Opinion ID: 812961
Heading Depth: 2
Heading Rank: 2

Heading: The Deduction of $1,403.07 in Consulting Fees

Text: Finally, the Trustee argues that the Bankruptcy Court committed clear error in its mathematical calculation of the judgment amount. Specifically, the amount paid to the Bank during the preference period was $262,825.09. After deducting the $13,579.98 in the Debtor’s account before the liquidation, the Court gave the Bank credit for an additional $6,403.07 which was paid to the Bank on July 23 and 26, 2010, $5,000 of which represented a deposit to the retail liquidator for his services. The Bank officer testified, however, that the other $1,403.07 for which credit was given was paid by the Bank for the consulting fee the retail liquidator charged the Bank for originally assessing the situation at the Bank’s request. This was a service ordered by the Bank for the primary purpose of informing it on the best chance it would have to recover on its entire indebtedness. The Court did not include any mathematical calculation details in its Order, but based on the Court’s judgment amount, it appears that the Court gave the Bank credit for the full $6,403.07. The Trustee appears to concede that the Court should have deducted the $5,000 deposit, but asserts that Court should not have deducted the $1,403.07. We agree. The Bank should be required to pay for the services it hired to analyze its own best strategy, and the Court committed clear error in giving it credit for that expenditure. Therefore, the amount of the judgment against the Bank should be increased by $1,403.07. ACCORDINGLY, the Bankruptcy Court’s decision is AFFIRMED in all respects except as to the deduction of $1,403.07, which is REVERSED. The net 14 amount of the preferential transfer is $244,227.11. The case is REMANDED to the Bankruptcy Court for entry of judgment in that amount. 15