Final Application by CrystalCox

VIEWS: 22 PAGES: 8

									 1                                                                         Hon. Karen A. Overstreet
                                                                     Chapter: 7 (converted from 11)
 2                                                 Hearing Location: Seattle Courthouse, Room 7206
                                                            Hearing Date: March 18, 2011, 9:30 a.m.
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                                                                     Response Date: March 11, 2011
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 8                             UNITED STATES BANKRUPTCY COURT
                            FOR THE WESTERN DISTRICT OF WASHINGTON
 9
                                          AT SEATTLE
10

11   In re:                                            NO. 09-20780-KAO
12   THE CASCADIA PROJECT LLC,                         FINAL APPLICATION FOR
13                                                     COMPENSATION AND
                              Debtor.                  REIMBURSEMENT OF EXPENSES OF
14                                                     COMMITTEE COUNSEL CAIRNCROSS &
                                                       HEMPELMANN, P.S.
15

16

17            Cairncross & Hempelmann, P.S. (“Cairncross”), counsel of record for the Official
18   Committee of Unsecured Creditors herein (the “Committee”), submits this application (the
19   “Application”) for compensation and reimbursement of fees and expenses earned and incurred
20   by Cairncross in the course of its representation of the Committee from February 1, 2010 through
21   March 18, 2011. Compensation and reimbursement of Cairncross for such fees and expenses is
22   authorized and appropriate pursuant to 11 U.S.C. § 331, in accordance with 11 U.S.C. §§ 330
23   and 1103, Federal Rules of Bankruptcy Procedure 2002(a)(6) and 2016(a), and Local Bankruptcy
24   Rule 2016-1.        In submitting this Application, Cairncross has attempted to conform to the
25   Guidelines for Reviewing Applications for Compensation & Reimbursement of Expenses Filed
26   Under 11 U.S.C. § 330 (Appendix A to 28 C.F.R. § 58).


     FINAL APPLICATION FOR COMPENSATION AND                         Cairncross & Hempelmann, P.S.
     REIMBURSEMENT OF EXPENSES OF COMMITTEE COUNSEL                 Law Offices
     CAIRNCROSS & HEMPELMANN, P.S. - 1                              524 Second Avenue, Suite 500
                                                                    Seattle, Washington 98104-2323
                                                                    Phone: 206-587-0700  Fax: 206-587-2308
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 1                                           I.       APPLICATION

 2            A.         The Cascadia Project LLC (the “Debtor”) filed its voluntary petition for relief

 3   under Chapter 11 of the United States Bankruptcy Code (the “Code”) on October 15, 2009 (the

 4   “Petition Date”). On October 29, 2009, the United States Trustee appointed the Committee

 5   (Dkt. #15). On November 24, 2010, the Court entered an order converting the Debtor’s case

 6   from a case under Chapter 11 of the Code to a case under Chapter 7 of the Code (Dkt. #603).

 7   The amounts of estate funds received and disbursed and cash on hand or on deposit and the

 8   amount and nature of unpaid administrative expenses of the estate are unknown to Cairncross

 9   and are not reasonably ascertainable. Cairncross likewise does not know when this case is

10   expected to close and such information is not reasonably ascertainable.

11            B.         Date of Entry of Order Approving Applicant’s Employment. On November

12   16, 2009, the Committee submitted an application for authorization to employ Cairncross as

13   counsel in this case (Dkt. #50). On November 18, 2009, the Court entered an order approving

14   the Committee’s employment of Cairncross as counsel (Dkt. #60) (the “Employment Order”).

15   Cairncross’s employment and compensation in this case are governed by §§ 330 and 1103 of the

16   Code. The only terms and conditions of Cairncross’s employment set forth in the Employment

17   Order are that it be compensated at its standard hourly rates from the assets of the estate as

18   authorized by the Court in accordance with 11 U.S.C. §§ 328, 329, 330, and 331.

