In re Alda

Summarized by James Bailey , Butler Snow LLP
15 years 3 months ago

Citation:

Sixth Circuit Bankruptcy Appellate Panel, Case No. 08-58713, Opinion, Dec. 2, 2010

Tag(s):

6th Circuit

Ruling:

Sixth Circuit Bankruptcy Appellate Panel held that denial of chapter 13 Debtor's attorney's application for fees and expenses was not an abuse of discretion and that, under the facts of the case, the Debtor's attorney failed to establish "excusable neglect" for the failure to timely file the fee application and to file the documents previously ordered by the Bankruptcy Court. By order of the Bankruptcy Appellate Panel, the precedential effect of this decision is limited to the case and parties pursuant to 6th Cir. BAP LBR 8013-1(b). See also 6th Cir. BAP LBR 8010-1(c).

Procedural context:

Chapter 13 Debtors' attorney filed application for fees and expenses which included detailed time records and complied with Fed. R. Bankr. P. 2016 but failed to file application within time frame set by the Bankruptcy Court and failed to include a Memorandum detailing why the case had been pending for more than one year without confirmation of a plan as ordered by the Court.

Facts:

Chapter 13 case was filed in September 2008. in August 2009, the Bankruptcy Court denied confirmation of the Debtors' plan and dismissed the case. In September 2009, the Debtors' attorney filed a motion to reinstate which was granted in December 2009. In January 2010, the Bankruptcy Court confirmed the Debtors' plan but refused to approve any fee to the the Debtors' attorney. The Confirmation Order provided that the Debtors' attorney shall file before February 12, 2010 an intemized fee application along with a Memorandum explaining why the case had been pending for more than one year without a plan having been confirmed. On February 18, 2010 (six days beyond the deadline set by the Court) the Debtors' attorney filed an itemized fee application but failed to file the required Memorandum. The Bankruptcy Court denied the fee application as being untimely and because the Debtors' attorney had not included the required Memorandum. The Debtors' attorney filed a motion under Rule 60(b) to reconsider the denial asserting "excusable neglect" as a basis for reconsideration. The Bankruptcy Court denied the Rule 60 motion and the Debtors' attorney appealed.

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