Limited Editions Rubberstamps

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-1-	MEMORANDUM OF DECISION
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re: 	) 	Bankruptcy Case
) 	No. 05-30946-TEC
LIMITED EDITION RUBBERSTAMPS, ) 	Chapter 7
)
) 	Date: 	September 26, 2005
) 	Time: 	9:30 a.m.
) 	Crtrm: 235 Pine St., 23 rd Fl.
Debtor. 	) 	San Francisco, CA
______________________________)
MEMORANDUM OF DECISION
On September 26, 2005, the court held a continued hearing on
the United States Trustee’s Motion to Review Fees paid to Debtor’s
counsel. 	Frank M. Cadigan, Jr. appeared for the United States
Trustee. 	Aron M. Oliner appeared for the chapter 7 trustee.
Debtor’s counsel did not appear.
FACTS
Debtor is a sole proprietorship, the fictitious business name
of Leigh Edwards. 	Although Debtor is not a separate legal entity,
Ms. Edwards and Debtor filed separate no-asset, chapter 7
bankruptcy cases on April 3, 2005. 	Jonathan G. Chance received
$2,500 for attorney fees in the Limited Editions Rubberstamps case
and $1,000 for Ms. Edwards’ case. 	The United States Trustee moves
Signed and Filed: October 19, 2005
________________________________________
THOMAS E. CARLSON
U.S. Bankruptcy Judge
________________________________________
Entered on Docket
October 20, 2005
GLORIA L. FRANKLIN, CLERK
U.S BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
Case: 05-30946 Doc# 32 Filed: 10/19/05 Entered: 10/20/05 14:16:49 Page 1 of 7

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1/ Mr. Chance’s billing summary totals the fees as $6,930.
Pursuant to the court’s calculations, the line-item fees total
$6,454.50.
2/ The actual number of hours is 9; however, Mr. Chance did
not always charge for the full amount of the time billed. 	7.2
hours represents the charge recorded ($1981.50) divided by the
billing rate ($275).
3/ An identical OSC was also filed in Ms. Edwards’ bankruptcy
case.
-2-	MEMORANDUM OF DECISION
for a review of Mr. Chance’s fees in the Rubberstamps case, and for
disgorgement of any fees determined to be excessive.
After the continued hearing, Mr. Chance submitted time
records, which he represents is for work related only to the
Rubberstamps case. 	These time records set forth fees totaling
$6,454.50, at a rate of $275 per hour. 1/ 	The court categorizes
these fees as follows:
(1) 	$1,981.50 for prepetition services (7.2 hours). 2/ 	This
sum represents $1,238 for meeting with the client to review
Debtor’s assets and debts, and $743.50 to review related documents.
Included in the document-review fees is $275 charged for “review of
client’s assets and inventory list re preparation of schedules”.
(2) 	$138 for 1/2 hour preparing and filing Debtor’s skeletal
voluntary petition. 	After the petition was filed, Mr. Chance
billed $83 to draft two e-mails regarding “creditor actions” and
the 341 meeting.
(3) 	$1,075 (3.9 hours) for Debtor’s Schedules and Statement
of Financial Affairs. 	These documents were filed in this case on
the same day that Ms. Edwards filed her Schedules and Statement of
Financial Affairs, and only after an Order to Show Cause was
entered directing Debtor to file the required documents. 3/
Case: 05-30946 Doc# 32 Filed: 10/19/05 Entered: 10/20/05 14:16:49 Page 2 of 7

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-3-	MEMORANDUM OF DECISION
(4) 	$1,677 for the section 341 meeting of creditors. 	More
than half of this amount ($907) was incurred obtaining two
continuances. 	Of this amount, $686 is for a personal appearance to
request a continuance. 	Mr. Chance never filed a stipulation
documenting the continuances.
(5) 	$754 regarding the chapter 7 trustee’s document requests.
(6) 	$746 for responding to the United States Trustee’s Motion
to Review Fees.
I determine that only one bankruptcy case was necessary. 	It
was sufficient for Ms. Edwards to file an individual case, listing
Limited Edition Rubberstamps as a fictitious business name she had
used. 	I also determine that Mr. Chance’s fees for the two cases
are excessive and should be reduced, and that Mr. Chance should be
required to repay the $209 fee for filing the unnecessary
bankruptcy case.
First, Ms. Edwards’ bankruptcy case is not complex. 	Ms.
Edwards owns no real property, and has no secured or priority debt.
Ms. Edwards owns personal property worth less than $20,000. 	The
documents Mr. Chance needed to review to draft Debtor’s petition,
Schedules and Statement of Financial Affairs are limited:
approximately 55 pages of documents related to Debtor’s
liabilities, and a two-page, detailed list regarding Debtor’s
assets.
FEES FOR PREPETITION SERVICES AND PETITION
Based on my review of the documents submitted by Debtor’s
counsel and counsel for the chapter 7 trustee, I find that $275 is
a reasonable fee for the prepetition services related to filing the
voluntary petition. 	The voluntary petition is a skeletal, two-page
Case: 05-30946 Doc# 32 Filed: 10/19/05 Entered: 10/20/05 14:16:49 Page 3 of 7

