Mount Diablo Young Men's Christian Associatio

UNITED
STATES
BANKRUPTCY
COURT
NORTHERN DISTRICT OF CALIFORNIA
1300 Clay Street (2d fl.)
Oakland, CA. 94612
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Memorandum: Fee Application
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re 	No. 10-44367-EDJ-11
Chapter 11
MOUNT DIABLO YOUNG MEN’S
CHRISTIAN ASSOCIATION,
Debtor./
MEMORANDUM RE FEE APPLICATION
MacDonald & Associates, counsel for the debtor in the above-
captioned chapter 11 case, has requested a final allowance of
attorneys fees in the sum of $309,462 and expense reimbursement in
the sum of $6,468.93. 	The court will allow fees in a reduced amount
as hereinafter provided.
The two primary billers in this case were Iain A. MacDonald
(“MacDonald”) and Reno F.R. Fernandez III (“Fernandez”). 	MacDonald
is a highly experienced bankruptcy practitioner. 	As of April 16,
2010, the date of the petition herein, MacDonald had been a member
of the California State bar for over 38 years. 	MacDonald billed his
time in this case at the rate of $450 per hour prior to June 1,
2010, and at the rate of $550 per hour thereafter.
Signed: March 29, 2011

EDWARD D. JELLEN
U.S. Bankruptcy Judge

Entered on Docket
March 29, 2011
GLORIA L. FRANKLIN, CLERK
U.S BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
Case: 10-44367 Doc# 261 Filed: 03/29/11 Entered: 03/29/11 11:07:04 Page 1 of
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UNITED
STATES
BANKRUPTCY
COURT
NORTHERN DISTRICT OF CALIFORNIA
1300 Clay Street (2d fl.)
Oakland, CA. 94612
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2	Memorandum: Fee Application
Fernandez, by contrast, is a relatively young and less
experienced attorney. 	He was admitted to the California bar on
December 4, 2007. 	Thus, at the date of the petition herein,
Fernandez had been practicing law for slightly in excess of two
years, four months. 	The fee application at issue requests an
allowance for Fernandez’s at the rate of $335 per hour for the time
he spent prior to June 1, 2010, and at the rate of $450 per hour
thereafter.
The primary method for calculating fees in bankruptcy cases is
the "lodestar." 	In re Manoa Finance Co., Inc., 853 F.2d 687 (9th
Cir. 1988). 	Under this method, the appropriate allowance is
generally the number of hours the applicant actually and reasonably
expends in the performance of compensable services, multiplied by a
reasonable hourly rate. 	Manoa Finance Co., 853 F.2d at 691. 	See
also, Unsecured Creditors' Committee v. Puget Sound Plywood, Inc.,
924 F.2d 955, 957-58 (9th Cir. 1991).
Here, the court finds that Fernandez’s hourly billing rate is
excessive. 	On June 1, 2010, Fernandez, who had then been a member
of the California State bar for two and one-half years, started
billing at the same hourly rate at which MacDonald, with over 38
years of experience, was billing at the outset of this case.
The court finds that $335 an hour to be the more reasonable
hourly rate for Fernandez in this case, and requests MacDonald &
Associates to submit a proposed order providing for a final
allowance of fees herein that have been recalculated accordingly
Case: 10-44367 Doc# 261 Filed: 03/29/11 Entered: 03/29/11 11:07:04 Page 2 of
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UNITED
STATES
BANKRUPTCY
COURT
NORTHERN DISTRICT OF CALIFORNIA
1300 Clay Street (2d fl.)
Oakland, CA. 94612
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1Thus the final allowance would be an amount equal to the
time spent by the professionals other than Fernandez multiplied
by the hourly rates specified in the application, plus the time
spent by Fernandez from the date of the petition multiplied by
$335 per hour. 	The additional fees allowed would therefore be
the amount so calculated minus the amount of interim fees paid to
date. 	The order may also provide for the allowance of expense
reimbursement as requested.
3	Memorandum: Fee Application
from the date of commencement of this case. 1
In reducing fees, the court is in no way suggesting that the
court observed any deficiencies in the quality of the services
Fernandez rendered, or that any such services were not beneficial to
his client. 	However, one the factors that influences the
establishment of a reasonable hourly rate is experience, because of
the wisdom and efficiencies that go with it. 	See 11 U.S.C.
§ 330(a)(3)(E) (reasonable compensation to be determined in part by
the professional’s experience in the bankruptcy field); see also, In
re Maruko Inc., 160 B.R. 633, 640-41 (Bkrtcy.S.D.Cal 1993) (holding
that counsel’s lack of experience warranted a reduction in fees).
For Fernandez, such experience will come, but as of today, it still
lies ahead.
** END OF MEMORANDUM **
Case: 10-44367 Doc# 261 Filed: 03/29/11 Entered: 03/29/11 11:07:04 Page 3 of
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UNITED
STATES
BANKRUPTCY
COURT
NORTHERN DISTRICT OF CALIFORNIA
1300 Clay Street (2d fl.)
Oakland, CA. 94612
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4	Memorandum: Fee Application
COURT SERVICE LIST
Iain A. Macdonald
Macdonald and Associates
221 Sansome St. Third Floor
San Francisco, CA 94104
Reno F.R. Fernandez
Macdonald and Assoc.
221 Sansome St.
San Francisco, CA 94104
Case: 10-44367 Doc# 261 Filed: 03/29/11 Entered: 03/29/11 11:07:04 Page 4 of
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