Morrison & Foerster: Fees Of More Than $23.1M Valid; Reductions Already Made

by Tara Arick on September 12, 2013 · 0 comments

in Bankruptcy

The law firm of Morrison & Foerster on Sept. 9 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York contending that it is entitled to more than $ 23.1 million in fees and expenses for its role as bankruptcy counsel for Residential Capital LLC (ResCap) (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).

ResCap filed for Chapter 11 bankruptcy on May 14, 2012.

Fees, Reduction 

Morrison & Foerster argues that it has already agreed to a reduction in fees and expenses valued at $ 39,526.50. In light of that reduction, the firm says that fees of $ 22,750,816.10 and expenses of $ 350,910.44 are appropriate.

One of the reductions to which Morrison & Foerster have already agreed is for $ 19,735.50 for time entries that the U.S. trustee contended were “impermissibly vague.”

Morrison & Foerster says that no further detail would be needed to understand the time entries in question if they were “reviewed in the context of surrounding time entries.” Nevertheless, the firm says it has agreed to reduce its requested compensation by $ 19,735.50 to resolve the objection.

Fee Objections

Another agreed-upon reduction was for $ 4,791 related to fees the firm charged when it reviewed and responded to the U.S. trustee’s previous objections to second interim fee applications filed by various professionals.

The firm says it provided the U.S. trustee services to assist the trustee and the Bankruptcy Court as it prepared to rule on the fee applications.

However, Morrison & Foerster removed those fees from its current request.

Loan Sale

The U.S. trustee also objected to Morrison & Foerster’s request of $ 174,830.50 for services rendered by Kenneth Kohler, who is of counsel to the firm’s corporate department, on grounds that he billed excessive attorney time.

Morrison & Foerster says that Kohler’s costs should be reimbursed in full because he is one the principal attorneys responsible for documenting and successfully closing ResCap’s whole loan sale with Berkshite Hathaway Inc., as well as the sale of ResCap’s mortgage-servicing and origination business with Ocwen Loan Servicing LLC and Walte Investment Management Corp.

Consequently, with consideration of the reductions to which the firm has already agreed, Morrison & Foerster contend that the Bankruptcy Court should approve interim compensation for $ 22,750,816.10 and interim reimbursement of expenses for $ 350,910.44.

Morrison & Foerster is represented by Lorenzo Marinuzzi, Erica J. Richards, Gary S. Lee and Meryl L. Rothchild of Morrison & Foerster in New York.

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