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| UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF NEW YORK --------------------------------X In the Matter of Chapter 7 JOHN F. GROSSKOPF, II, Case No. 802-80633-478
Debtor. --------------------------------X APPLICATION OF ATTORNEYS FOR CHAPTER 7 TRUSTEE FOR A FINAL AWARD OF COMPENSATION
TO: HONORABLE DOROTHY EISENBERG UNITED STATES BANKRUPTCY JUDGE: The application (the "Application") of KIRSCHENBAUM & KIRSCHENBAUM, P.C., attorneys for KENNETH KIRSCHENBAUM, Chapter 7 Trustee (the "Trustee") for the Estate of JOHN F. GROSSKOPF, II (the "Debtor"), for a final allowance of compensation, respectfully shows and alleges: I. INTRODUCTION 1. The Debtor filed a voluntary petition pursuant to Chapter 7 of Title 11 of the United States Code (the "Bankruptcy Code") on January 25, 2002 and the matter was referred to the Honorable Dorothy Eisenberg, United States Bankruptcy Judge. At the time of filing, Kenneth Kirschenbaum was appointed Chapter 7 trustee. The Trustee engaged KIRSCHENBAUM & KIRSCHENBAUM, P.C. as his counsel, and an appropriate order was entered approving such retention. II. APPLICANT'S HISTORY 2. KIRSCHENBAUM & KIRSCHENBAUM, P.C., is a law firm with offices located at 200 Garden City Plaza, Garden City, New York. KENNETH KIRSCHENBAUM, a member of Applicant's firm, was primarily responsible for supervising the handling of this matter together with STEVEN SHEINWALD, another member of the firm. Mr. Kirschenbaum and Mr. Sheinwald are admitted to practice in the Courts of record of the State of New York, as well as the United States District Court for the Eastern District of New York. 3. Applicant and its various predecessors in interest have specialized in the conduct of insolvency proceedings for over 20 years. 4. The firm of KIRSCHENBAUM & KIRSCHENBAUM, P.C., ("Applicant") and its predecessor, KENNETH KIRSCHENBAUM, P.C., have had extensive experience in all types of insolvency proceedings. In this particular proceeding Applicant has worked to protect the assets of the estate and marshal said assets. Furthermore, Applicant respectfully submits that its experience as a fiduciary of creditors has enabled it to obtain the best possible result for the creditors in this case. 5. Applicant makes this application for a final award of compensation for professional services actually, necessarily and reasonably rendered, pursuant to Sections 330(a) and 328 of the Bankruptcy Code. III. NON-PAYMENT OF RETAINER AND BASIS OF REQUEST FOR ALLOWANCE FOR COMPENSATION 6. This application is for a final award of compensation for professional services actually rendered by members and associates of applicant, attorneys for the Trustee, for the period commencing with the retention of KIRSCHENBAUM & KIRSCHENBAUM, P.C. by the Trustee to date. Applicant has not been paid a retainer in these proceedings. Additionally, to date, Applicant has not received any interim compensation, either directly or indirectly in the within Chapter 7 case, from its inception, through the date of this Application. 7. All of the services for which compensation is sought were rendered in connection with this case and were rendered on behalf of the Trustee. Applicant has been active in every stage of this proceeding. IV. TIME RECORDS AND RECEIPTS 8. Applicant has diligently and carefully maintained records of the time expended in the within proceeding. These records have been maintained and recorded on a current basis, using Applicant's Bankruptcy Management System Time Sheet computer program. An original computer printout of these records is annexed to this application. Applicant expended 6.1 hours to date in connection with the legal matters which arose in this proceeding. The schedule of time demonstrates the demands placed upon Applicant to provide those services necessary to enable the Trustee to confront the business and legal issues attendant to this case. VI. SERVICES 9. During the course of the proceeding, Applicant performed various services. For the sake of brevity, a survey of those activities are as follows: a) Reviewed each and every document filed with this court on behalf of the Debtor and various creditors; b) Responded to numerous calls and correspondence from the debtor's counsel, creditors and other interested parties; c) Prepared orders and applications on behalf of the Trustee, including order of retention of general counsel to the trustee; d) Prepared Notice to Creditors seeking an order authorizing the trustee to sell his right, title and interest in two pieces of real property; e) Attended Court in connection with trustee's application to sell his right, title and interest in two pieces of real property f) Prepared order authorizing trustee to sell his right, title and interest in two pieces of real property; g) Prepared attorney's fee application
h) Preparation of Order fixing fees (to be performed). The instant proceeding was commenced upon the filing of a voluntary petition by the debtor pursuant to Chapter 7 of Title 11 of the United States Code on January 25, 2002. In the Schedules annexed to the debtor's petition, he indicated that he held a fee interest in real property located in Mastic Beach, New York and an interest as a tenant by the entirety in real property located in Michigan. Based upon an independent investigation the trustee determined that the fair market value of the Mastic Beach property was $100,000.00 and that it was encumbered by two mortgages which aggregated the sum of approximately $76,000.00. Because the Mastic Beach property was the debtor's principal residence he claimed a $10,000.00 homestead exemption. The trustee also determined that the fair market value of the Michigan property was approximately $141,500.00 and that it was encumbered by two mortgages which aggregated the sum of approximately $75,000.00. Following extensive negotiations with the debtor, the debtor ultimately offered to purchase the trustee's right, title and interest in the Mastic Beach property for the sum of $10,000.00 over and above the claimed homestead exemption and subject to any and all liens and