Bankr. D. New Mexico cuts bankruptcy fee award 45.7%, including for clerical work

What happened

Counsel for the debtors, New Mexico Financial and Family Law, P.C., requested $11,020 in fees for 36.5 hours. The court awarded $5,980, a reduction of $5,040 or 45.7%, and 27.1 hours. The court reduced the attorney hourly rate, found some charged time excessive, and disallowed 0.7 hours for drafting a second amended plan that was not filed and did not benefit the estate or the debtor. It also disallowed 0.7 hours for coordinating calls or meetings, which it treated as noncompensable clerical tasks.

What the court said

Second, Counsel billed 0.7 hours trying to coordinate calls or meetings. Such clerical tasks are not compensable and therefore considered unnecessary.

The court also reduced the award for: hourly rate reduced, excessive hours, other.

Why it matters

The ruling shows that courts will separate clerical tasks from legal work and disallow time spent on unfiled documents that did not benefit the estate. It also shows that a fee award can be reduced on several grounds at once, including the hourly rate and excessive hours, not only on how time entries are recorded.

How to keep this out of your fee petition

• Leave purely clerical work off the fee petition.
• Describe paralegal tasks so the substantive work is clear.
• Split mixed entries into their substantive and clerical parts.

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.