Bankr. D. New Mexico cuts bankruptcy fee award 74.7%, including for clerical work | LegalTime AI

Bankr. D. New Mexico cuts bankruptcy fee award 74.7%, including for clerical work

Valerie Yvette Martinez, No. 1:20-bk-12360. United States Bankruptcy Court, D. New Mexico, Judge Hon. David T. Thuma. Decided . Read the opinion

Requested
$2,950
Awarded
$747
Cut
74.7%$2,203

Bankruptcy · Fee applicant's counsel: New Mexico Financial and Family Law, P.C.

What happened

New Mexico Financial and Family Law, P.C., sought $2,950 in fees in the bankruptcy case of Valerie Yvette Martinez. The court awarded $747, a reduction of $2,203 or 74.7%. It disallowed $375 billed for clerical work as unnecessary, $600 billed to fix a mistake about Wells Fargo's small secured claim, $175 for attending the preliminary hearing or 341 meeting, $875 for proof of claim review, and $2,363 for sending and reviewing emails.

What the court said

Clerical work billed as legal work · $375
the following fees should be disallowed as unnecessary: $375 for clerical work

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

Why it matters

The ruling shows that courts will separate clerical tasks from legal work and will reduce entries for routine or excessive tasks even when the total request is modest. Time records that do not distinguish clerical from legal work, or that bill heavily for email and review, can draw itemized cuts.

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

Valerie Yvette Martinez, No. 1:20-bk-12360 (Bankr. D.N.M. Mar. 11, 2024)

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.

More rulings like this

All rulings in the Fee Cut Tracker