Bankr. N.D. New York cuts bankruptcy fee award 51.3%, including for vague entries

What happened

McManimon Scotland & Baumann, LLC requested $65,513 in fees for 150.3 hours in the Barbara Falatico-Brodock bankruptcy. The court awarded $31,925.70, a reduction of $33,587.30 or 51.3%. It reduced or denied time for excessive hours on tasks such as drafting a letter to a state court, preparing schedules, and reviewing pleadings; for duplicative staffing at hearings; for entries that did not benefit the estate; and for vague entries. It also reduced the total fee by 5% for vagueness and 5% for block billing.

What the court said

On May 15, 2024 MSB communicated with the Debtor regarding her “Florida Home.” This is denied as vague.

These entries are vague. The Court cannot discern how these activities benefitted the estate. Therefore, they are not reasonable or necessary and will not be allowed.

Based upon this Court’s discretion, the Fee App will be reduced by 5% for vagueness.

As with the vague entries, this Court reduces the total fee awarded by 5%.

The court also reduced the award for: excessive hours, duplicative staffing, excessive hours, other, other, excessive hours, excessive hours, excessive hours, excessive hours, duplicative staffing, excessive hours, other, other, other, duplicative staffing, excessive hours.

Why it matters

The ruling shows that courts will reduce fee awards when time entries lack specificity or combine tasks, and when staffing or hours appear excessive. It also shows that entries the court cannot tie to a benefit to the estate may be denied entirely.

How to keep this out of your fee petition

• Name the task, the document or person involved, and the purpose.
• Avoid stock phrases that could describe any day in any matter.
• Keep privileged detail general, but specific enough to show the work.

Cite this ruling

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