Opinion ID: 199309
Heading Depth: 4
Heading Rank: 2

Heading: The two claims as a convenient trial unit.

Text: 34 We examine whether the two claims form a convenient trial unit with an eye towards the conservation of judicial resources by preventing needless duplication of litigation. See Porn, 93 F.3d at 36. In contrast to the evaluation of the factual relationships we undertook above, this inquiry focuses upon what would happen at trial. See Restatement (Second) of Judgments §a24 cmt. b (1982). We determine whether the witnesses or proofs required to prove the factual basis of both claims substantially overlap. See Mass. Sch. of Law, 142 F.3d at 38 ([W]here the witnesses or proof needed in the second action overlap substantially with those used in the first action, the second action should ordinarily be precluded.) (quoting Porn, 93 F.3d at 36). The Iannochinos argue that the proof is different, pointing primarily to the necessity of expert witnesses for their malpractice claims. This contention, however, ignores the essential nature of the bankruptcy court's examination of the fee application. Although no experts are called in a fee hearing, this does not mean that there is no expert evaluation of the services rendered in this case. The bankruptcy court has directly seen the results of the attorney's work for which a fee award is requested. Moreover, a judge is presumed knowledgeable as to the fees charged by attorneys in general and as to the quality of legal work presented to him by particular attorneys; these presumptions obviate the need for expert testimony such as might establish the value of services rendered by doctors or engineers. In re W.J. Servs., Inc., 139 B.R. 824, 828 (S.D. Tex. 1992). To the extent that the malpractice claim would require an expert witness or witnesses not required by the fee hearing, this difference in proof does not eliminate the substantial overlap of the remaining proofs required to determine the essential issue in both claims, namely the quality of the defendants' legal services to the Iannochinos. 35 Of course, this substantial overlap between the proof required for each claim would not matter for the purposes of res judicata if the Iannochinos could not have brought their malpractice claim in opposition to Aframe's fee application. See Kale v. Combined Ins. Co. of Am., 924 F.2d 1161, 1167 (1st Cir. 1991) (noting that res judicata cannot bar a claim that could not have been raised in the first action). Though the Aframe fee application was a contested matter in bankruptcy, this does not mean, as the Iannochinos contend, that the bankruptcy court's evaluation of the fee application would be limited to a purely administrative analysis of the fees, leaving it no authority to undertake a full trial--including a potential award of damages--on the malpractice claim. Indeed, the Intelogic Trace court has directly addressed the powers of the bankruptcy court in this context: Although the fee hearing was a contested matter [the] fee application was a claim against [the debtor]. Had [the debtor] objected to the fee application and included with its objection a claim for affirmative relief on account of alleged malpractice, the matter would have become an adversary proceeding. In re Intelogic Trace, Inc., 200 F.3d at 389-90 (citations omitted). The bankruptcy rules specifically provide for objections to the allowance of a claim, a provision that the Iannochinos used by filing their initial objection to the application. See Fed. R. Bankr. P. 3007. Furthermore, when an objection is combined with a demand for monetary damages under this rule, as in a professional malpractice claim, the fee hearing becomes an adversary proceeding in which these issues may be addressed. Fed. R. Bankr. P. 3007 (providing for an adversary proceeding when an objection to a claim is joined with a demand for relief of the kind specified in Rule 7001); see also Fed. R. Bankr. P. 7001(1) (defining a proceeding to recover money or property as an adversary proceeding). The fact that the Iannochinos did not take advantage of these procedures does not alter the fact that they could have done so and thus tried the malpractice claim at the time of the fee application. 36