7 trustee of 

the bankruptcy estate of 

FRANK ZASADNY, Jr. and 

LAURA ZASADNY

By: /s Jeffrey H. Bergman 

One of his Attorneys 

Jeffrey H. Bergman (6194442)

MANDELL MENKES LLC 

One North Franklin Street, Suite 3600 

Chicago, Illinois 60606 

Phone: (312) 251-1014 

E-mail: jbergman@mandellmenkes.com

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