Bankr. S.D. Texas cuts bankruptcy fee award 35%, including for missing records

What happened

The fee applicant in an adversary proceeding before Judge Marvin Isgur requested $24,000 for 60 hours. The court awarded $15,600, a reduction of $8,400 or 35%. The court cited the absence of contemporaneous time records, saying that without them it was extremely difficult to assess whether the hours were reasonable and necessary and to separate time spent on the adversary proceeding from the applicant's main bankruptcy case.

What the court said

However, Mr. Milledge's lack of contemporaneous time records gives the Court pause.

The court also reduced the award for: other.

Why it matters

The ruling shows that a fee applicant's inability to produce contemporaneous time records can support a percentage cut of the total fee, particularly where the court must also separate work on related matters. It confirms that courts will reduce awards when the record does not allow them to test the reasonableness of the hours claimed.

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.