HERBERT A. ROSS
U.S. Bankruptcy Judge

      A hearing was held on March 7, 1991 in Juneau on the trustee's First Interim Accounting and various fee applications. The debtors and Pacificorp Credit, Inc. objected to the final application of Ulin Dann & Lambe. The fees are high, and Pacificorp argues that Ulin Dann has over-lawyered the case, run up an exorbitant bill, and obtained a poor result in the end. In essence, Ulin Dann has used poor "billing judgment" in the eyes of Pacificorp. See Unsecured Creditors Committee v. Puget Sound Plywood, Inc. (In re Puget Sound Plywood, Inc.), 924 F.2d 955, ____ (9th Cir. 1991).

      Ulin Dann argues that the end result was not a complete loss, and, in any event, the debtors had in effect been the victims     1 ABR 414  of an unwarranted and erroneous summary judgment ruling the U.S. District Court and a rubber stamp by the 9th Circuit. Pacificorp's predecessor, Northwest Acceptance Corp. (NWAC), had a claim against debtors exceeding $1 million dollars in the U.S. District Court action. I believe Ulin Dann might have achieved, at one time, a settlement for about $350,000 to $400,000 at a time when their fees were probably less than $100,000. The ultimate fees for the NWAC matter are in the range of $130,000 to $140,000 instead, but had the stars aligned correctly, Ulin Dann would have been heroes. NWAC's own fees for this matter, as far as I can glean, are probably in the same ballpark.

      Ulin Dann was not expected to guarantee the result. In re James Contracting Group, Inc., 120 B.R. 868, 873-4 (Bankr. N.D.Ohio 1990). The result obtained is, of course, a factor in weighing the allowance, but primarily, the court is directed by 9th Circuit authority to start with the lodestar analysis. In re Manoa Finance Co., 853 F.2d 687, 690 (9th Cir. 1988) and In re Yermakov, 718 F.2d 1465, 1471 (9th Cir. 1983). I believe that the Ulin Dann bill, while large, is not unwarranted. There has been no criticism of the bills on a line-item basis, except by Ray Olsen. Ulin Dann has acknowledged, but not admitted, an incident in the bankruptcy court which Ray Olsen says required an $18,000 payment by the Olsens to NWAC for attorney fees as an oversecured creditor (as it was believed at that time) by agreeing to reduce their billing by $18,000. At the hearing on March 7, 1991 Ulin Dann agreed to a     1 ABR 415  further deduction of $5,000 for any fees it might have charged for the incident.

      Therefore, IT IS ORDERED that,

      1. The final fees and costs of Ulin Dann & Lambe are allowed by approving its interim and final fee applications submitted in this case at various times from 1985 through June, 1990, subject to a reduction of $5,000. The "Supplemental Summary Final Fee Application/Request For Payment of Approved But Not Yet Paid Fee Ulin Dann & Lambe & Tremper & Company," dated February 27, 1991 and filed by Ulin Dann may be used by the trustee as a guide to final compensation ($104,086) and costs ($4,504) due in the total amount of $108,590. Please call any discrepancies or mistakes in the figures noted by any party to the court's attention.

      2. The debtors have asked that the court order the abandonment of legal malpractice claims alleged against Ulin Dann, its attorneys, and any predecessor firms for its representation of the debtors before and during time of this bankruptcy case. The trustee is authorized to assign any such claims to Ulin Dann for a further reduction of the $108,590 by $12,500. This is to be settled after 30 days from the entry of this order, but debtors have a right of first refusal to purchase the assignment of these claims from the trustee (or have them abandoned to the debtors) by paying the trustee $12,500 in cash by collected funds to Gordon Zerbetz, trustee, c/o Bernd Guetschow, Esq., 425 "G" Street, Suite 650, Anchorage, AK 99501 within 30 days of the entry of this order.     1 ABR 416  If the funds are paid by the debtors, the trustee shall forward the additional $12,500 to Ulin Dann, and it and its attorneys may then be subject to any claims for legal malpractice which the debtors may raise.