encumbrances and the trustee's interest in the Michigan property for the sum of $20,000.00 subject to any liens and encumbrances. Your Applicant discussed the proposed offer with the trustee during which time consideration was given to the equity in each of the properties, the claimed exemption, the entirety interest in the Michigan property, the litigation costs involved in prosecuting a lawsuit pursuant to 11 U.S.C. Section 363 and the additional administrative costs which would be incurred if the properties were sold free and clear of liens and encumbrances. After doing so, the trustee determined that the debtor's offer was fair and reasonable. As such he accepted the debtor's offer subject to creditors' objections and Bankruptcy Court approval. The trustee thereafter instructed your Applicant to prepare and serve a notice upon all creditors and interested parties, informing them of his intention to sell his right, title and interest in both properties for the total sum of $30,000.00 over and above the debtor's claimed homestead exemption and subject to any and all claims, liens and encumbrances. Your Applicant appeared before the Court in connection with the trustee's application, at which time the Court approved the sale of the trustee's interest in the two properties to the debtor. An appropriate Order was prepared by your Applicant, after which it was entered and the sale was consummated. The services rendered were necessary in the administration and completion of this case and were beneficial to the estate. Considering the facts and circumstances of this case, as previously set forth in this application, the compensation being requested is reasonable in view of the nature, the extent and the value of the services rendered. Following the final meeting of creditors, your Applicant will assist the trustee in the preparation of the notice of proposed distribution and will take whatever other steps are necessary to assist the trustee in concluding the administration of this estate. VII. DETERMINATION OF APPLICANT'S REQUESTED FEE 10. In seeking compensation in Chapter 7 cases, Applicant utilized, in part, an hourly rate structure, which is periodically revised. During the period encompassed by this application, applicant's utilized hourly rates are in the following range: Partners $250.00 - $350.00 per hour Associates $125.00 - $250.00 per hour KENNETH KIRSCHENBAUM .50 hours x $300.00 $ 150.00 STEVEN B. SHEINWALD 4.60 hours x $250.00 $ 1,150.00 TARA MORAN 1.00 hours x $ 90.00 $ 90.00 TOTAL HOURS: 6.10 TOTAL FEE: $ 1,390.00 plus out-of-pocket expenses of $39.49. TOTAL FEES AND EXPENSES: $ 1,429.49 For purposes of this Application, KIRSCHENBAUM & KIRSCHENBAUM, P.C., has calculated its fee request on the basis of hours expended, results achieved and the demands made upon applicant by the Trustee. 11. In accordance with the criteria enunciated for evaluating the fair and reasonable value of legal services, Applicant respectfully represents: a) Time and Labor Required. SEE TIME LOG. b) Novelty and Difficulty of Questions Involved. The issues that have arisen in this case are amply demonstrated by reference to the docket of the proceedings herein and this Court's first hand knowledge of the matters that have come before it. Although the matters which have arisen in this case are not particularly novel, they collectively required a substantial amount of time, and applicant's expertise in bankruptcy contributed to the efficient administration of the estate. c)Skills Requisite to Perform Legal Services, Experience, Reputation, and Ability of Applicant. Applicant believes that its expertise in the area of bankruptcy law has contributed to the administration of the estate. d) Preclusion of Other Employment by Applicant Due to Acceptance of the Debtor's Case, Time Limitations Imposed by the Client. Applicant has necessarily been affected in its ability to handle other matters. e) The Customary Fee. Applicant respectfully submits that the fee sought herein is customary and based on the usual criteria in matters of this type, given the size and complexity of the Debtor's case and is commensurate with fees Applicant has been awarded in other Chapter 7 cases. Additionally, the fee sought herein is that which is charged to its regular clients. f) Whether Fee is Fixed or Contingent. Pursuant to the statutory provisions of the Code, all fees sought by professionals employed under Section 327 of the Code are contingent upon approval by the court and are largely dependent upon the results achieved. g) Results Obtained. Through the efforts of Applicant and the Trustee the value of the Debtor's assets have been maximized for the benefit of all parties in interest. h) Nature and Length of Professional Relationship. Applicant was retained shortly after the Trustee was appointed. Since then, Applicant has acted as the Trustee's counsel specializing in insolvency matters and has counseled, advised, and represented the Trustee in all legal matters. 12. Applicant deems the fair and reasonable value of its services as counsel to the trustee to be $1,390.00 for the period through September 25, 2002 for the purpose of final allowance of compensation. 13. By this Application, Applicant additionally seeks reimbursement of one hundred (100%) percent of its actual and necessary out-of-pocket disbursements incurred during the course of rendering professional services in the sum of $39.49 for the period ending September 25, 2002. Annexed hereto and made a part hereof as Exhibit "A" is a summary schedule of said disbursements, none of which has been reimbursed. WHEREFORE, Applicant respectfully requests and prays for an order allowing compensation for services rendered in connection with this proceedin g in the amount of $1,390.00, plus reimbursement of $39.49 for out-of-pocket expenses, for a total of $1,429.49 for the period ending September 25, 2002. Dated: Garden City, New York September 25, 2002 KIRSCHENBAUM & KIRSCHENBAUM, P.C. Attorneys for Chapter 7 Trustee
By: STEVEN B. SHEINWALD, Esq. A Member of the Firm 200 Garden City Plaza Garden City, New York 11530 (516) 747-6700 |