Local Rule Rule 2016-1: Compensation of Professionals

Rule 2016-1. Compensation of Professionals

(a) Application for Compensation of Professionals, Including Chapter 7 and Chapter 11 Trustees.

(1) Scope. This Local Rule applies to all applications for compensation filed by any professional, including, but not limited to attorneys, accountants, appraisers, financial consultants and brokers. Designated portions of it also apply to applications for compensation filed by chapter 7 and chapter 11 trustees.

(2) Detailed Statement and Other Required Disclosures.

(A) Time and Task Records. The detailed statement required by Fed. R. Bankr. P. 2016(a) shall, at minimum, set forth a description of each task performed or service rendered, the date of performance or service, the identity of the individual performing each task or providing each service, and the time (in tenth of an hour increments) expended on each task or service. Abbreviations and initials may be used but shall be accompanied by explanations and references sufficient to make the itemization comprehensible.

(B) Prior Applications, Orders, and Payments. The detailed statement shall include the amounts awarded and the periods covered by each prior application.

(C) Related Cases and Proration. If the applicant provided services in a related case or cases during the period covered by the application, and prorated time or charges between or among such cases, the detailed statement shall clearly disclose and explain the basis for such proration.

(D) Identity of Professionals and Paraprofessionals. The application shall include a columnar listing of all professionals and paraprofessionals for whose work compensation is sought, the hourly rate or rates charged for each such person, a key to the initials or other device used to identify each such person in itemized billings, and the total hours charged and fees sought for each such person during the period covered by the application. For any person whose rates have changed during the period covered by the application, that person's name shall be separately listed and hours totaled at each rate.

(E) Professional Biography. Applications shall include a brief statement of professional training or experience for each professional whose work has been charged. Biographies already provided need not be included in subsequent applications. The statement should demonstrate that the hourly rate charged for each professional is reasonable.

(3) Trustee Compensation.

(A) Additional Disclosures—Service as Trustee's Counsel. In any case in which the case trustee is retained as counsel, an application for compensation, either as trustee or as counsel, shall include a disclosure that the trustee provides services in both capacities, an express allocation of services as trustee or as counsel, and a statement of compensation received and applied for in both capacities.

(B) Additional Itemization—Large Cases. If compensation and reimbursement by a trustee in a chapter 7, 11, or 12 case exceeds $3,000.00, the trustee shall state:

i. the total funds received in the estate;

ii. the amount of funds disbursed and anticipated to be disbursed by the trustee to interested parties (excluding the debtor) and a calculation of the maximum fee allowable under § 326 of the Code; and iii. a brief narrative description of services and activities as trustee.

(C) Service in More Than One Chapter. If a trustee has served as both chapter 7 and chapter 11 trustee in a case, the trustee shall separately itemize services provided under each chapter.

(D) Certification of Maximum Commission. Each application for trustee compensation shall include a certification that the amount of compensation sought does not exceed the maximum statutory commission.

(4) Reimbursement of Expenses. Every application for professional compensation shall set forth with specificity each disbursement for which reimbursement is sought.

(b) Service of Disclosure of Compensation and Detailed Statements. Disclosures of compensation and detailed statements required by Fed. R. Bankr. P. 2016 and subparagraph (a)(2) of this Local Rule shall, at the time of filing, be served on the United States trustee, and on any trustee and official committees serving in the case.

(c) Retainers. No funds held to secure payment for services rendered after the petition date by a professional retained, or to be retained, under Fed. R. Bankr. P. 2014 and Local Rule 2014-1 may be withdrawn after the commencement of the case until such time as an order for distribution is entered.