Larry Duane Sugaski and Emma Jean Sugaski

OCR transcription for search; preserved printed pages are authoritative

The court incorporates by reference in this paragraph and adopts as the findings and orders
of this court the document set forth below.

[S/

Russ Kendig
United States Bankruptcy Judge

esscehiattt

UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF OHIO

EASTERN DIVISION
IN RE: CHAPTER 7
LARRY DUANE SUGASKI AND ) CASE NO. 07-63732
EMMA JEAN SUGASKI )
° ) JUDGE RUSS KENDIG
Debtors.
) MEMORANDUM OF OPINION
) (NOT INTENDED FOR
) PUBLICATION)

On May 29, 2011, Richard H. Nemeth, attorney for Debtors, filed an application for
compensation from the bankruptcy estate. He seeks a total of $7,777.23: $7,707.23 in fees
and $70.00 in expenses. Josiah L. Mason, chapter 7 trustee, objected to the application.
Although a hearing was scheduled, it was not held because the parties reached an agreement
whereby the trustee agreed to pay Mr. Nemeth $500.00 from the estate. The parties

submitted an agreed order.

The court has jurisdiction of this proceeding pursuant to 28 U.S.C. § 1334 and the
general order of reference entered in this district on July 16, 1984. Venue in this district and
division is proper pursuant to 28 U.S.C. § 1409. This is a core proceeding under 28 U.S.C.

§ 157(b)(2)(A), (B) and/or (O).

__ This opinion is not intended for publication or citation. The availability of this
opinion, in electronic or printed form, is not the result of a direct submission by the Court.

Upon review of the application, the court must deny it in its entirety under the
Supreme Court’s decision in Lamie v. United States Trustee, 540 U.S. 526 (2004). There,
the Court stated that “§ 330(a)(1) does not authorize compensation awards to debtors’
attorneys from estate funds, unless they are employed as authorized by § 327. Ifthe attorney
is to be paid from estate funds under § 330(a)(1) in a Chapter 7 case, he must be employed
by the trustee and approved by the court.” Lamie at 539; accord Clippard v. Hilburn’s Paint
and Body Shop. Inc. (In re Hilburn’s Pain and Body Shop, Inc.), 2004 WL 953760 (6" Cir.
2004) (unpublished). Mr. Nemeth was not employed by the trustee on behalf the estate. The

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fact that any of his work may have benefitted the estate is immaterial.

An order will be entered immediately.

# #t #

Service List:

Richard H Nemeth
526 Superior Ave NE
#410

Cleveland, OH 44114

Josiah L Mason

153 W Main St

PO Box 345

Ashland, OH 44805-2219

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