19            C.         Compensation and Reimbursement of Expenses Previously Allowed.                           On

20   February 23, 2010, Cairncross submitted an interim application for compensation and

21   reimbursement of expenses in this case, requesting compensation in the total amount of

22   $44,204.00 and reimbursement for expenses totaling $261.51 (Dkt. #204). On March 23, 2010,

23   the court entered an order awarding Cairncross the full amount of compensation and

24   reimbursement requested (Dkt. #240). On April 1, 2010, Cairncross received a payment in the

25   amount of $22,852.35. On June 15, 2010, Cairncross received a payment of $21,613.16. No

26   allowed fees or expenses remain unpaid.


     FINAL APPLICATION FOR COMPENSATION AND                             Cairncross & Hempelmann, P.S.
     REIMBURSEMENT OF EXPENSES OF COMMITTEE COUNSEL                     Law Offices
     CAIRNCROSS & HEMPELMANN, P.S. - 2                                  524 Second Avenue, Suite 500
                                                                        Seattle, Washington 98104-2323
                                                                        Phone: 206-587-0700  Fax: 206-587-2308
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 1            D.         Source of Payment for Requested Compensation.

 2            Pursuant to the Employment Order, the proposed source of payment for the requested

 3   compensation and reimbursement is the assets of the estate as authorized by the Court in

 4   accordance with 11 U.S.C. §§ 328, 329, 330, and 331.

 5            E.         Amount of Unencumbered Funds in Estate.

 6            The amount of unencumbered funds in the estate is presently unknown to Cairncross and

 7   is not reasonably ascertainable.

 8            F.         Narrative Summary of Services Provided.

 9            The following is a summary of services provided by Cairncross since February 1, 2010:

10                       1.    Asset Analysis and Recovery (011229-0003). Cairncross attorneys spent

11   a total of 21.3 hours and earned fees totaling $6,271.50 from June 10, 2010 through June 16,

12   2010 related to asset analysis and recovery in this case. Services provided by Cairncross

13   attorneys related to asset analysis and recovery included reviewing and evaluating pleadings filed

14   related to 2004 examinations and discovery issues, attending hearings related to such discovery

15   issues, exchanging correspondence and participating in conferences with counsel for interested

16   parties regarding discovery, and attending depositions.       Attorneys who performed services

17   related to asset analysis and recovery included John R. Rizzardi (1.4 hours; $637.00), Anna E.

18   Revelle (11.0 hours; $2,475.00), and Deirdre Glynn Levin (8.9 hours; $3,159.50).

19                       2.    Case Administration (011229-0006). Cairncross attorneys spent a total

20   of 17.4 hours and earned fees totaling $4,522.50 from February 22, 2010 through November 18,

21   2010 related to case administration. Services provided by Cairncross attorneys related to the

22   plan included exchanging correspondence and participating in conferences with counsel for

23   interested parties regarding the status of the case and proposed strategies for resolution of the

24   case, analysis of the law governing conversion of the case to a Chapter 7 case, and drafting

25   pleadings to convert the case from a Chapter 11 case to a Chapter 7 case. Attorneys who

26   performed services related to case administration included John R. Rizzardi (0.6 hours; $273.00),


     FINAL APPLICATION FOR COMPENSATION AND                          Cairncross & Hempelmann, P.S.
     REIMBURSEMENT OF EXPENSES OF COMMITTEE COUNSEL                  Law Offices
     CAIRNCROSS & HEMPELMANN, P.S. - 3                               524 Second Avenue, Suite 500
                                                                     Seattle, Washington 98104-2323
                                                                     Phone: 206-587-0700  Fax: 206-587-2308
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 1   Anna E. Revelle (1.8 hours; $405.00), Andrew J. Liese (14.1 hours; $3,525.00), and Deirdre

 2   Glynn Levin (0.9 hours; $319.50).

 3                       3.   Claims Administration (011229-0007).         Cairncross attorneys spent a

 4   total of 6.1 hours and earned fees totaling $1,535.50 from February 21, 2010 through June 14,

 5   2010 related to claims administration in this case. Services provided by Cairncross attorneys

 6   related to claims administration included exchanging correspondence and participating in

 7   conferences with counsel for other interested to parties, reviewing and evaluating claims asserted

 8   against the debtor’s estate, and analysis of law governing a claimant’s right to assert a claim.

