EquiMed, Inc.

1 The Trustee discloses that he previously received a compensation award of $215,000.00.
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
In Re: 	*
EQUIMED, INC., 	* 	Case No. 	00-11147 PM
* 	Chapter 	7
*
Debtor. 	*
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MEMORANDUM OF DECISION
This matter came before the Court on the Application Requesting Second Interim
Compensation to Chapter 7 Trustee for the Period February 1, 2002 Through December 31, 2003
(the Application), filed by the Chapter 11 Trustee, Merrill Cohen (the Trustee). The Trustee seeks
allowance of compensation totaling $175,000.00 for 524.60 hours and reimbursement of expenses
incurred totaling $1,098.25. The Trustee asserts that, based on receipts of $17,018,906.19
(excluding receipts in the Nixon Equipment Corporation and George Washington Real Estate
Corporation bankruptcy cases), $533,817.19 would be “allowable” under 11 U.S.C. § 326(a). 1
The Court notes that a determination of the maximum limit under 11 U.S.C. § 326(a) does not
create an entitlement to that amount. In re Hobbs, 108 B.R. 93, 94 (BC Md. 1989).
Date signed March 23, 2004
Case 00-11147 Doc 626 Filed 03/24/04 Page 1 of 2

2 The Compensation Guidelines suggest that expenses be summarized in the fee
application. Although an expense worksheet is appended to the Application, the Trustee has
merely provided a lump sum total of the various expenses without explanation or summary.
Further, there is no description of the first category wherein $6.94 was expended.
A review of the billing statements reflects that the Application fails to conform with the
Compensation Guidelines. The Trustee’s time is not organized by task but presented
chronologically; on occasion, the Trustee utilizes a broad “lumping” of services; and travel was
not described with specificity (i.e., the mode and time of travel, the necessity for the travel and
whether any substantive work was performed while traveling).
Nonetheless, the Court recognizes the complexity of this case, the amount of time that the
Trustee expended and the benefit the Trustee’s services provided to this estate. Further, rather
than seeking the maximum commissions under 11 U.S.C. § 326(a), the Trustee requests a
considerably reduced sum. For these reasons, the Court approves the Trustee’s request for
allowance of compensation and reimbursement of expenses2 and the Court will enter an
appropriate order.
cc: 	Debtor
United States Trustee
Parties requesting notice
End of Memorandum Decision
Case 00-11147 Doc 626 Filed 03/24/04 Page 2 of 2