washington mutual (wmi) - objection to summary of twenty-seventh monthly application of miller &...

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In re Washington Mutual, Inc., Case No. 08-12229 (MFW)United States Bankruptcy Court, District of DelawareObjection to Summary of Twenty-Seventh Monthly Application of Miller & Chevalier Chartered for Allowance of Compensation for Services Rendered and for Reimbursement of Expenses as Special Counsel to the Debtors and Debtors in Possession of the Period from July 1-31, 2011http://www.kccllc.net/documents/0812229/0812229110921000000000010.pdf

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Page 1: Washington Mutual (WMI) - Objection to Summary of Twenty-Seventh Monthly Application of Miller & Chevalier for Allowance of Compensation for Services Rendered and for Reimbursement

.-,.,.. 1; � '- .... f,; " UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE 20\\ SEP 2.0 p� 2: "::.u

In re:

WASHINGTON MUTUAL INC., et at,: Chapter 11

Case No. 08-12229 (M� Debtors.

Jointly Administered Objection Deadline: September 20, 2011 at 4:00 p.m. (ET)

OBJECTION TO SUMMARY OF TWENTY -SEVENTH MONTHLY APPLICATION OF MILLER & CHEVALIER CHARTERED FOR ALLOWANCE OF COMPANSATION FOR

SERVICES RENDERED AND FOR REIMBURSEMENT OF EXPENSES AS SPECIAL COUNSEL TO THE DEBTORS AND DEBTORS IN POSSESSION OF THE PERIOD FROM

JULY 1 -31, 2011

As an equity shareholder of WMI, I object to the fee application of Miller & Chevalier Chartered (docket #8567) based on excessive hourly billing fees.

Miller and Chevalier Chartered is a Washington, D.C. based firm. In comparing their requested hourly billing rates to those presented by the US Department of Justice in the so called "Laffey Matrix" (Exhibit A), it illustrates that the fees requested are excessive.

Comparison of Attorneys' Fees

Name

Maria O. Jones Steven R. Dixon K. Morrison Sneade J. Kossak

Rex Winter

Counsel . (2QQ5} .... . Associate .... (?OQ?J ....... . Associate

(2009)

Associate) 62.3 "" "««'''' . . . . . $19,936

1 Mr. Winter has passed the D.C. Bar but has not yet been admitted to practice.

1

Laffey ......�f!u,r.!y rate

• $435

$4,332.50

$787.50

$4,984

¨0¤q6=+)5 *¢«
0812229110921000000000010
Docket #8649 Date Filed: 9/21/2011
Page 2: Washington Mutual (WMI) - Objection to Summary of Twenty-Seventh Monthly Application of Miller & Chevalier for Allowance of Compensation for Services Rendered and for Reimbursement

Again, when applying the Laffey Matrix, the applicant is charging for the use of two paralegals at the billing rate applicable to an attorney practicing 1-3 years. The billing of fees for all paralegal services is well above the Matrix schedule. The Laffey Matrix does not take into consideration the number of years one has been working in this capacity.

Comparison of Paralegals' Fees

Name Position Rate billed • (per hr)

K. Tafuri Legal • $240 .0.60 Assistant

L. Butler Legal $225 Assistant

M. Kennedy $180

. C. Gruenburg

The difference and subsequent damage to the estate is $39,207.00.

Respectfull y,

lakub Pedziwiatr An der Wuhlheide 104 12459 Berlin - Germany

2

Laffey . Difference hourly rate . in fees

$140

. $140 . $225

$14

140 $50

Page 3: Washington Mutual (WMI) - Objection to Summary of Twenty-Seventh Monthly Application of Miller & Chevalier for Allowance of Compensation for Services Rendered and for Reimbursement

Certificate of Service

I,) akub Pedziwiatr, certify that, on September 19th, 2011, I caused one copy of the foregoing to be served upon the parties below.

Washington Mutual, Inc. c/o Alvarez and Marsal Attn. John Maciel, Esquire 130 1 Second Ave, WMC330 1 Seattle, W A 98 10 1

Weil, Gotshal & Manges LLP Brian S. Rosen, Esquire 767 Fifth Avenue New York, NY 10 153

Weil, Gotshal & Manges LLP Marsha Goldstein, Esquire 767 Fifth Avenue New York, NY 10 153

Richards Layton & Finger P A Mark D. Collins, Esquire One Rodney Square PO Box 551 920 North King Street Wilmington, DE 19899

Office of the United States Trustee Jane M. Leamy, Esquire 844 King Street, Suite 2313 Lockbox 35 Wilmington, DE 19801

Akin Gump Strauss Hauer & Feld LLP Fred S. Hodara, Esquire One Bryant Park New York, NY 10036

Akin Gump Strauss Hauer & Feld LLP

Scott L. Alberino, Esquire 1333 New Hampshire Ave NW Washington, D.C. 20036

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Page 4: Washington Mutual (WMI) - Objection to Summary of Twenty-Seventh Monthly Application of Miller & Chevalier for Allowance of Compensation for Services Rendered and for Reimbursement

Akin Gump Strauss Hauer & Feld LLP David P. Simonds, Esquire 2029 Century Park E Ste 2400 Los Angeles, CA 90067

