Monday, July 7, 2014

Hawaii is a beautiful state...but one Debtor's firm was denied their fees....Aloha! (2014 - unpublished Hawaii)

One must wonder if the law firm representing this debtor was surfing, enjoying a sunset or perhaps just attending a luau.  In any case, the firm's fees were are some of the errors made by the law firm:

1)  Failed to disclose a payment of $8,000.00 pre-petition by the Debtor
2) Failed to disclose a $4,000.00 post-petition payment by the Debtor (which they returned to the Debtor after it was "brought" to their attention.
3) Put a Debtor in a Chapter 13, but the Debtor did not qualify for the 13
4) Failed to appear for hearings but rather hired a "contract" attorney to appear but never disclosed the compensation to the contract attorney
5) Failed to affiliate with a competent Chapter 11 attorney

For those who remember Judge Markell and his epic opinions, the Court cited to In re Spickelmeir which stood in part for the proposition that requested compensation may be reduced if the court finds that the work done was excessive or of a poor quality...

The end result fees.

In re Wegesend, 2014 Bankr. LEXIS 2902 United States Bankruptcy Court for the District of Hawaii

July 3, 2014, Decided
CASE NO. 13-01686, (Chapter 11)

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