Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes

IN RE TENNESSEE HOSPITALITY dba BEST WESTERN OLD HICKORY INN, Chapter 11.

MEMORANDUM OPINION AND ORDER RE (1) APPLICATION FOR COMPENSATION OF ATTORNEY-JOHN VAN DEN BOSCH; (2) LIMITED OBJECTION OF B. GAIL REESE; (3) OBJECTION OF AMRESCO MGMT.; (4) U.S. TRUSTEE'S OBJECTION

GEORGE BOSWELL, Bankruptcy Judge

The Court conducted a hearing on the Application for Compensation of Attorney and the various objections thereto on August 25, 1999. FED. R. BANKR. P. 9014. Pursuant to 28 U.S.C. § 157(b)(2), this is a core proceeding. After reviewing the testimony from the hearing and the record as a whole, the Court makes the following findings of facts and conclusions of law. FED. R. BANKR. P. 7052.

On August 4, 1999, the debtor-in-possession, Tennessee Hospitality dba Old Hickory Inn, ("Tennessee Hospitality"), filed an application for the payment of attorney fees and expenses to John Van den Bosch, Jr., ("Van den Bosch"), in the amount of $9,700.00, $100.00 of which represents expenses. Said fees and expenses are requested pursuant to § 503(4) of the Bankruptcy Code for services rendered to the debtor between September 24, 1998 and May 21, 1999.

Debtor has paid Van den Bosch a retainer of $3000.00 which is being held in escrow pending approval of the attorney fees.

Debtor filed for chapter 11 relief on September 23, 1998. The Order approving Van den Bosch's employment was entered on September 28, 1998. Upon the filing of a Motion for Appointment of Trustee, the Court appointed B. Gail Reese as chapter 11 trustee on January 29, 1999.

In objecting to the Application for fees, Amresco alleges that Van den Bosch's "efforts, . . ., provided little or no value to the estate, did relatively little to benefit the estate, and, when performed, were not undertaken in a reasonable period of time commensurate with the complexity, importance and nature of the task at hand" Amresco also alleges that Van den Bosch was not a disinterested person as required by the Bankruptcy Code because the debtor's principle paid the $3,000 retainer out of his personal funds.

In their objection to the fee application, the U.S. Trustee alleges that $1,200.00 of the requested fee represents services performed after the appointment of the chapter 11 trustee which are non-compensable under § 330 of the Code.

Finally, in the chapter 11 trustee's objection to the fee application, B. Gail Reese alleges that the statements and schedules filed in this case have been of limited assistance her in administering the case due to the lack of information concerning the amounts of claims and other matters. For this reason, Reese objects to the total amount of the requested fees.

After examining the record in this case, the Court finds that Van den Bosch was a disinterested person as contemplated by § 327(a) of the Bankruptcy Code. No evidence was presented at the hearing that payment of the retainer by the debtor's principle in any way affected Van den Bosch's representation of the debtor. In re Missouri Mining, Inc., 186 B.R. 946, 947 (Bankr. W.D. Mo. 1995). The Court also finds that the explanation given by Van den Bosch at the hearing regarding the lack of information in his statements and schedules to be reasonable based on the circumstances of this case. Finally the Court finds that the application for fees and expenses, when reduced by $600.00 is reasonable compensation for the services performed by Van den Bosch in this case. See 11 U.S.C. § 330(a).

ORDER

It is therefore ORDERED that the Application for Compensation of Attorney-John Van den Bosch is GRANTED IN THE AMOUNT OF $9,000.00 for fees and $100.00 for expenses.

It is so ordered.

Use AI to get other relevant cases.

Comments

IN RE TENNESSEE HOSPITALITY, (Bankr.W.D.Tenn. 1999)
(Sep 13, 1999)