Local Rule Rule 2016-1: Compensation for Services Rendered & Reimbursement of Expenses. — Bankr. D. Or.

Rule 2016-1. Compensation for Services Rendered & Reimbursement of Expenses.

(a) General.

(1) Nonprofessional Administrative Expenses. If a trustee fails to promptly pay an administrative expense, the claimant may request reimbursement of the expense by filing a proof of administrative expense. LBF B10A is an optional form of proof of administrative expense. An administrative expense, proof of which is filed, is deemed allowed, unless a party in interest objects. A claimant may move the court for an order allowing immediate payment of the administrative expense. The motion must have a copy of the proof of claim attached and be served on the debtor and any creditors' committee.

(2) Custodian. A custodian superseded under § 543, or an attorney or an accountant for the custodian, may request payment of compensation or reimbursement of expenses using a proof of claim under (1). A custodian not superseded under § 543, or an attorney or accountant for the custodian, may request compensation or reimbursement of expenses by application made in the manner required in this LBR for an applicant filing under the applicable chapter.

(b) Compensation and Reimbursement Amounts for Entities Other Than Chapter 7, 12, or 13 Trustees.

(1) Minimum Billing Time Increment. A billing time increment should not exceed .1 hour (six minutes), and any time spent working on multiple matters concurrently must be allocated between those matters so total billings do not exceed the actual time spent. The application must include a separate statement explaining any minimum time increment exceeding .1 hour.

(2) Reasonableness of Billing Amounts. If a billed expense or compensation sought for travel time does not exceed the limits below, there is a rebuttable presumption that the billing is reasonable and no evidence will be required unless a party files a timely objection to the billing. If a billing amount exceeds a limit below in any respect, then the application must include a separate statement explaining the method by which any amount in excess of the limit was determined, and the applicant must submit evidence that the amount sought is reasonable. An application or claim that seeks billing amounts within the scope of this LBR must expressly identify any billing amount that exceeds the following limits:

(A) Photocopies. $0.15 per page for photocopies by the applicant's firm. Commercial concerns should be used at actual cost for a large project.

(B) Long-Distance Telephone or Mail. Actual cost of long-distance telephone or mail. The applicant must be prepared to demonstrate the necessity of using a delivery method involving charges exceeding the cost of first-class postage.

(i) Travel Time Compensation.

(I) If the applicant worked on the case or adversary proceeding while traveling, the full hourly rate will be allowed.

(II) If the applicant worked for another client while traveling, nothing will be allowed.

(III) If the applicant did not work on client matters while traveling, travel time will be allowed at one-half of the applicant's hourly rate. If a professional wants a court determination that travel time should be authorized at more than one-half the professional's hourly rate, the court will consider and rule on the application.

(ii) Mileage. Automobile mileage not to exceed the allowed rate for federal tax deductions.

(iii) Air Fare. Air fare not to exceed coach price. The applicant must be prepared to demonstrate the economic benefit of flying rather than using alternative transportation.

(iv) Hotels, Meals, Per Diem, and Miscellaneous Charges. Actual cost of hotels and meals, with a maximum of two times the government per diem rate. The government per diem rate charts are available at www.gsa.gov.

(D) Secretarial, Clerical, Word Processing, and Other Staff Charges. Secretarial, clerical, word processing, and other staff charges are part of overhead, and not reimbursable unless the applicant demonstrates extraordinary circumstances. If reimbursable, services are reimbursed at the applicant's cost of employing the individual performing the services billed (i.e., salary plus benefits), but not any additional amount for overhead.

(E) Outgoing Fax. Actual telephone charge, or actual cost for outside services.

(F) Computerized Legal Research. Actual (i.e., invoiced) cost. The applicant must specifically identify time associated with computerized research on the applicant's time detail.

(G) PACER. Actual cost billed by PACER Service Center.

(H) Messengers. Deliveries by the applicant's employees are part of overhead and not reimbursable. Actual cost for outside messenger services. The applicant must be prepared to demonstrate necessity.

