10/29/2007 281 Application for Professional Fees for Robert J Brown, Debtor's Attorney, fee: $98603.00, expenses: $3463.54., filed by Robert J Brown. Last day to file objections: 11/19/2007. (Attachments: # 1 Continuation of Main Document # 2 Proposed Order) (Brown, Robert) (Entered: 10/29/2007)
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Doc 281
IN RE:
PLASTICON INTERNATIONAL, INC.
DEBTOR.
Case No. 07-50934
Chapter 11
FINAL APPLICATION OF WYATT, TARRANT & COMBS, LLP, FOR ALLOWANCE OF PROFESSIONAL FEES AND REIMBURSEMENT OF EXPENSES
Wyatt, Tarrant & Combs, LLP (“Applicant”), counsel for the Debtor, Plasticon International, Inc., pursuant to 11 U.S.C. §§ 327 and 328, hereby submits this Final Application for Allowance of Professional Fees and for Reimbursement of Expenses. This Application covers the period from the commencement of the bankruptcy proceedings on May 16, 2007, through August 29, 2007.
1. Pursuant to an Order entered on June 5, 2007 (Docket No. 56), the Debtor was authorized to employ Applicant as its counsel under a general retainer to perform all necessary professional services in connection with the Debtor’s Chapter 11 proceeding. Applicant has performed such duties since the Petition was filed herein on May 16, 2007.
2. This is the Final Application filed by Wyatt, Tarrant & Combs, LLP, seeking compensation for professional services rendered and reimbursement of expenses during the period May 16, 2007, through August 29, 2007.
3. To date Wyatt, Tarrant & Combs, LLP, has been paid $12,175.45 by the Debtor for filing fees, expenses and services delivered prepetition.
4. The fee for professional services rendered in this matter for the time period covered is $102,066.54 which sum consists of $98,603.00 for attorney and paralegal fees and $3,463.54 for expenses. An itemized listing of all services performed is attached hereto.
5. Included in the itemized statement is a list of Wyatt, Tarrant & Combs, LLP, lawyers and paraprofessionals who have rendered professional services for the Debtor in connection with this case. The compensation requested in the Final Application is reasonable for the legal services rendered. The rates charged for the legal services are the standard rates charged by Wyatt, Tarrant & Combs, LLP, for professional services rendered by the same lawyers and legal assistants on other matters. The time spent and the fees charged are reasonable for the tasks undertaken, taking into account all relevant factors. The services rendered were performed within a reasonable amount of time, commensurate with their complexity, importance, and the nature of the problems at hand.
6. All services for which compensation is requested were performed pursuant to orders of this Court, or in the representation of the Debtor. The services rendered by Wyatt, Tarrant & Combs, LLP, including all of the services detailed in this application, were actually rendered and were necessary to the effective and efficient representation of the Debtor.
7. No agreement or understanding has existed or does exist between Wyatt, Tarrant & Combs, LLP, and any other person or entity for the sharing of compensation received or to be received by Wyatt, Tarrant & Combs, LLP, in connection with the services rendered for Debtor in this case.
8. This case involved complex bankruptcy issues, matters of corporate governance, defense of litigation and day-to-day operating matters. Services were performed without the meaningful assistance of accountant, schedule preparers or other professionals.
9. The services giving rise to the fees requested herein include the continued organization and analysis of Debtor’s financial status; continual advice regarding the operations of its business; advice and analysis regarding the Debtor’s relationship with its subsidiary, Pro Mold, Inc.; responses to creditors’ extensive requests for information; responses to numerous contentious objections and motions; and routine Chapter 11 debtor representation. The services include limited participation by litigation counsel in depositions of the debtor’s representatives and of third parties.
10. Wyatt, Tarrant & Combs, LLP, requests reimbursement of expenses incurred and paid by Wyatt, Tarrant & Combs, LLP, in the course of representation of the Debtor. The following guidelines were used in calculating the amount of expenses properly chargeable under the circumstances.
(a) Where a charge is made and is identified as postage or special mailing, the charge is billed at actual cost paid. The postage charges for which reimbursement is claimed are the actual charges paid for postage.
(b) Overnight courier services, such as Federal Express, Airborne Express, etc., were used only when the exigencies of time and security required. Overnight courier services are charged at the actual charge for the shipment.
(c) Photocopies are charged to the client at $0.15 per page. This rate approximates the actual cost incurred by Wyatt, Tarrant & Combs, LLP, for producing the required copies. A total of 9,653 pages of copies were made, at a total charge of $1,447.95.
(d) A limited amount of computer assisted legal research time is charged to the Debtor in this application. The amount charged by Wyatt, Tarrant & Combs, LLP, in this application for computer assisted legal research is in accordance with the firm’s standard charges for such services.
(e) Meals and travel charges, when properly chargeable to the client, were charged at the actual cost.
(f) Charges relating to third party vendors are billed at their actual cost.
11. Wyatt, Tarrant & Combs, LLP, is holding a retainer attributable to this debtor in the amount of $27,829.11.* When it became appropriate for debtor to obtain replacement counsel, Applicant suggested that a portion of that retainer, consisting of one-half of the balance after deduction of out-of-pocket expenses, be turned over to replacement counsel to hold as a retainer. Assuming the allowance of Applicant’s fees and expenses or some portion thereof, the expenses and one- half of the remaining retainer would be paid to Wyatt, Tarrant & Combs, LLP. Accordingly, in the event the Court approves this application, Applicant seeks payment from the retainer of expenses in the amount of $3,463.54 and payment for services performed in the amount of $12,182.78; the remaining retainer, in the amount of $12,182.79 should be turned over to Fowler Measle & Bell PLLC to be held as a retainer.
* Debtor and the Debtor in the companion case of Pro Mold, Inc., Case No. 07-50935, paid a single retainer of $55,658.22 in anticipation of jointly administered proceedings; however, when the Court declined to allow joint administration, the retainer was split between the two estates with each allocated $27,829.11.
12. As described in the Motion by Wyatt, Tarrant & Combs, LLP, to Withdraw From Representation of Debtor filed contemporaneously with this Application an event occurred which caused Applicant to suggest that Debtor obtain replacement counsel. That event was the discovery that a partner in the firm of Wyatt, Tarrant & Combs, LLP, held an equity position in Debtor.
13. The value of the partner’s stock was virtually worthless and his ownership did not necessarily disqualify Wyatt, Tarrant & Combs, LLP, from representation of Debtor. See In re Timbers, Inc., 187 B.R. 240 (Bankr. W.D. Tenn. 1995). Nevertheless, it was determined that the creation of prophylactic measures to wall off that partner was not justified by the representation and a decision was made to advise Debtor to obtain replacement counsel.
14. Subsequently, an application was filed to employ Fowler Measle & Bell PLLC as replacement counsel and such firm has exercised primary duties of representation since such filing.
15. A separate notice will be issued to all parties in interest informing them of this Application and of their right to support or object to the Application.
WHEREFORE, Applicant asks this Court to approve the requested fees for professional services rendered to the estate in the amount of $98,603.00 and reimbursement of necessary and reasonable expenses in the amount of $3,463.54 for a total requested of $102,066.54 and to direct Applicant to pay itself the amount of $15,646.32 from its retainer and to turn over to Fowler Measle & Bell PLLC the remaining amount of $12,182.79 to be held in escrow pending further Court orders.
Respectfully submitted,
/s/ Robert J. Brown
Robert J. Brown
WYATT, TARRANT & COMBS, LLP
250 West Main Street, Suite 1600
Lexington, KY 40507-1746
Telephone: (859) 233-2012
Facsimile: (859) 259-0649
E-mail: Lexbankruptcy@wyattfirm.com
CERTIFICATE OF SERVICE
This is to certify that a true and correct copy of the foregoing Final Application of Wyatt, Tarrant & Combs, LLP, for Allowance of Professional Fees and Reimbursement of Expenses has been served electronically in the method established under CM/ECF Administrative Procedures Manual and the Local Court Standing Order dated July 25, 2002, and to the parties listed below via facsimile, electronic and/or first-class, postage prepaid U.S. mail on this 29th day of October, 2007.
Ellen Arvin Kennedy
Fowler, Measle & Bell, PLLC
300 West Vine Street, Suite 600
Lexington, KY 40507
John L. Daugherty
Rachelle C. Williams
Office of the U.S. Trustee
100 East Vine Street, Suite 500
Lexington, KY 40507
/s/ Robert J. Brown
Robert J. Brown |
