Court Opinion

ID: 9858969
Source: CourtListenerOpinion
Date Created: 2023-09-24 17:50:42.332536+00
Date Added: 2024-06-11T10:12:54.849598
License: Public Domain

ORDER DENYING MOTION FOR REHEARING AND RECONSIDERATION
Counsel’s Motion for Rehearing and Reconsideration of this Court’s Order fixing his attorney fees at $400,000 versus the $625,000 requested and his 37-page brief including footnotes, probably deserves a longer and more detailed response than the Court intends to give.
Suffice it to say that none of the various factors mentioned in the cases cited were overlooked. I did not reduce or penalize counsel for the debtor by disallowing time or reducing the value of their services. Nor did the fact that Mr. DeLeve was responsible for 75% of the time charges have any bearing on my conclusion.
I did not apply the Lindy theory or any other theory of multiples. Simply stated, I followed Bankruptcy Rule 11-31 and Rule 219(c)(1) and then considered the outstanding results and the rise in the cost of living.
At the time of considering Mr. DeLeve’s application, I also had under consideration that of the attorney for the Receiver. Both counsel worked long and hard on this case. I finally concluded that an allowance of $100.00 per hour for all time spent by all partners, associates, para-legals, etc. would fairly and adequately compensate both counsel.
In the case at bar 3,801.25 hours was involved which came to $380,125. This I increased by approximately $20,000 to reach $400,000.
I did the same on Mr. Margolin’s fee. His application showed 4,869 total hours. This comes out to $486,900 which I increased by some $13,000 to the $500,000 allowance.
There was no attempt on my part to find that one attorney contributed to the successful reorganization more than the other; both did a remarkable job.
In my judgment both allowances were fair and reasonable. To have done otherwise would have been unfair and unreasonable.
In the case at bar I could have taken other routes to reach the $400,000 conclusion. For example, I could have easily found that the customary rates from $45 to $100 an hour were excessive when undertaking a bankruptcy case. I could have found that instead of $100 an hour for Mr. Berman, $75 would be allowed; for Mr. DeLeve $65 an hour, etc. This method would have probably worked out to a so-called “lode star” fee of something in the neighborhood of $250,000. I could have then used some multiple to add another 50% and reached the same allowance of $400,-000. Perhaps I should have taken that route and that would have ended the question. In a pre-Code case, the 8th Circuit would have affirmed in a minute under the firmly established bankruptcy case law unless it would reduce the fee under the “economic spirit” rule.
In the final analysis it apparently boils down to this: the Court has one idea of what is a reasonable fee and counsel has another. So be it. This Court does not believe that the Lindy doctrine has any application to bankruptcy cases.
I would be remiss if I did not publicly state that Mr. DeLeve’s application for fees and accompanying briefs and exhibits are *10the finest I have ever seen in my twelve years on the bankruptcy bench. My only regret is that I cannot see my way clear to increase his allowance.
The Motion for Rehearing and Reconsideration is denied.