Urban America Development Co., Matter of
| Decision Date | 07 November 1977 |
| Docket Number | No. 77-1327,77-1327 |
| Citation | 3 BCD 1376,564 F.2d 808 |
| Parties | In the Matter of URBAN AMERICA DEVELOPMENT COMPANY, Debtor. Howard E. TAYLOR, Appellant, v. DES MOINES SAVINGS AND LOAN ASSOCIATION, Appellee. |
| Court | U.S. Court of Appeals — Eighth Circuit |
John H. Neiman, Des Moines, Iowa, made appearance and filed appendix, brief and reply brief for appellant.
E. S. Tesdell, Jr., and Tom W. George, Des Moines, Iowa, made appearance and filed brief for appellee.
Before GIBSON, Chief Judge, VOGEL, Senior Circuit Judge, and BRIGHT, Circuit Judge.
This is an appeal from an order of the district court affirming the award of fees and expenses to appellant trustee by the Bankruptcy Judge in an unsuccessful Chapter X proceeding. Jurisdiction is by leave of this court as required by Section 250 of the Bankruptcy Act, 11 U.S.C. § 650. The sole issue raised is whether the Bankruptcy Judge erred in the determination of the amount of compensation allowed to the appellant.
Section 241 of the Bankruptcy Act, 11 U.S.C. § 641, provides for compensation of trustees in reorganization proceedings under Chapter X as follows:
§ 641. Petitioning creditors; court officers; attorneys therefor
The judge may allow reimbursement for proper costs and expenses incurred by the petitioning creditors and reasonable compensation for services rendered and reimbursement for proper costs and expenses incurred in a proceeding under this chapter
(3) by the trustee and other officers, and the attorneys for any of them; . . .
When a reorganization proceeding is dismissed, as was the case here, the judge is empowered to allow for such reasonable compensation as the trustee is entitled to under § 241. Bankruptcy Act § 246, 11 U.S.C. § 646. In determining the award of compensation, the Bankruptcy Judge has broad discretion and the appellate courts will not interfere with its award in the absence of a clear abuse of discretion or an erroneous application of law. See In re York International Building, Inc. v. Chaney, 527 F.2d 1061, 1068 (9th Cir. 1975); Massachusetts Mutual Life Ins. Co. v. Brock, 405 F.2d 429, 432 (5th Cir. 1969).
What constitutes "reasonable compensation" depends in each case on the facts and circumstances concerning the trustee's services and the particular reorganization proceeding. In reviewing a compensation allowance to an attorney for a trustee under § 241, the court in In re Farrington Manufacturing Company, 540 F.2d 653, 657 (4th Cir. 1976), stated:
In determining what is reasonable compensation in a particular case, the Court must give consideration to the time spent, to the character of the services rendered, the results achieved, the size of the estate, the evidence relating to the services rendered and "the economic spirit" of the Act itself.
The same factors are relevant in determining the allowance of compensation to a trustee under § 241. See 6A Collier on Bankruptcy, par. 13.02, pp. 909-913, par. 1314, pp. 997-998 (14th ed. 1972).
With these guidelines in mind, we have examined the very substantial record herein. That record indicates that the original valuation of the bankrupt's estate was $3,833,801.00. The time schedule filed by the appellant indicates that he has expended 594 hours over a period dating from September 17, 1974, to October 6, 1975, in performance of his duties. In addition to these hours, there were approximately 150 to 200 hours which the appellant allegedly worked but for which he did not account and made no claim for compensation. For the 594 hours accounted for, the appellant sought compensation in the amount of $26,000.00, or $43.77 per hour, plus...
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In re Garland Corp.
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