Bankr. No.:
86-30136
Chapter:
12
Date of Decision:
March 8, 1989
Issue:
86-30136 -Earl Hanson and Ruby Hanson
87-30147 - Harold Assman and Jim Assman
87-30079 - Lower Brule Construction
88-10078 - Ward Lemmon and Norman Lemmon
88-30036 - Gar Schindler and Kathleen Schindler
88-30037 - Donald Schindler and Bonnie Schindler
Court approval of professional compensation from estate funds.
Ruling:
Travel Time - Professionals should be compensated at their full reasonable hourly rate of necessary travel hours, unless the travel fees become too large a percentage of the total fees applied for, exclusive of expenses and sales tax. Because the geographic locations of the court points does not always coincide with the attorney's residence and because of the limited number of attorneys in the District who practice bankruptcy law, the debtor's ability to hire qualified counsel would be unduly chilled if travel was not fully compensable.
Mileage Expense - Section 330(b)(2) allows a professional reimbursement from the estate for "actual, necessary expenses". The Court allowed a mileage expense of 24 cents per mile, regardless of the economy of the auto driven. (This is the standard mileage rate the I.R.S. presently allows taxpayers for autos used in business).
Paraprofessional Billing - If paralegal work is to be compensable, the qualifications of the assistant should be established to justify the charge.
Adequate Itemization - B.R. 2016. Problem of inadequately itemized applications is not limited to travel related fees and expenses - In re Pothoven, 84 B.R. 579, 584 (1988), citing In re Pettibone Corp., 74 B.R. 293 (Bkrtcy. N.D. Ill. 1987; In re S.T.N. Enterprises, Inc., 70 B.R. 823 (Bkrtcy. D. Vt. 1987); In re Doyle - Lunstra Sales Corp., 19 B.R. 1003, 1005 (D. S.D. 1982).
Full Bankruptcy Court Decision: