MJ Renick
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51 Seacord Road
New Rochelle, NY 10804  

 

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914 813 0880

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  MJ Renick
April 2014 

Although I have served as a Fee Examiner, I spend much of my time in the bankruptcy and restructuring areas of practice as an accountant/financial advisor.  Accordingly, I look at an application from the point of view of a practitioner who is also in the trenches.

The purpose of a Fee Examiner is to assist the Court in the review and evaluation in its determination as to whether the services performed and the time detailed in an application were appropriate and met the requirements of the Bankruptcy Code, the Bankruptcy Rules and the Court's Local Rules, and for no other purpose. 

 

Some of the most significant matters that I consider in my review of an application are the following: 

  • How did the applicant attempt to resolve issues confronting its client. 
  • In reviewing the time spent on particular areas of client representation, does the time appear appropriate for the particular matter and for the desired results? 
  • Were the appropriate professional personnel utilized for a particular task, including areas of practice, years of experience and billing rates? (Could the work have been performed by a professional with a lower billing rate?) 
  • At the time the services when performed, was there a likelihood that the result would benefit the Debtor's estate? 
  • Were the services provided necessary for the administration of the Debtor's estate? 
  • Was there duplication of effort within a firm or between firms?  (Co-counsels, watch out.) 
  • Was the number of professionals attending a meeting, on a conference call or attending a Court hearing appropriate in the particular circumstance? 
  • Did the applicant provided services beyond the scope of its retention? 
  • Does the application comply with the Bankruptcy Code, Bankruptcy Rules, Local Rules and the U.S. Trustee's Guidelines?
Responding to the Draft Report 

After reviewing a fee application, a Fee Examiner will usually send a draft of his/her report to the applicant before the filing of a final report with the Court.

 

In my view, upon receiving a draft Fee Examiner report, you, the applicant should proceed as follows:  

  • Sit back and take a deep breath, then re-read the draft report and look at the report and its findings objectively. 
  • Look at your application objectively and through the eyes of the Examiner and gain an understanding as to the issues raised.  Do not get defensive. 
  • Go back in time and recollect what was going on in the case at the time the work was performed. 
  • Prepare a well thought out explanation to counter each proposed reduction. 
  • Contact the Fee Examiner and set up a time to have a conversation or face-to-face meeting when you will present your explanations.  This is a better than just responding in writing to the Fee Examiner's draft report. 
  • During that meeting or call, don't agitate the Fee Examiner as it does not help your cause. 
  • Try to resolve any and all issues (this may take more than one call or meeting) that are to be included in Fee Examiner's final report to the Court. 
  • During that meeting or call, look at the issue(s) from the point of view of the Fee Examiner and be prepared to compromise. 
  • Request that the Fee Examiner provide you with a draft of his/her final report before the submission to the Court. 
  • If not satisfied with the draft, contact the Fee Examiner and see if the issue(s) can be resolved. 
  • If the issues cannot be resolved and the report is filed with the Court, file a response and attend the fee hearing.
Keep in Mind...
  • Reductions proposed by the Fee Examiner are, at the end of the day, non-binding recommendations to the Court. 
  • There is no obligation for the Fee Examiner to beat-up an applicant and extract a pound of flesh. 
  • The Fee Examiner may be a practitioner that practices in the same arena that you do. 
  • The Fee Examiner does not have to justify his/her fees by reducing yours. 

I am available to respond to any of your questions or concerns. 

 

I hope to see you at the ABI Spring Conference. 

 

Jake Renick
 
MJ Renick & Associates, LLC  
51 Seacord Road  |  New Rochelle, NY 10804
914-813-0880

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