Gary M. Pusateri

1:09-bk-00583DcbNov 30, 2009

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UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLUMBIA
In re
GARY M. PUSATERI,
Debtor.
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Case No. 09-00583
(Chapter 13)
Not for Publication in
West’s Bankruptcy Reporter
FURTHER MEMORANDUM DECISION AND
ORDER PARTIALLY ALLOWING FEE APPLICATION
The debtor’s counsel sought $7,977.50 in fees and expenses
($7,752.50 in fees and $225.00 in expenses). 	By a prior
memorandum decision and order, I allowed $4,500.00 in fees, and
deferred ruling on the balance of the application until counsel
had an opportunity to file an amended Rule 2016(b) statement that
was consistent (or more consistent) with the fee application, and
an amended fee application that disclosed the expenses incurred.
I
The debtor’s counsel has filed a response to my order in
which he correctly observes that I overlooked an amended Rule
2016(b) statement that was already on file. 	That moots the Rule
2016(b) issue. 	The amended Rule 2016(b) statement discloses a
$10 payment received that was not disclosed in the prior
The document below is hereby signed.
Signed: November 30, 2009.
_____________________________
S. Martin Teel, Jr.
United States Bankruptcy Judge
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1 	In a footnote to the prior decision, I assumed “that by
such entries as “0.30 minutes” the debtor’s counsel means 30
minutes and not three tenths of a minute (and not .30 hours).” 	I
stated that “[t]he debtor’s attorney’s calculation of total time
does not jibe with any of those interpretations.” 	Upon re-
calculation, it appears that the debtor’s attorney did treat such
entries as “0.30 minutes” to be .30 hours. 	My recalculation of
time when treating the entries that way does indeed arrive at the
same total time of 22.15 hours as appears on the fee application.
If the debtor’s counsel meant such entries as “0.30 minutes” to
be 30 minutes, which would be .5 hours, his treating such entries
as .3 hours has under-caclulated the number of hours he spent by
approximately 3.77 hours. 	But I will use his 22.15-hour total
without prejudice to his seeking additional fees if he indeed did
err in how he recorded his time. 	Obviously such entries as “0.30
minutes” did not mean three-tenths of a minute.
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statement.
II
Counsel also explains that tasks took longer than ordinary
because the debtor had health issues that necessitated meeting
with the debtor at his residence in order to prepare filings,
thus adding travel time to the time spent preparing filings.
That is an adequate explanation to justify his time in entry for
preparing a motion to extend time as being reasonable. 	The time
entries are all reasonable. 1
III
The remaining issue is expenses. 	Reimbursement of expenses
is treated by the Bankruptcy Code as distinct from compensation
for services in the case of professionals employed by a trustee,
see 11 U.S.C. § 330(a)(1)(B), but in the case of counsel for a
chapter 13 trustee, 11 U.S.C. § 330(a)(4)(B) permits “reasonable
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compensation to the debtor’s attorney for representing the
interests of the debtor in connection with the bankruptcy case,”
but it makes sense that such compensation for services includes
compensation for incurring expenses on behalf of the debtor. 	The
amended Rule 2016(b) statement failed to treat expenses as not
covered by counsel’s hourly fee rate, but I will accept his
representation that expenses were independent of the hourly rate.
Counsel’s most recent filing lists the following categories
of expenses:
1. 	Photocopying; Use of facsimile machine;
2. 	Use of computer services with Best Case Bankruptcy
Program;
3. 	Use of internet services including email delivery
4. 	Use of cell and office telephone
5. 	Travel to courthouse for meeting of creditors
6. 	Consultation with Consumer Counseling of Atlanta to
obtain pre and postcounseling sessions;
7. 	Obtain Consumer Liability Report—credit report
information
8. 	Use of Office Staff working with the debtor and
assembling documents and information
9. 	Postage/paper supplies
But the application and this most recent filing fail to provide
adequate detail regarding the expenses because it only lists
categories without indicating the amounts incurred for each
category, and the per unit charge, as required by Local
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Bankruptcy Rule 2016-1(i). 	Having decided to itemize expenses
instead of charging a flat fee for expenses, counsel became
obligated to keep accurate records of the amounts of expenses
incurred in each category if he wishes to recover such expenses.
Counsel represents that “[i]n the typical case where a flat
fee is charged these expense items total about $175.00 and are
included along with the fees representing services,” and seeks
$225.00 in expenses for this atypical case. 	But the court cannot
take judicial notice of the expenses that are included in a flat
fee (because disclosures of flat fees do not include a breakdown
between services and expenses).
Moreover, many of the categories listed appear to be more
appropriately treated as overhead included in the attorney’s
hourly rate of $350.00. 	The following items appear to be
overhead: use of internet services including email delivery; use
of computer services with Best Case Bankruptcy Program (unless
there was a per usage charge by Best Case Bankruptcy Program for
such usage); use of cell and office telephone (unless there was a
separate charge to the attorney, as in the case of long-distance
calls for which the telephone company charges for each such
call); use of Office Staff working with the debtor and assembling
documents and information (unless the staff is paralegal staff
billed at an hourly rate, but the amended Rule 2016(b) statement
disclosed no hourly rate for paralegal compensation).
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5	O:\TEEL\Judge Temp Docs\Pusateri (Gary) - Further Mem Dec & Order re Fee Application.wpd
For all of these reasons, the expenses requested cannot be
allowed. 	If counsel files another fee application, he may at
that time, by providing adequate detail, seek reimbursement of
expenses disallowed at this time.
IV
In accordance with the foregoing, it is
ORDERED that in addition to the $4,500.00 allowed by the
court’s prior memorandum decision and order, the debtor’s
attorney’s application (Dkt. No. 38) for compensation is allowed
as to an additional $3,242.50 of the amounts sought, and the
chapter 13 trustee shall pay that amount as an allowed
administrative claim in this case. 	It is further
ORDERED that $10.00 of the fee application is disallowed
based on the debtor’s having paid $10.00 of the fees. 	It is
further
ORDERED that the application’s request for an award of
$250.00 in expenses is denied without prejudice.
[Signed and dated above.]
Copies to: Debtor; Debtor’s attorney; Chapter 13 Trustee.
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