EUGENE WEDOFF, Bankruptcy Judge
TOTAL FEES REQUESTED: $297,610.25 TOTAL COSTS REQUESTED: $13,944.36 TOTAL FEES REDUCED: $1,236.40 TOTAL COSTS REDUCED: $183.00 TOTAL FEES ALLOWED: $296,373.85 TOTAL COSTS ALLOWED: $13,761.36
TOTAL FEES AND COSTS ALLOWED: $310,135.21
The attached time and expense entries have been underlined to reflect disallowance in whole or in part. The basis for each disallowance is reflected by numerical notations that appears on the left of each underlined entry. The numerical notations correspond to the enumerated paragraphs below.
(1) Clerical Work Not Compensable
The court disallows the compensation of clerical or stenographic employees of the professional for the performance of routine clerical or administrative activities in the normal course of the professional's business, such as photocopying, secretarial work, or routine filing. Such activities are not in the nature of professional services and must be absorbed by the applicant's firm as an overhead expense. In re Dimas, LLC, 357 B.R. 563, 577 (Bankr. N.D. Cal. 2006) (citing Missouri v. Jenkins, 491 U.S. 274, 288 n. 10 (1989)). See also In re Chellino, 209 B.R. 106, 114 (Bankr. C.D. Ill. 1996) (Paralegal, but not "clerk" services entitled to compensation at an hourly rate; clerk activities are overhead of the professional); Souza v. Miguel, 32 F.3d 1370, 1375 (9th Cir. 1994) (Trustee not entitled to reimbursement or compensation of overhead expenses such as secretarial, stenographic, clerical, and routine messenger services).
(2) Lumping
The Court may impose a ten percent penalty for "lumping." In re Wildman, 72 B.R. 700, 709 (Bankr. N.D. Ill. 1987) ("Applicants may not circumvent the minimum time requirement or any of the requirements of detail by "lumping" a bunch of activities into a single entry. [citation omitted]. Each type of service should be listed with the corresponding specific time allotment.").
(3) Overhead Costs are Non-Compensable
The Court denies reimbursement for fees or expenses that are overhead costs. Expenses which are overhead are not compensable because they are built into the hourly rate. See In re Wildman, 72 B.R. 700, 731 (Bankr. N.D. Ill. 1987). Overhead, for bankruptcy purposes, includes "all continuous administrative or general costs or expenses incident to the operation of the firm which cannot be attributed to a particular client or cost." In re Convent Guardian Corp., 103 B.R. 937, 939-40 (Bankr. N.D. Ill. 1989) (quoting In re Thacker, 48 B.R. 161, 164 (Bankr. N.D. Ill. 1985)). Meltzer, Purtill Stelle LLC 1515 E. Woodfield Road Second Floor Schaumburg, IL 60173 Ph:847-330-2400 Fax: 847-330-1231 River West Plaza-Chicago, LLC c/o JOFFCO Properties Matter #: 33195002 One Northbrook Place, Inv #: 97018, 97406, 5 Revere Drive, Suite 200 98118, 98824 Northbrook, Illinois 60062-1500 Attention: Ginny Wolfe RE: Chapter 11
EXHIBIT A TASK CODE B110 — Case Administration 12/07/09 thru 03/31/10 SUMMARY BY TIMEKEEPER
Timekeeper Category Rate Hours Amount Forrest B. Lammiman Partner 550.00 10.30 5,665.00 David L. Kane Associate 390.00 34.50 13,455.00 __________ __________ Total 44.80 19,120.00 Task Hours Date Description No. Amount Lawyer Dec-07-09 Attention to filing and service of Motions and B110 2.50 975.00 DLK Plan Documents (2.0); multiple correspondence regarding filing (.5) Dec-08-09 Revise press release (.4); messages — Korey B110 3.00 1,650.00 FBL regarding impact of Chapter 11 on arbitration (.2); calls — Paloian regarding budget and plan issues (.4); call — Crain's regarding background (.3); call and messages — Johnson regarding press issues (.3); conference — Meltzer regarding discussions with MB Financial (.2); calls — A. Joffe and G. Wolfe regarding first-day hearing (.2); review docket (.2); review motion for use of cash collateral (.3); review A. Joffe affidavit (.3); attention to Plan issues (.3). Dec-09-09 Conference — client representatives regarding B110 1.60 880.00 FBL "first-day" hearings (.5); conference — Mitchell regarding parallel negotiations with MB bank and client regarding deposition schedules (.7); meet with Lammiman regarding same (.4); correspondence regarding discovery (.6); call with Amy Joffe regarding same (.5) Mar-12-10 Review of Plan issues for risk rating (2.0) B320 2.00 850.00 ACB Mar-12-10 Work on scheduling depositions (.2); Attention B320 4.30 2,365.00 FBL to possible alternatives to plan (.4); Review documents (3.0); Review draft of response to objection to plan (.7) Mar-12-10 Meet with Balk regarding interest rate analysis B320 0.70 273.00 DLK (.3); correspondence regarding deposition schedule (.4) Mar-12-10 Review draft objection; research/review B320 1.90 741.00 AMB balloon payment cases regarding same; review related Joffco bankruptcy filings (1.9) Mar-15-10 Review and analyze Rule 30(b)(6) topics (.3); B320 3.80 2,090.00 FBL conferences — Kane regarding preparation for depositions (.2); conference — A. Joffe regarding deposition and related plan issues (1.2); revise and edit response to Motion to Dismiss (1.1); attention to scheduling of discovery (.2); review cases and articles regarding application of Till to Chapter 11 (.8) Mar-15-10 Correspondence with RSM regarding Plan and B320 3.00 1,170.00 DLK Disclosure Statement (.3); call with Sue Ulman at Zimmerman (.3); correspondence with Bank counsel regarding deposition schedule (.3); meet with Amy Joffe regarding deposition (.4); call with Michael Small regarding deposition of Missy Norris (.2); review 30(b)(6) deposition notice (.2); correspondence regarding witness lists (.4); review Proof of Claim and Ballots filed by Bank (.4); call with Ginny Wolfe regarding deposition (.5) Mar-15-10 Review Debtor's objection to order dismissing B320 1.40 546.00 AMB bankruptcy case; research regarding balloon payments; coordinate with D. Kane regarding same (1.4) Mar-16-10 Participate in depositions of A. Joffe and M. B320 10.30 5,665.00 FBL Norris (8.6); conference-Small regarding strategy (.3); conference — Kane regarding depositions and expert witness reports (.4); review Lender's objection to Plan (1.0) Mar-16-10 Call with Andy Philipsborn regarding loan B320 9.80 3,822.00 DLK documents for Plan (.4); correspondence regarding deposition schedules (.4); correspondence with Schwab counsel regarding same (.4); deposition of Amy Joffe and preparation for same (5.5); call with Peltz regarding documents/testimony matters (.4); prepare deposition outline for Ginny Wolfe (1.2); prepare deposition outline for Daniel Treisman (1.2); correspondence regarding same (.3) Mar-16-10 Research regarding balloon payments and B320 2.20 858.00 AMB review related cases (2.2) Mar-17-10 Prepare for hearing (.4); participate in hearing B320 1.40 770.00 FBL regarding several motions, including extension of cash collateral (1.0) Mar-17-10 Multiple correspondence with Ginny Wolfe B320 7.90 3,081.00 DLK regarding deposition (.5); meet with Wolfe and Treisman regarding deposition preparation (1.5); call with Jim Stamos and correspondence regarding Leon Joffe deposition (.3); defend Treisman deposition (2.0); defend Wolfe deposition (2.5); review biographies of Bank experts (.3); correspondence with Lammiman regarding status (.3); correspondence with Philipsborn and Ulman regarding reports (.4); call to Bart and Peltz regarding same (.1) Mar-18-10 Review Bank objection to Plan confirmation B320 4.60 1,794.00 DLK (1.5); call with Sue Ulman regarding appraisal issues (.5); correspondence regarding same (.3); correspondence regarding status of voting (.2); call with RSM regarding Plan analysis (.3); review and comment on Philipsborn draft (.8); correspondence regarding expert depositions (.5); call with Philipsborn regarding interest rate (.5) Mar-18-10 Research regarding Till and review cases cited B320 5.70 2,223.00 AMB in Bank of America pleading; coordinate with A. McIllece regarding same (5.7) Mar-18-10 Conference with Ann Marie Bredin and B320 2.00 400.00 AM research case law citing Till 541 USC 465 (2.0) Mar-19-10 Conference — Bredin regarding research on Till B320 0.70 385.00 FBL issues (.2); messages — DeJonker regarding adversary complaint (.1); messages — Kane regarding expert reports (.1); initial review of expert reports (.3) Mar-19-10 Research re interest rate amd review numerous B320 3.50 787.50 LAB cases re same (3.0); preparation of binder for A. Bredin re interest rate research and correspondence (.5) Mar-19-10 Correspondence with Treisman regarding B320 5.70 2,223.00 DLK voting status (.6); meet with Peltz and Bart regarding financial testimony (2.0); review and comment on Philipsborn report (1.0); correspondence with Sue Ulman (.3); modify