Honorable Timothy A. Barnes
Chapter 7
FINDINGS OF FACT AND CONCLUSIONS OF LAW IN SUPPORT OF ORDER AWARDING TO ARNSTEIN & LEHR LLP, SPECIAL COUNSEL FOR TRUSTEE, FOR ALLOWANCE AND PAYMENT OF FIRST INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES
| TOTAL FEES REQUESTED: |
$ 53,576.00 |
TOTAL COSTS REQUESTED: |
$ 991.27 |
| TOTAL FEES REDUCED: |
$ 678.00 |
TOTAL COSTS REDUCED: |
$ 0.00 |
| TOTAL FEES ALLOWED: |
$ 52,898.00 |
TOTAL COSTS ALLOWED: |
$ 991.27 |
| TOTAL FEES AND COSTS ALLOWED: $ 53,889.27 |
The attached rime 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 appear on the left of each underlined entry. The numerical notations correspond to the enumerated paragraphs below.
(1) Unauthorized Work - TOTAL of disallowed amounts $ 634.50
The Court denies the allowance of compensation for work done prior to the authorization of retention. In re Spanjer Bros., Inc., 203 B.R. 85, 94 (Bankr. N.D. Ill. 1996) (Squires, J.) ("The Court will not retrospectively allow any of the time expended prior to the time of the authorized retention because to do so would be to reward any delay or tardiness in promptly seeking retention. To allow bootstrapping of objected to fees paid at the expense of unsecured creditors undermines the policy in favor of prompt application for retention by professionals who will be seeking compensation from the bankruptcy estate. See generally 11 U.S.C. § 327 (prerequisite to the allowance of any fees or expenses that professional be employed); In re Peoples Sap. Corp., 114 B.R. 151, 154 (Bankr.N.D.Ill.1990) ('In the absence of a court order approving the Applicant's employment, there is no statutory basis upon which the Court can make a fee award.')").
(2) Lumping - TOTAL of disallowed amounts (10% of affected entries): $ 43.50
The Court may impose a ten percent penalty on entries that appear to be "lumping." The Court will reduce each entry marked as such per the penalty. In re Wildman, 72 B.R. 700, 709 (Bankr. N.D. Ill. 1987) (Schmetterer, J.) ("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."). Dated: April 4, 2017
/s/_________
Timothy A. Barnes
United States Bankruptcy Judge
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