(I) Other. Other expenses, including services provided by third parties, at the actual cost paid to the third party.

(3) Paralegal/Legal Assistant. Hourly rate for performing paralegal or legal assistant work.

(4) Local Counsel. If competent local counsel (i.e., an attorney where court hearings will regularly be scheduled in the case or adversary proceeding) is available, the court will allow compensation and expenses to nonlocal counsel in an amount not to exceed the total that would have been charged by competent local counsel. If an attorney wants a court determination before undertaking employment that competent local counsel is not available, the court will consider and rule on an application before employment is actually undertaken.

(5) Revision of Certain Dollar Amounts. In each year in which dollar amounts change under § 104, the amounts listed in LBF 1305 for Schedule 1 (life-of-the-case fixed fee) and Schedule 2.(a) (fixed fee through confirmation and initial audit of claims) will be adjusted to reflect the same percentage change, rounded to the nearest $25. The adjustments will apply only to cases filed on or after the December 1 adjustment date.

(1) Interim Application.

(A) General. An application for interim compensation must be preceded by the filing of an interim report prepared by the trustee on either LBF 753 (for chapter 7) or LBF 1153 (for chapter 11). The applicant may contemporaneously file a motion (including a certificate of service on the trustee), and a proposed order, requiring an interim report be filed within 30 days.

(B) Form. An application will be considered a final application unless the LBF title is marked as "INTERIM." An interim applicant who is not an accountant must use LBF 345. An accountant must use LBF 345.7.

(C) Filing. An application for interim compensation or expense reimbursement must be filed in the case, and not as a proof of claim.

(D) Notice of Intent to Compensate Professional.

(i) Before an interim application will be considered by the court, a notice must be filed on LBF 753.40 unless the application is submitted by either:

(I) A chapter 7 trustee, who must file on any LBF created solely for the trustee's use (e.g., 753.50 (auctioneer), 753.55 (liquidator), 753.58 (collection agency), 753.60 (real estate broker), or 753.80 (appraiser)).

(II) A chapter 11 real estate broker or auctioneer.

(ii) Except for a chapter 7 trustee, an applicant preparing a notice is generally responsible for noticing the referenced application. Notices of multiple applications in a given case may be consolidated. An applicant who prepares and serves a notice on behalf of other applicants must notify the other applicants, and those other applicants must not also serve a notice. The cost of service must be borne by each applicant whose application is described in any notice in proportion to the total compensation or expense reimbursement requested.

(2) Final Application.

(A) General. A final application for compensation or reimbursement of expenses must be filed as a proof of claim. An applicant must file a final application even if an interim application by the applicant is pending, or the court has awarded interim compensation that remains unpaid. An attorney's disclosure statement filed under FRBP 2016(b) is not an application. The requirements of (b) apply to the reimbursement of expenses or travel time.

(B) Form.

(i) Attorney/Accountant. An attorney must file on LBF 345. An accountant must file on LBF 345.7.

(ii) Other Professional. LBF 345 must be used unless the professional is:

(I) Employed under LBF 753.50 (auctioneer), 753.55 (liquidator), 753.58 (collection agency), 753.60 (broker), or 753.80 (appraiser).

(II) A chapter 11 real estate broker or auctioneer.

(i) Chapter 7. Unless the case has been converted, an application for compensation earned or expense reimbursement must be filed by the date the trustee's final report is filed. It is the applicant's duty to keep apprised of that filing date.

(ii) Chapter 11. Unless the case has been converted or the plan provides otherwise, an application for compensation earned or expense reimbursement at least through plan confirmation must be filed no later than 28 days after entry of the confirmation order.

(D) Untimely Filing. The court may consider an untimely application if it is filed by the deadline in § 726(a)(1), or in chapter 11. The applicant must file and serve any notice required by FRBP 2002(a)(6) under LBR 2002-1(b), and either:

(i) When No Notice Required. Lodge a proposed order when filing the application, and clearly state in the title that no notice is required by FRBP 2002(a)(6).