and file witness list (.7); calls with Amy Joffe regarding settlement and Plan alternatives (.6); call with Bart regarding financial matters (.3); multiple correspondence with Lammiman regarding status (.2) Mar-19-10 Review Bank of America objection and select B320 5.70 2,223.00 AMB cases; research regarding Till Supreme Court decision and its progeny; draft summary regarding same (5.7) Mar-20-10 Review drafts — expert reports (1.4); review B320 3.60 1,980.00 FBL lender's adversary complaint (.4); review documents produced by Lender (1.0); call — A. Joffe regarding strategy (.2); work on counter to Lender's term sheet (.6) Mar-20-10 Review appraisal supplement and B320 5.30 2,067.00 DLK correspondence regarding same (.4); revise pretrial calendar/schedule (.4); review Philispborn report (.7); correspondence with Jim Stamos regarding deposition of Leon Joffe (.5); call with Amy Joffe regarding settlement options (.4); meet with Lammiman regarding confirmation related matters (.5); calls with Philipsborn (.3); prepare counteroffer to Bank of America (.8) prepare Subpoenas and Riders for Bank of America deponents (1.0); correspondence regarding same (.3) Mar-20-10 Research, summarize port-Till cases regarding B320 6.10 2,379.00 AMB interest rates in Chapter 11 Plan confirmation context (6.1) Mar-21-10 Review addendum from appraiser (.4); review B320 4.00 2,200.00 FBL and analyze cases applying Till in various contexts (3.6) Mar-21-10 Draft/edit insert regarding balloon payments for B320 4.50 1,755.00 AMB response brief and coordinate with D. Kane regarding same (3.7); review Bank of America objection and select cases cited therein (.8) Mar-22-10 Review and comment on BofA's comments to B320 0.80 340.00 JSG loan documents (.8) Mar-22-10 Work on preparation to take depositions (2.8); B320 7.60 4,180.00 FBL call — A. Joffe regarding strategy (.3); calls-Weinstein regarding subpoena (.2); review subpoena analyze response (.3); call — Small regarding subpoena on Weinstein (.2); review cases regarding interest rate and balloon payment issues (1.4); work on response to Lender's objection to plan (2.4). Mar-22-10 Correspondence with Bredin regarding interest B320 9.00 3,510.00 DLK rate and plan issues (.4); correspondence with Joy Goldman regarding replacement loan documents (.5); correspondence with Lammiman regarding Plan voting (.3); background research into Bank of America interest rate expert (.3); call with Treisman regarding voting (.2); call with RSM regarding expert report (.2); work with experts to finalize reports (1.0); begin draft of Reply in Support of Plan (5.5); meet with Lammiman and Bredin regarding same (.6) Mar-22-10 Research interest rate cases; draft insert to B320 5.80 2,262.00 AMB response brief regarding same; research balloon payment issues (5.8) Mar-09-10 Copying 915.50 E101 Mar-10-10 Delivery services/messengers — Comet Messenger 18.27 E107 Inv. #03141006102 Mar-17-10 Copying 1,250.00 E101 Mar-19-10 Copying 1,189.50 E101 Deliver y services/messengers — Comet Messenger 29.45 E107 Service Inv. #03211006102 Mar-22-10 Copying 479.25 E101 Deliver y services/messengers — Comet Messenger 16.95 E107 Service Inv. #03281006102 Mar-23-10 Litigation support vendors — LaSalle Copy Service-Inv.#124404 8.00 E118 Mar-24-10 Litigation support vendors — LaSalle Copy Service-Inv.# 124392 238.68 E118 Mar-29-10 Deposition transcripts — Veritext Chicago Reporting 1,509.95 E115 Company-Inv.#CH131122 Deposition transcripts — Veritext Chicago Reporting 668.50 E115 Company-Inv. #CH131057 Deposition transcripts — Veritext Chicago Reporting 985.00 E115 Company-Inv.#CH131064 Deposition transcripts — Veritext Chicago Reporting 883.05 E115 Company-Inv.#CH131062 Mar-31-10 Local travel — Meeting/Travel Expenses-3/31/10 14.00 E109 Local travel — Meeting/Travel Expenses-3/30/2010 14.00 E109 Local travel — Meeting/Travel Expenses-3/30/10 12.00 E109 Local travel — Meeting/Travel Expenses-3/26/10 14.00 E109 Local travel — Meeting/Travel Expenses-3/22/10 12.00 E109 Local travel — Meeting/Travel Expenses-3/17/10 16.00 E109 Other-Secretarial Overtime — D. Nichols 183.00 E124 Deposition transcripts — Veritext Chicago Reporting 771.60 E115 Company-Inv.#CHI30938 Deposition transcripts — Veritext Chicago Reporting 646.90 E115 Company-Inv.#CHI30940 _______________ Total $13,944.36