Centr e Squa r e We st  1500 Ma rket Str ee t, 38

t h

Floor  Philade lphia , PA 19102-2186

Pho ne : (215) 972-7777  Fax: (215) 972-7725

BALTIMORE CHESTERBROOK HARRISBURG PHILADELPHIA PRINCETON WASHINGTON WILMINGTON

KRISTIN L. CALABRESE

Phone: (215) 972-7533

Fax: (215) 972-1911

kcalabrese@saul.com

www.saul.com

September 21, 2004

The Honorable Thomas N. O’Neill, Jr.

United States District Court for the

Eastern District of Pennsylvania

U.S. Courthouse

601 Market Street, Room 4007

Philadelphia, PA 19106-1749

Re: Lumbermens Merchandising Corporation v. Regal Holdings, LLC, Eastern

District of Pennsylvania, No. 04CV4245.

Dear Judge O’Neill:

You asked that we provide you with the following information regarding the attorneys’

fees of $5,174.00 that Lumbermens Merchandising Corporation (“Lumbermens”) seeks from

Regal Holdings, LLC (“Regal Holdings”) in connection with the confession of judgment against

Regal Holdings filed with the Court on September 7, 2004.

The attorneys’ fees sought are those associated with filing the confession of judgment in

this matter through August 31, 2004. Attorneys’ fees after this date have not been included in

the confession.

The $5,174.00 number represents the actual amount billed by Saul Ewing LLP in

furtherance of preparing and filing the confession of judgment through August 31, 2004. The

predominant amount of time in connection with this effort was billed by me at my rate of

$185.00 per hour and included reviewing the settlement agreements, researching the rules of

civil procedure applicable to confessions of judgment and drafting and preparing the relevant

documents for filing. The remainder of the time was billed by James G. Rosenberg, a senior

partner at Saul Ewing responsible for Lumbermens, at his rate of $415.00 per hour, and included

analysis of the file and discussions with Lumbermens and myself regarding filing the confession

of judgment and alternative options available to the client.

These fees are reasonable because they represent the actual amount of time billed in

furtherance of enforcing the confession of judgment through August 31, 2004. In debt collection

Case 2:04-cv-04245-TON Document 2 Filed 09/21/04 Page 1 of 3
actions, attorneys’ fees are given to the creditor as compensation for the expenses and trouble it

may incur in collection of a claim. Foulke v. Hatfield Fair Grounds Bazaar, Inc., 173 A.2d 703,

706 (Pa. Super. Ct. 1961). Pennsylvania courts have noted that a creditor should be able to

recover the total debt owed, plus interest, without diminution for expenses which he may be

forced to pay. Id. Lumbermens incurred significant legal expenses during the underlying

lawsuit and settlement from which this confession of judgment arose. Therefore, expecting

Regal Holdings to pay Lumbermens’ attorneys’ fees, as agreed to by Regal Holdings in the

Warrant of Attorney in the Promissory Note, for instituting an action to recover Regal Holdings’

unpaid debt upon default of its agreement is eminently reasonable. Furthermore, equity requires

that Lumbermens be allowed to recover the full value of the debt, plus interest, without

diminution based on the expenses it incurred in filing the confession of judgment.

Because the attorneys’ fees of $5,174.00 represent the actual attorneys’ fees billed to

Lumbermens by Saul Ewing LLP in furtherance of entering a confession of judgment against

Regal Lumber through August 31, 2004, and Regal Lumber agreed to pay these fees in the

Warrant of Attorney, recovery of these fees by Lumbermens is both reasonable and equitable.

Respectfully submitted,

_________kc571_____________

Kristin L. Calabrese, Esquire

Attorney I.D. No. 89762

Saul Ewing LLP

Centre Square West

1500 Market St., 38

th

Floor

Philadelphia, PA 19102

(215) 972-7777

Attorneys for Plaintiff Lumbermens

Merchandising Corporation

Case 2:04-cv-04245-TON Document 2 Filed 09/21/04 Page 2 of 3
CERTIFICATE OF SERVICE

I hereby certify that a true and correct copy of the foregoing letter was served upon Regal

Holdings LLC, by first-class mail, on September 21, 2004, at the following address:

Regal Holdings LLC

171 South Work Street

Falconer, New York, 14733

____________kc571___________

Kristin L. Calabrese

Case 2:04-cv-04245-TON Document 2 Filed 09/21/04 Page 3 of 3