(ii) When Notice Required and No Objection Filed. No later than 28 days after the service, lodge a proposed order that includes a certification that no objection was timely filed.

(E) Order in Chapter 11. Promptly after expiration of the notice period with respect to LBF 1190, the proponent of the confirmed plan must lodge an order awarding final compensation and reimbursement to professionals on LBF 1193, and include in that LBF all professional fee or expense reimbursement applications noticed on LBF 1190 for which no objection was timely filed.

(d) Chapter 12.

(1) Attorney. An application for initial or supplemental compensation or expense reimbursement must be filed on LBF 1214 no later than 28 days after service of the trustee's notice of plan completion. The applicant must file and serve notice of the application on LBF 1214.5.

(2) Accountant. An accountant's application for compensation or expense reimbursement must be filed on LBF 345.7.

(e) Chapter 13 Debtor's Attorney.

(1) Chapter 13 Debtor's Attorney's Compensation Disclosure and Application on LBF 1305.

(A) An attorney representing a chapter 13 debtor in or in connection with the chapter 13 case must file an LBF 1305 no later than 14 days after the later of the petition date or the date the attorney first provides services—unless the attorney is not required by § 329(a) to make a disclosure or by FRBP 2016(b) to make a statement.

(B) An attorney whose LBF 1305 is due more than seven days before the final confirmation hearing must file any required amended LBF 1305 no later than seven days before the final plan-confirmation hearing.

(2) Chapter 13 Debtor's Attorney's Schedule 2.(b) Itemization on LBF 1306.

(A) If the attorney selects LBF 1305 Schedule 2.(b) and (i) the LBF 1305 estimate, before credit for payments, exceeds $4,250 or (ii) the actual value of services rendered and reimbursable expenses incurred by the attorney through 14 days before the final confirmation hearing exceeds $4,250, the attorney must complete and file a Chapter 13 Debtor's Attorney's Schedule 2.(b) Itemization on LBF 1306 no later than seven days before the final confirmation hearing. Any Chapter 13 Debtor's Attorney's Supplemental-Compensation Application on LBF 1307 by an attorney who has not timely filed an LBF 1306 may not include any amount by which the total amount of fees and expenses incurred through 14 days before the final confirmation hearing exceeds the amount of compensation and expense reimbursement allowed in the confirmation order.

(B) Plan confirmation after the filing of an LBF 1306 does not constitute allowance of fees and expenses exceeding the amounts allowed in the confirmation order. Allowance of any excess will be considered in connection with the first LBF 1307.

(3) Chapter 13 Debtor's Supplemental-Compensation Application on LBF 1307.

(A) No LBF 1307 may be filed (i) if Schedule 1 was selected on LBF 1305, (ii) to request fees and expenses less than $500 on a nonfinal LBF 1307, (iii) sooner than six months after the last to be filed of the LBF 1305 and any prior LBF 1307, (iv) after filing a final LBF 1307, or (v) after 28 days after service of the trustee's notice of plan completion.

(B) If Schedule 2.(b) was selected—and even if an LBF 1306 was filed—the first LBF 1307 must include an itemized statement of all services rendered and expenses incurred in contemplation of or in connection with the case, both before and after the petition date, and it must reflect the paid amounts listed in the LBF 1305 and amounts allowed in the confirmation order.

(D) If allowance of the compensation requested in an LBF 1307 will require a plan modification, the debtor must, within 28 days after allowance of this LBF 1307, file either a Notice of Postconfirmation Amendment of Plan on LBF 1355.10 and a proposed amended plan on the appropriate LBF or a statement why none has been filed.

(f) Converted Case. An application for compensation earned or for reimbursement of expenses incurred before a case was converted must be filed on LBF 345, and as a proof of claim. An application for compensation earned or for reimbursement of expenses incurred while a case was being administered in more than one chapter must separate the required information into a separate section for each chapter.

(g) Adversary Proceedings. The deadlines under LBRs 9021-1(d)(2) and (3) for filing, or objecting to, a cost bill also apply to filing, and objecting to, a request for attorney fees in an adversary proceeding when the prevailing party seeks judgment for its attorney fees.

