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 - Motion for Review
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 MOTION FOR REVIEW OF TRANSACTION
The above debtor has filed a motion requesting the court to
review a payment of $32,704.04 it made to Union Bank (“Union”) to
cover the attorneys’ fees portion of Union’s demand for full payment
of its secured claim herein. 	See Bankruptcy Code § 506(b). 	Union
made the demand, and the debtor made the payment, in connection with
the closing of a sale by the debtor of property on which Union held
a lien.
The debtor also requests the court, based on its review, to
determine the amount of reasonable attorneys’ fees it owes Union as
part of Union’s secured claim, and order Union to return any
excessive portion of the fees the debtor paid.
////
Signed: July 29, 2010

EDWARD D. JELLEN
U.S. Bankruptcy Judge

Entered on Docket
July 29, 2010
GLORIA L. FRANKLIN, CLERK
U.S BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
Case: 10-44367 Doc# 112 Filed: 07/29/10 Entered: 07/29/10 15:50:09 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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1The court appreciates the fact that it has an independent
duty to review applications for fees filed by officers of the
estate, even in the absence of an objection. 	In re Busy Beaver
Building Centers, Inc., 19 F.3d 833, 841 (3d Cir. 1994); In re
Auto Parts Club, Inc., 211 B.R. 29, 33 (BAP 1997). 	Union,
however, is not an officer of the estate required to submit a fee
application.
2	Memorandum - Motion for Review
The debtor’s motion alleges that the debtor “never received an
accounting” of the fees it paid Union, and that Union refused to
provide same. 	Debtor also alleges that “Union . . . has not
provided any evidence of legal services upon which a determination
of reasonableness can be made.”
The debtor’s motion does not explain how the court is to
determine reasonableness in the absence of an accounting or “any
evidence of legal services.” 	Nor does the motion state why the
debtor cannot utilize the numerous tools available to a party in a
bankruptcy case to obtain information. 	See, e.g., Fed. R. Bankr. P.
9014(c) and 2004.
Suffice it to say that it would not be appropriate for the
court to conduct discovery, formal or informal, to obtain the
information the debtor lacks. 	Nor would it be appropriate for the
court to preside at any hearings at which the court, rather than the
debtor or creditor’s committee, is acting as Union’s adversary with
respect to the issue of Union’s appropriate payment out of the
estate. 1 	Nor can the court engage with Union or its counsel in any
exchanges of information and legal argument, or settlement
discussions (all part of the normal process of dispute resolution).
Case: 10-44367 Doc# 112 Filed: 07/29/10 Entered: 07/29/10 15:50:09 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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3	Memorandum - Motion for Review
The court will therefore issue its order denying the debtor’s
motion, without prejudice to any further proceedings initiated by
any party in interest regarding any payments to Union that the
debtor made during the course of these chapter 11 proceedings.
*** END OF MEMORANDUM ***
Case: 10-44367 Doc# 112 Filed: 07/29/10 Entered: 07/29/10 15:50:09 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 - Motion for Review
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
Nicolas DeLancie
Jeffer, Mangers, Butler & Marmaro LLP
2 Embarcadero Center
Fifth Floor
San Francisco, CA 94111-3824
Robert L. Eisenbach, III
Cooley Godward Kronish
101 California St. 5th Fl.
San Francisco, CA 94111-5800
Margaret H. McGee
Office of the U.S. Trustee
1301 Clay St. #690N
Oakland, CA 94612-5217
Case: 10-44367 Doc# 112 Filed: 07/29/10 Entered: 07/29/10 15:50:09 Page 4 of
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