Akin Gump Strauss Hauer & Feld LLP Peter J. Gurfein, Esquire 2029 Century Park E Ste 2400 Los Angeles, CA 90067

Pepper Hamilton LLP David B. Stratton, Esquire Hercules Plaza, Suite 5 100 13 13 N. Market St Wilmington, DE 1980 1

Pepper Hamilton LLP Evelyn J. Meltzer, Esquire Hercules Plaza, Suite 5 100 13 13 N. Market St Wilmington, DE 1980 1

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Page 5: Washington Mutual (WMI) - Objection to Summary of Twenty-Seventh Monthly Application of Miller & Chevalier for Allowance of Compensation for Services Rendered and for Reimbursement

Exhibit A

�AFFEY �fATRIX -- 2003-2012 (2009-10 rates were unchanged from 2008-09 rates)

Years (Rate for June 1 - May 31, based on prior year's CPI-V)

Experience 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12

20+ years 380 390 405 425 440 465 465 475 495

11-19 years 335 345 360 375 390 410 410 420 435

8-10 years 270 280 290 305 315 330 330 335 350

4-7 years 220 225 235 245 255 270 270 275 285

1-3 years 180 185 195 205 215 225 225 230 240

Paralegals & 105 110 115 120 125 130 130 135 140 Law Clerks

Explanatory Notes:

1. This matrix of hourly rates for attorneys of varying experience levels and paralegals/law clerks has been prepared by the Civil Division of the United States Attorney's Office for the District of Columbia. The matrix is intended to be used in cases in which a "fee-shifting" statute permits the prevailing party to recover "reasonable" attorney's fees. See, e.g., 42 U.S.c. § 2000e-5(k) (Title VII of the 1964 Civil Rights Act); 5 U.S.c. § 552(a)(4)(E) (Freedom of Information Act); 28 U.S.c. § 2412 (b) (Equal Access to Justice Act). The matrix does not apply in caseS in which the hourly rate is limited by statute. See 28 U.S.c. § 2412(d).

2. This matrix is based on the hourly rates allowed by the District Court in Laffey v. Northwest Airlines, Inc., 572 F. Supp. 354 (D.D.C. 1983), affd in part, rev'd in part on other grounds, 746 F.2d 4 (D.C. Cir. 1984), cert. denied, 472 U.S. 1021 (1985). It is commonly referred to by attorneys and federal judges in the District of Columbia as the "Laffey Matrix" or the "United States Attorney's Office Matrix." The column headed "Experience" refers to the years following the attorney's graduation from law school. The various "brackets" are intended to correspond to "junior associates" (1-3 years after law school graduation), "senior associates" (4-7 years), "experienced federal court litigators" (8-10 and 11-19 years), and "very experienced federal court litigators" (20 years or more). See Laffey, 572 F. Supp. at 371.

3. The hourly rates approved by the District Court in Laffey were for work done principally in 1981-82. The Matrix begins with those rates. See Laffey, 572 F. Supp. at 371 (attorney rates) & 386 n.74 (paralegal and law clerk rate). The rates for subsequent yearly periods were determined by adding the change in the cost of living for the Washington, D.C. area to the applicable rate for the prior year, and then rounding to the nearest mUltiple of $5 (up if within $3 of the next multiple of $5). The result is subject to adjustment if appropriate to ensure that the relationship between the highest rate and the lower rates remains reasonably constant. Changes in the cost of living are measured by the Consumer Price Index for All Urban Consumers (CPI -U) for Washington­Baltimore, DC-MD-VA-WV, as announced by the Bureau of Labor Statistics for May of each year.

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Page 6: Washington Mutual (WMI) - Objection to Summary of Twenty-Seventh Monthly Application of Miller & Chevalier for Allowance of Compensation for Services Rendered and for Reimbursement

4. Use of an updated Laffey Matrix was implicitly endorsed by the Court of Appeals in Save Our Cumberland Mountains v. Hodel, 857 F.2d 1516, 1525 (D.C. Cir. 1988) (en bane). The Court of Appeals subsequently stated that parties may rely on the updated Laffey Matrix prepared by the United States Attorney's Office as evidence of prevailing market rates for litigation counsel in the Washington, D.C. area. See Covington v. District o/Columbia, 57 F.3d 1101, 1105 & n. 14, 1109 (D.C. Cir. 1995), cert. denied, 516 U.S. 1115 (1996). Lower federal courts in the District of Columbia have used this updated Laffey Matrix when determining whether fee awards under fee-shifting statutes are reasonable. See, e.g., Blackman v. District o/Columbia, 59 F. Supp. 2d 37, 43 (D.D.C. 1999); Jefferson v. Milvets System Technology, Inc., 986 F. Supp. 6, 11 (D.D.C. 1997); Ralph Hoar & Associates v. Nat'! Highway Transportation Safety Admin., 985 F. Supp. 1, 9-10 n.3 (D.D.C. 1997); Martini v. Fed. Nat'l Mtg Ass'n, 977 F. Supp. 482, 485 n.2 (D.D.C. 1997); Park v. Howard University, 881 F. Supp. 653, 654 (D.D.C. 1995).2

2 Source: United States Department of Justice

http://www.justice.gov/usao/dc/divisions/civil Laffey Matrix 2003-2012.pdf

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