(h) Secured Creditor Expenses. In this subdivision the term "expense" includes the costs of insurance, taxes paid, attorney fees, appraisal fees, and inspection fees.

(1) Chapter 7 or 11.

(A) General.

(i) Proof of Claim Required. A secured creditor seeking reimbursement or payment of prepetition expenses must apply using a proof of claim. A secured creditor seeking reimbursement or payment of postpetition and preconfirmation expenses must apply using a proof of claim filed by the deadline in (c)(2)(C).

(ii) Declaration of Professional. A proof of claim filed for postpetition expenses that includes a claim for compensation of professional services must also include a declaration from the professional that contains the following five points of information and representations:

(I) The declarant requests allowance of compensation for professional services of $_____ and expenses of $_____ for a total of $_____. Expenses claimed were actually charged to the declarant.

(II) [Rate based on hourly charge] The rate of compensation, number of hours, and requested fee for each person included in this application are summarized as follows:

Timekeeper Hourly Number Requested (names and initials) Title Rate Of Hours Fee [Rate not based on hourly charge] The fees for services were calculated as follows: [Describe]. Services were provided by the following: [Identify by name].

(III) The declarant has not shared or agreed to share any compensation received or to be received for services rendered in connection with this case except with a regular member, partner, or associate of declarant's firm.

(IV) A description of the timekeeper's services and expenses is included and incorporated into the declaration.

(V) The declarant requests: a. A total of $_____ for expenses that fall within the limits of LBR 2016-1(b) (no itemization required); b. Other [describe each in detail]:

(B) Expenses Arising After Initial Proof of Claim. A secured creditor may include estimated future expenses, marked as such, in a proof of claim. In addition, a creditor seeking postpetition expenses may file an amended claim, with notice to be given under (C).

(i) General. A creditor must contemporaneously give notice under LBR 2002-1(b) of its intent to be paid by the estate unless notice is not required under (ii). If notice is not required, the creditor must clearly state that fact, and the applicable exception, in the first page immediately after the proof of claim form.

(ii) Exceptions. A secured creditor filing a proof of claim that includes a request for compensation or reimbursement of expenses must give notice of the claim to all parties entitled to notice under FRBP 2002(a), except as follows:

(I) If the request does not exceed the noticing threshold in FRBP 2002(a)(6).

(II) If a secured creditor seeks payment of expenses from the proceeds of sale of collateral, and the creditor informs the trustee of the amount of the requested expenses no later than three business days after being notified in writing by the trustee of the proposed sale, the trustee must include notice of the claimed expenses in the notice of proposed sale. The creditor must also file or amend a proof of claim for those expenses no later than 14 days before the deadline for timely objection to the sale.

(III) In a chapter 11 case, if the creditor files the proof of claim no later than 28 days after entry of the plan confirmation order, then the plan proponent must serve the claim or notice of the claim with the notice of confirmation on LBF 1190.

(iii) Notice Expenses. If a creditor has had the opportunity to have notice of its claim served as part of a notice of proposed sale or plan confirmation, but does not do so, the creditor must serve notice of the claim at the creditor's expense and without increasing its claim.

(D) Holdback for Expenses If Order Not Entered, but Sale Can Close. If the court has not entered an order regarding an expense claim when the collateral sale closes, the trustee must, until the court enters an order regarding the expense claim, retain in trust for the secured creditor 150% of the amount the creditor sought for expenses, which amount will be impressed with the creditor's security interest or lien.

(2) Chapter 12 or 13.

(A) Inclusion of Expenses in Proof of Claim. A secured creditor who requests payment of expenses by the trustee must also:

(i) General. Include representations that: (I) the expenses were actually charged to the claimant, (II) none of the parties for whom expenses are claimed has shared or agreed to share any compensation received or to be received for services rendered in connection with this case, except with a regular member, partner, or associate of the claimant's firm, and (III) claimant has no ownership interest in any of the entities providing services for which reimbursement is sought.

