______________________________x In re POLARIS INVESTMENT CO., INC., Case No. F89-00771-HAR Chapter 11 Debtor. ORDER PROVIDING FOR INTERIM ATTORNEY FEES AND COSTS, EXTENSION OF DROP-DEAD DATE, AND SETTING DISCLOSURE STATEMENT HEARING ______________________________x
Robert Noreen filed a "Notice of Time for Filing Objection to Interim Application for Fees" requesting attorney fees in the related cases of Case No. F89-00771-HAR, In re Polaris Investment, Inc. and F89-00772-HAR, In re Wallace and Ruth Burnett.
Mr. Noreen requested total fees and expenses in the two cases as follows (corrected, since he appears to have used the wrong figure for 75% of the fees):
CASE FEES 75% FEES EXPENSE TOTAL POLARIS $17,270.00 $12,922.50 $885.17 $13,807.67 BURNETT $17,460.00 $13,095.00 $1,001.52 $14,096.52
2 ABR 42No actual application was filed and no cogent breakdown of costs and attorney fees by particular task was filed. The "requests" were objected to by the U.S. Trustee for a number of defects including lack of description. See, In re Four Star Terminal, Inc., 42 B.R. 419, 435 (Bankr.D.Alaska 1984). The court has no way of knowing if these fees are justified. It is within the court's discretion to completely deny the application without prejudice or reduce it. Cf. In re Puget Sound Plywood, Inc., 924 F.2d 955, 959 (9th Cir. 1991).
It is not even certain that Mr. Noreen has been approved by the court to act as attorney for the estate. Such a defect puts his entitlement to fees in jeopardy since the issuance for a nunc pro tunc order is far from a rubber stamp. In re Crook, 79 B.R. 475 (9th Cir. BAP 1987).
Nonetheless, Mr. Noreen is charging an extremely low hourly rate for Alaska of $100.00 per hour, and the court is aware that he has spent substantial time on this case. It may be that his fees will be cut or denied for the earlier months because of his failure to get an order approving his employment, but he should be permitted to file an application for nunc pro tunc employment and serve notice of it on the matrix. Therefore,
IT IS ORDERED that,
1. ALLOWANCE OF INTERIM ATTORNEY FEES AND COSTS, SUBJECT TO DISGORGEMENT- The court allows the sum of $5,000.00 in each the Polaris and Burnett cases (i.e., $10,000.00 total) as interim 2 ABR 43 attorney fees, subject to disgorgement if it is ultimately determined that nunc pro tunc employment is not approved and this $5,000.00 payment is more than he will ultimately have earned. The balance of the requested fees will not be allowed until Mr. Noreen has satisfied the court that he has an order for his employment. The $5,000.00 payment shall not be drawn until Mr. Noreen files an application for nunc pro tunc employment and serves notice of that application on the entire master mailing matrix in the case. The notice shall be specific enough to advise that he began his employment in 1989, but neglected to file an application (if that is the case) in a timely manner. It will allow enough time for parties to object due to the nunc pro tunc employment. Costs are allowed, $885.17 in the Polaris case and $1,001.52 in the Burnett case.
2. DROP DEAD DATE FOR CONVERSION- Any drop dead date to convert this case to chapter 7 for failure to file a plan is extended to July 1, 1991.
3. DISCLOSURE STATEMENT HEARING- A disclosure statement hearing on the plan and disclosure statement Mr. Noreen said would be filed by the end of this week is scheduled for Fairbanks for Monday, July 22, 1991, at 2:30 P.M. Notice of the disclosure statement hearing shall be mailed by debtor to the master mailing matrix no later than Monday, June 24, 1991.
2 ABR 44
DATED: June 17, 1991         HERBERT A. ROSS   U.S. Bankruptcy Judge