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-4-	MEMORANDUM OF DECISION
document, that provides only the most basic information about
Debtor (i.e., Debtor’s name, address, county of residence, type of
Debtor, debt nature, and estimated number of creditors, assets, and
debts). 	The court was able to determine this limited information
from the documents in less than half an hour. 	I find that Mr.
Chance needed no more than one hour to review Debtor’s documents,
draft the petition, and obtain his client’s signature.
FEES RE SCHEDULES AND STATEMENT OF FINANCIAL AFFAIRS
I find that $825 ($275 x 3) is a reasonable fee for drafting,
revising and filing Debtors’ Schedules and Statement of Financial
Affairs. 	Drafting these documents required Mr. Chance to review a
limited number of documents, a detailed review of which should have
taken no more than one hour. 	Communicating with Ms. Edwards
regarding the draft Schedules and Statement of Financial Affairs
and finalizing these documents for filing reasonably should have
taken no more than two hours.
I find that the $825 reasonable fee should be reduced in this
case to $0 for the following reasons. 	First, counsel was paid in
full for drafting the Schedules and Statement of Financial Affairs
in Ms. Edwards’ bankruptcy case, and only one bankruptcy case
should have been filed. 	Second, the Schedules filed by Mr. Chance
are infirm. 	Assuming, arguendo, that a separate filing had been
necessary, the Schedules filed in Debtor’s case omit significant
liabilities known to Mr. Chance both from the documents and from
specific comments made by Ms. Edwards (see 5/16/05 and 5/17/05 fax
from Ms. Edwards re her “great reservations” about “significant
errors” in the Schedules). 	Third, even if some fee were
appropriate for the unnecessary second set of Schedules, the
Case: 05-30946 Doc# 32 Filed: 10/19/05 Entered: 10/20/05 14:16:49 Page 4 of 7

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-5-	MEMORANDUM OF DECISION
Schedules filed in this case are less complex than those filed in
Ms. Edwards’ case because there is no Schedule I & J (income and
expense schedules), yet Mr. Chance sought and was paid less for his
work on Ms. Edwards’ Schedules. 	The same holds true regarding
Debtor’s Statement of Financial Affairs and the related fees.
FEES RE 341 MEETING
I find that $700 is a reasonable fee for continuing and
attending the 341 meeting, and for traveling to and from the 341
meeting in San Francisco from Mr. Chance’s office in Redwood City.
This fee represents two hours for substantive legal work, and two
hours travel time at a reduced rate of $75 per hour. 	In so
finding, I note the following. 	First, the continuances obtained by
Mr. Chance were informal, and never documented by a filed
stipulation. 	Thus, the cost of the continuances should have been
minimal. 	Second, Mr. Chance provides no explanation why he
appeared in person to obtain one of the continuances, which could
have been continued by a less expensive method.
I find that this fee award should be reduced to $0, because
the 341 meeting in this case was necessary only because Mr. Chance
filed the unnecessary bankruptcy case on behalf of Ms. Edward’s
sole proprietorship. 	Further, Mr. Chance has already been paid for
his attendance at the 341 meeting in Ms. Edwards’ bankruptcy case.
OTHER FEES
I find that the $754 sought by Mr. Chance related to the 2004
Order and the chapter 7 trustee document requests are reasonable,
and that Mr. Chance has not yet been paid on account of these
services.
Case: 05-30946 Doc# 32 Filed: 10/19/05 Entered: 10/20/05 14:16:49 Page 5 of 7

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-6-	MEMORANDUM OF DECISION
I find that Debtor should pay no fees related to Mr. Chance’s
defense of the United States Trustee Motion to Review Fees, because
this work benefitted only Mr. Chance, and because Mr. Chance did
not prevail on the Motion.
I find that Mr. Chance should reimburse Ms. Edwards the $209
fee for filing two separate chapter 7 cases that should have been
filed as one.
SUMMARY
Mr. Chance seeks $3,500 for his work in two cases that should
have been filed as one case. 	Mr. Chance has already received
$1,000 for his services related to these cases. 	For the reasons
stated above, I find that Mr. Chance should be paid as follows: (1)
$275 for prepetition services and services related to filing
Debtor’s petition, (2) $0 for services related to filing Debtor’s
Schedules and Statement of Financial Affairs, (3) $0 for services
related to the section 341 meeting, (4) $0 for services related to
responding to the United States Trustee’s Fee Review Motion, and
(5) $754 for services related to the 2004 Order and the chapter 7
trustee document requests. 	I find that Mr. Chance should repay Ms.
Edwards the $209 fee for filing the unnecessary case.
**END OF MEMORANDUM**
Case: 05-30946 Doc# 32 Filed: 10/19/05 Entered: 10/20/05 14:16:49 Page 6 of 7

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Court Service List
Leigh Edwards
fbda Limited Editions Rubberstamps
1011c Bransten Rd.
San Carlos, CA 94070
Jonathan G. Chance
Law Offices of Jonathan G. Chance
1605 Middlefield Rd.
Redwood City, CA 94063
Janina M. Elder
P.O. Box 1657
Santa Rosa, CA 95402
Aron M. Oliner
Buchalter, Nemer, Fields and Younger
333 Market St. 25th Fl.
San Francisco, CA 94105-2130
Office of the U.S. Trustee
235 Pine Street
Suite 700
San Francisco, CA 94104
Case: 05-30946 Doc# 32 Filed: 10/19/05 Entered: 10/20/05 14:16:49 Page 7 of 7