(ii) Prepetition Expenses. Include and identify the expenses.

(iii) Postpetition and Preconfirmation. Except for expenses incurred in connection with a claim described in FRBP 3002.1(a), either: (I) include postpetition, but preconfirmation, expenses in an initial or amended proof of claim, or (II) no later than 30 days after entry of the confirmation order, file an initial or amended proof of claim. The part of the claim attributable to postpetition and preconfirmation expenses must be clearly identified. If the creditor incurs the requested expense in connection with a claim described in FRBP 3002.1(a), the creditor must comply with FRBP 3002.1.

(iv) Postconfirmation. Except for expenses incurred in connection with a claim described in FRBP 3002.1(a), no later than the 90th day before the debtor is scheduled to make the final plan payment, file an initial or amended proof of claim that clearly identifies the requested expenses incurred after plan confirmation. If the creditor incurs the requested expense in connection with a claim described in FRBP 3002.1(a), the creditor must comply with FRBP 3002.1.

(B) Disclosure of Preservation of Expense Claim After Discharge. Except for expenses incurred in connection with a claim described in FRBP 3002.1(a), a creditor that asserts a right to expenses as part of its secured claim, but does not request payment of those expenses by the trustee, must disclose its claimed entitlement to payment of the expenses either by filing and serving on the debtor a notice of the expense claim, or by including the expense claim in the creditor's proof of claim. A secured creditor may elect to include some expenses in its proof of claim, and other expenses in a notice. If the creditor incurs the requested expense in connection with a claim described in FRBP 3002.1(a), the creditor must comply with FRBP 3002.1.

(i) Information Required in a Notice. A notice provided pursuant to (B) must: (I) state that the creditor asserts the right to expenses as part of its secured claim and does not request payment by the trustee, and (II) set forth the amount of the claim for expenses to the extent known at the time the notice is filed and any interest rate charged on accrued expenses.

(ii) Deadline to Give Notice. A creditor that asserts a claim for prepetition expenses must give notice of its claim by the deadline for that creditor to file a proof of claim. Except for expenses incurred in connection with a claim described in FRBP 3002.1(a), a creditor that asserts a claim for postpetition expenses must make its disclosure no later than the 90th day before the debtor is scheduled to make the final plan payment. If the creditor incurs the postpetition expense in connection with a claim described in FRBP 3002.1(a), the creditor must also comply with FRBP 3002.1.

(C) Itemization of Expenses. No later than 28 days after service of a request, a secured creditor must give a written itemization of the expenses not set forth in a proof of claim.

(D) Deadline for Objection to Claim for Expenses. Except for expenses incurred in connection with a claim described in FRBP 3002.1(a), an objection to a secured creditor's expenses must be filed no later than 60 days before the final plan payment is due under the plan. If the creditor incurs the requested expense in connection with a claim described in FRBP 3002.1(a), an objection to the expenses must be filed within the time limits provided by FRBP 3002.1.

(i) Trustee Expenses.

(1) Payment of Certain Expenses Up to $1,000. A trustee may pay from estate funds, or reimburse the trustee from estate funds, up to $1,000 in the aggregate after expiration without objection of the objection period set forth in a served OFT, Order and Notice of Time to File Claims and Notice of Trustee's Intent to Incur and Pay Certain Expenses, for the following actual and necessary expenses to preserve or protect the estate: bond premiums, bank fees, court fees, UCC search fees, property title search fees, and locksmith or security charges.

(2) Payment of Other Expenses. To request authority to use estate funds to pay administrative expenses that either (i) exceed $1,000 in the aggregate or (ii) are not listed as expenses under (1) above, the trustee must file a motion on LBF 759.5.

Cross-references: • Chapter 12 or 13—Amended Proof of Claim – LBR 3001-1(c)(1). • Chapter 11—Confirmation; Report of Administrative Expenses – LBR 3020-1. • Service Costs—Reimbursement – LBR 2002-1(e).

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