Local Rule LBR 2016-2: Fee Applications Filed Pursuant to Fed. R. Bankr. P. 2016

LBR 2016-2: Fee Applications Filed Pursuant to Fed. R. Bankr. P. 2016

(a) Scope. This Rule and the Court's Memorandum Regarding Allowance of Compensation and Reimbursement of Expenses for Court-Appointed Professionals, as amended from time to time and posted on the Court's website, govern all applications for compensation or reimbursement filed pursuant to Fed. R. Bankr. P. 2016.

(b) Burden of Proof. A professional person seeking compensation must file an application for fees and reimbursement for expenses before receiving any payment from the estate or applying any retainer that is property of the estate. The applicant has the burden of proof.

(c) Fee Application Service. A professional person applying for compensation or reimbursement must file an application and request a hearing or use the notice and opportunity to object procedures as set forth in LBR 9013(c), except that the applicant must then use the Notice to Creditors and Other Parties in Interest form appended to these Rules as Exhibit 4A or 4B (depending on applicable chapter).

(1) Applications of $1,000 or Less. Except as provided in LBR 2016-2(d)(4), for fee applications of $1,000.00 or less, service of the application, notice, supporting documents, and proposed order must be made on the debtor, the trustee, and the United States Trustee. If all such parties entitled to notice agree, then the compensation requested may be approved by stipulation.

(2) Applications for More than $1,000. For applications exceeding $1,000.00, the application, notice, supporting documents, and proposed order must be served on the debtor, the United States Trustee, the trustee, creditors' committee (if none, on the 20 largest creditors holding unsecured claims), equity security holders' committee, and their attorneys, and the notice must be served on all other interested parties, except as limited by the terms of a confirmed Chapter 13 plan. If a confirmed Chapter 13 plan otherwise limits service and notice, service of the application and service of the Notice shall conform to the terms of the confirmed Chapter 13 plan.

(d) Special Rules for Fee Applications in Chapter 13 Cases.

(1) "No look" Attorney Fee. In a Chapter 13 case, the Court may approve compensation of a debtor's attorney up to the "no look" fee without requiring the attorney to file a formal fee application or an itemized statement of services rendered. The current "no look" fee is designated by this Court's Memorandum Regarding Allowance of Compensation and Reimbursement of Expenses for Court-Appointed Professionals, as amended from time to time. A copy of the most recent Memorandum is appended to these Rules as Exhibit 5. An attorney requesting a "no look" fee for having received certification, as set forth in item 16 of the Court's Memorandum must first file a certificate in the form appended to these Rules as Exhibit 6. The Clerk will retain these certificates for judicial review.

(2) Fee Applications Beyond the "No Look" Fee. The Court will not approve additional fees beyond the "no look" fee unless the attorney files a fee application documenting all services provided from the beginning of the case, including services that were covered by the "no look" fee. The fee application must comply with the requirements set forth in this Court's Memorandum Regarding Allowance of Compensation and Reimbursement of Expenses for Court-Appointed Professionals, as amended from time to time. The method for computing additional compensation must also comply with the attorney's fee agreement, prevailing local billing practices, and governing case law.

(3) Substitute Counsel. For counsel who become substitute counsel in a case after compensation has already been paid or awarded to a different attorney or professional person in the case, substitute counsel's application should state the date of retention, the dates of any previous applications submitted by substitute counsel, the amounts of compensation and expenses previously requested by substitute counsel, the date of each approval, and the amounts previously approved to substitute counsel.

(4) Limitation Affecting Fee Petitions Under $1,000. In a case under Chapter 12 or 13, the procedure permitted under LBR 2016-2(c)(1) may be used only with respect to a final fee application.

(5) Post-Confirmation Fee Petitions. Every fee petition filed after confirmation of a Chapter 12 or 13 plan shall describe the impact that approving the application would have on the plan, explaining how or whether the additional fees and expenses will (i) be paid through the plan; (ii) affect the distribution to creditors; (iii) affect the duration of the plan; and (iv) otherwise adversely affect the parties in interest, including the debtor or debtors.