Congress of National Black Churches

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLUMBIA
In re
CONGRESS OF NATIONAL BLACK
CHURCHES,
Debtor.
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Case No. 03-02296
(Chapter 7)
SUPPLEMENTAL OPINION AND ORDER DETERMINING THAT $5,407.28 OF
COMPENSATION RECEIVED BY DEBTOR'S COUNSEL WAS UNREASONABLE AND
REQUIRING DISGORGEMENT OF THAT AMOUNT TO THE CHAPTER 7 TRUSTEE
Pursuant to a hearing of November 2, 2005, and the court's
oral opinion of that date addressing the United States Trustee's
Motion to Examine Debtor's Transactions With Attorney, it is
ORDERED that the court determines that:
1. Of the compensation of $15,438.69 received by the
debtor's attorneys, the law firm of Crowell & Moring,
relating to debt or bankruptcy counseling, the amount of
$1,674.19 for which no invoice has been submitted was
unreasonable compensation received by the law firm, only
$13,764.50 in billings having been submitted in the evidence
provided the court.
The order below is hereby signed.
Signed: November 02, 2005.
_____________________________
S. Martin Teel, Jr.
United States Bankruptcy Judge
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2. With respect to the fee amounts set forth in the
first two statements of account attached to the law firm's
September 16, 2003 billing statement--which are
unaccompanied by statements of who performed the tasks and
how much time was spent on the respective tasks--only half
of these amounts is reasonable compensation, and thus the
respective amounts of $326.25 and $890.00 in fees (derived
by halving the fees billed in the two statements of account)
constitute unreasonable compensation received by the law
firm.
3. Of the fees and expenses in the total amount of
$1,391.84 set forth in the third statement of account
attached to the September 16, 2003 billing letter, no
portion was a reasonable amount to charge to the debtor, and
the $1,391.84 constitutes unreasonable compensation received
by the law firm.
4. With respect to the October 13, 2005 billing
letter, and the $3,375 of fees charged with respect to Karen
Hastie Williams--who was an attorney without bankruptcy
experience but billing at the rate of $450 per hour in this
instance for performing bankruptcy filing work that, as the
law firm conceded, could have been performed by an
experienced bankruptcy attorney in a smaller firm billing at
lower rates (rates which the law firm has not shown would
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3	O:\JUDGTEMP\Congress of National Black Churches Order re Unreasonable Compensation Received.wpd
exceed $300 per hour)–-the law firm received unreasonable
compensation in the amount of $1,125.00.
5. The total amount of unreasonable compensation
received by the law firm was $5,407.28.
It is further
ORDERED that within 21 days after entry of this order the
debtor's law firm, Crowell & Moring, shall disgorge to the
chapter 7 trustee, William Douglas White, the sum of $5,407.28.
[Signed and dated above.]
Copies to: Debtor; Debtor's Attorney; Dennis J. Early, Assistant
United States Trustee; William Douglas White.
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