Bankr. E.D. California cuts bankruptcy fee award 20% over missing contemporaneous records

What happened

The fee applicant sought $59,475 in fees under a contract fee clause, based on 117 hours. The United States Bankruptcy Court for the Eastern District of California, Judge Christopher M. Klein, awarded $47,580, a reduction of $11,895 or 20%. The court applied a single 20% downward adjustment to the total fee because the documentation was deficient: the records were not contemporaneous and bore signs of reconstruction by counsel who does not routinely bill consumer clients by the hour, and they included approximations.

What the court said

the deficient documentation warrants the exercise of discretion to make a downward adjustment in the fee request of twenty percent

They bear some evidence of having been reconstructed by counsel who does not routinely bill consumer clients by the hour and include some approximations.

Why it matters

The ruling shows that a bankruptcy court will reduce a contract-based fee award when time records are not kept contemporaneously and appear reconstructed, even without a separate line-by-line cut. It signals that the quality of the underlying time documentation itself can support a percentage reduction of the total request.

How to keep this out of your fee petition

• Record time the same day the work happens.
• Keep the original records, not only a cleaned-up summary.
• Be able to show when each entry was created.

Cite this ruling

Figures and quotes are taken from the opinion and checked against its text. Spot an error? Email team@legaltime.ai with the case name and we will correct it. Summaries of public court opinions. Not legal advice.