Local Rule LBR 2016-1: Compensation of Professionals

LBR 2016-1 Compensation of Professionals

(a) Scope of Rule. This rule applies to all applications for compensation filed by any professional person including, but not limited to, attorneys, accountants, appraisers, financial consultants and brokers.

(b) Chapter 13 No-Look Fee.

(1) If the total fee for the debtor's attorney in a case under chapter 13 is less than or equal to $5,500, it is unnecessary for such attorney to file an application for compensation. If any debtor's attorney proposes to charge more than $5,500 or seeks more than $5,500 in compensation, an application for compensation must be filed.

(2) If the prepetition retainer is $5,500 or less, the chapter 13 plan may provide that the difference between the prepetition retainer and $5,500 be paid during the first twelve (12) months of the chapter 13 plan as an administrative expense.

(c) Retainers. All retainers must be held in a segregated account or attorney's client trust account if the retainer is received by a professional person whose retention is subject to approval by the court. No portion of the retainer held pursuant to this rule shall be withdrawn except upon an order by the court.

(d) Preparation of Application. All professionals whose compensation is subject to approval by the court must file an application for compensation. It is the responsibility of a trustee or debtor in possession to prepare and file the application for compensation and expenses of a non-attorney professional employed by the trustee or the debtor in possession.

(e) Application Form. All applications for compensation shall:

(1) Include Annex 1 — Request for Final Allowance of Compensation and Expenses (see LBF 2016-1A) or Annex 2 — Request for Interim Allowance of Compensation and Expenses (see LBF 2016-1B) giving a recap of pertinent data.

(2) In addition to the requirements set forth in the Bankruptcy Code and Bankruptcy Rule 2016(a), the application shall contain the following information:

(A) The date of the order approving employment or appointment.

(B) In concise form, a general narrative statement of the nature of the services provided, including the results obtained, total amount of compensation sought and any other matters that will assist the court in determining the reasonable value of such services.

(C) Time sheets based upon records prepared contemporaneously with the services rendered setting forth:

(i) The dates the services were rendered.

(ii) A description of services in sufficient detail to enable the court to find that such services were actual and necessary.

(iii) The total billable hours spent rendering such services and the total billable hours expended in rendering such services broken down among timekeepers in tenth of an hour increments and separated by each task (i.e., no "block billing" or "lumping").

(iv) The identity of the person or persons rendering such services.

(v) The billing rate for each person providing services.

(vi) The total compensation sought by each person providing the services.

(vii) Any maximum compensation fixed in the order of appointment.

(D) In a chapter 11 case, the debtor (or any chapter 11 trustee) shall prepare, file and serve a form of notice summarizing all pending applications for compensation to be used in giving notice of any hearing on fee and expense requests before the same may be heard and acted upon. The notice shall be a single notice covering all pending fee applications and shall include a cumulative total of all interim compensation allowances and expense reimbursements in the case prior to the pending applications.

(f) Expenses. Every application for compensation shall state with specificity all disbursements for which reimbursement is sought. Applications may only seek reimbursement for actual and necessary expenses. Absent extraordinary circumstances, the court will not approve any reimbursement for meals, administrative charges or overtime charges.