|
IN THE UNITED STATES BANKRUPTCY COURT GUIDELINES FOR COMPENSATION AND EXPENSE The following Guidelines, dated March 16, 1995, govern applications for compensation and expense reimbursement submitted to Judge Gerardo Carlo. Except as otherwise provided, the Guidelines apply to professionals, generally including lawyers, accountants, appraisers, auctioneers, financial advisors and consultants unless, for cause shown, modifications are made at the time a professional is employed. COMPENSATION 1. Application for Employment: All professional persons must obtain court authorization in order to be compensated for their services. The application for employment must comply with Fed. R. Bankr. P. 2014 and Local Bankr. R. 2014. If a retainer was paid, the application shall state the amount, source, date and nature of the retainer. 2. Application for Compensation: 3. Administrative Tasks: Time spent in addressing, stamping, and stuffing envelopes, filing, photocopying or "supervising" any of the foregoing is not compensable, whether performed by a professional, paraprofessional or secretary. 4. Clerical Services: The court may disallow compensation for clerical services, such as "reviewed files," "organized materials for oral arguments," and "reviewed file at clerk's office." It will be necessary for the professional to show that such services are not merely clerical services performed as pan of the overhead of the law firm. The court may disallow compensation for clerical services whether performed by a secretary, paralegal, or attorney. 5. Trustee Work: An attorney is never entitled to professional compensation for performing duties which the Bankruptcy Code imposes on trustees. It is the applicant's burden to show that the work was required legal work and not trustee work. 6. Project Billing: Each application shall categorize the services rendered into separate projects or tasks. Miscellaneous items may be included in a category such as "Case Administration." The professional may use reasonable discretion in defining projects for this purpose, provided that the application provides meaningful guidance to the Court as to the complexity and difficulty of the task, significant problems encountered, results achieved. With respect to each project or task, the number of hours spent and the amount of compensation and expenses requested should be set forth at the conclusion of the discussion of that project or task. 7. Descriptions: At a minimum, the time entries should identify the person performing the services, the date performed, what was done, and the subject involved. Mere notations of "telephone calls," "conferences," "research," "drafting," etc., without identifying the matter involved, will result in disallowance of the time covered by the entries. 8. Lumping: If a number of separate tasks are performed on a single day, the fee application should disclose the time spent for each such task (i.e., no "grouping" or "clumping."). 9. Time Records Required: AH professionals, except auctioneers, real estate brokers, appraisers and those employed on a contingency fee basis, must keep accurate contemporaneous time records. The Court may, however, specifically direct that time records be kept on a contingent fee matter. 10. Billing Increments: Professionals are required to keep time records in minimum increments no greater than 6 minutes. Professionals who utilize a minimum billing increment greater than .1 hour are subject to a substantial reduction in their fee requests. 11. Staffing; Rates: Rates charged must be commensurate with the skill required for the task. For example, partner rates are not allowable for routine work. 12. Billing Summary: Hours and total compensation requested in each application should be aggregated and itemized as to each professional and paraprofessional who provided compensable services. 13. Intra-Office Conferences: Professionals shall indicate in the application time spent in conferences with other professionals or paraprofessionals in the same firm. Failure to justify this time may result in disallowance of all fees related to such conferences. 14. Interoffice Conferences: The Court will allow only one professional charge for services rendered when more than one person from the same firm attends an interoffice meeting unless the attendance of more than one professional at the meeting is justified by an explanation in the application. Failure to justify the need for more than one professional or paraprofessional at the same meeting or court hearing may result in compensation for only the person with the lowest billing rate. 15. Travel Time: The court will allow professional travel time at one-half the professional's normal hourly rate unless otherwise justified. This is because the time spent traveling generally is unproductive or, if productive, rarely is spent solely on the case for which the professional is traveling. Automobile travel will only be compensated at one-half the professional's normal hourly rate. Travel of one hour or less round- trip is not compensable. 16. Preparation of Application: Reasonable fees for the actual time spent in the preparation of a fee application may be requested. 17. Certification: Each application shall contain a certification by the responsible professional that (a) the professional has read the application, (b) to the best of the professional's knowledge, information, and belief formed after reasonable inquiry, the compensation and expense reimbursement sought conforms with these Guidelines, (c) the compensation and expense reimbursement requested are billed at rates and in accordance with practices no less favorable to the debtor/estate than those customarily employed by applicant generally. EXPENSES 18. Office Overhead: Office overhead is generally not reimbursable. Overhead includes secretarial time or overtime, word processing time and the cost of meals or transportation provided to professionals and staff who work late or on weekends. 19. Photocopying Expense: An applicant has the burden of establishing that its expenses are both actual and necessary. Therefore it must identify the particular documents copied, the number of copies and the actual cost per copy not to exceed 25 cents per page. 20. Computerized Research: Computerized research is reimbursable at actual cost, without markup or enhancement for handling or administrative charges. 21. Messenger Service: Reimbursement for messenger service or overnight delivery service will be allowed at actual cost, if reasonably incurred. Messenger service or overnight delivery service should be used only when first-class mail is impractical. In-house messenger service is not reimbursable for more than the cost of comparable services outside the firm. 22. Postage: Postage is reimbursable at actual cost. 23. Long Distance Telephone: Reimbursable at actual cost. 24. Facsimile Transmission: Actual cost of telephone charges for outgoing transmissions are reimbursable. Transmissions received are reimbursable at actual cost not to exceed 25 cents per page. Reimbursement for Facsimile Transmissions are reimbursable only if reasonably incurred. Facsimile Transmissions should only be used when first-class mail is impractical. 25. Travel - Air Transportation.- Reimbursement is limited to amount spent or regular coach fare, whichever is lower. 26. Travel Accommodations and Meals: Reimbursement is allowed for reasonable hotel and meal expense. Luxury dining or accommodations are not reimbursable. 27. Meals - Working: Working meals at restaurants or private clubs are generally not reimbursable. Reimbursement may be requested for working meals only when food is catered to the professional's office during a meeting with clients, such as a creditors' committee, to permit the meeting to continue through a normal meal period. 28. Amenities: Charges for entertainment, alcoholic beverages, tobacco, newspapers, dry cleaning, shoe shines, etc., are generally not reimbursable. 29. Miscellaneous: Filing fees, court reporter fees, witness fees, and fees for process service are reimbursable at actual cost.
|
[General and Administrative Orders]
Menu | General Information | Bankruptcy Case Information | Chambers | FAQ | E-Mail