 9   Attorneys who performed services related to claims administration included John R. Rizzardi

10   (0.5 hours; $227.50), Anna E. Revelle (5.1 hours; $1,130.50), and Deirdre Glynn Levin (0.5

11   hours; $177.50).

12                       4.   Fee Applications (011229-0009). Cairncross attorneys spent a total of

13   15.9 hours and earned fees totaling $4,219.00 from February 17, 2010 through February 15,

14   2011 related to fee applications in this case. Services provided by Cairncross attorneys related to

15   fee applications included the compilation and review of invoices for services, drafting the fee

16   applications, and attending hearings on the applications. Attorneys who performed services

17   related to fee applications included John R. Rizzardi (1.6 hours; $728.00), Anna E. Revelle (3.0

18   hours; $645.00), Andrew J. Liese (11.1 hours; $2,775.00), and Deirdre Glynn Levin (.2 hours;

19   $71.00).     Cairncross anticipates that its attorneys will spend additional compensable time

20   attending the hearing on this fee application and responding to any objections to this fee

21   application. Cairncross will provide the Court with updated billable hours and total requested

22   compensation figures for its services related to fee applications at the hearing on this application.

23                       5.   Financing (011229-0010).     Cairncross attorneys spent a total of 17.8

24   hours and earned fees totaling $6,027.00 from February 13, 2010 through June 30, 2010 related

25   to the financing of the debtor’s bankruptcy case. Services provided by Cairncross attorneys

26   related to the financing of the case included exchanging correspondence and participating in


     FINAL APPLICATION FOR COMPENSATION AND                            Cairncross & Hempelmann, P.S.
     REIMBURSEMENT OF EXPENSES OF COMMITTEE COUNSEL                    Law Offices
     CAIRNCROSS & HEMPELMANN, P.S. - 4                                 524 Second Avenue, Suite 500
                                                                       Seattle, Washington 98104-2323
                                                                       Phone: 206-587-0700  Fax: 206-587-2308
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 1   conferences with counsel and consultants for other interested parties, evaluating the debtor’s

 2   proposed post-petition financing and budget, analyzing pleadings opposing or supporting the

 3   debtor’s post-petition financing, attending hearings related to the debtor’s proposed post-petition

 4   financing, and reviewing the debtor’s monthly financial reports. Attorneys who performed

 5   services related to financing included John R. Rizzardi (9.0 hours; $4,095.00), Anna E. Revelle

 6   (8.4 hours; $1,826.00), and Jeremie Lipton (0.4 hours; $106.00).

 7                       6.   Fee/Employment Objections (011229-0011). Cairncross attorneys spent

 8   a total of 15.3 hours and earned fees totaling $4,477.50 from March 4, 2010 through July 13,

 9   2010 related to objections to the compensation or employment of professionals in this case.

10   Services provided by Cairncross attorneys related to such objections included reviewing and

11   evaluating motions by the debtor to employ various professionals, exchanging correspondence

12   and participating in conferences with the Court and counsel for other interested parties regarding

13   the debtor’s engagement of such professionals, reviewing and evaluating fee applications

14   submitted by the debtor’s counsel and other professionals employed by the debtor, and attending

15   hearings on such applications. Attorneys who performed services related to objections to fee

16   applications and the employment of professionals by the debtor included John R. Rizzardi (1.9

17   hours; $864.50), Anna E. Revelle (8.4 hours; $1,838.00), and Deirdre Glynn Levin (5.0 hours;

18   $1,775.00).

19                       7.   Meetings of Creditors (011229-0013). Cairncross attorneys spent a total

20   of 13.3 hours and earned fees totaling $3,615.50 from February 4, 2010 through August 19, 2010

21   related to meetings of creditors. As counsel for the Committee, Cairncross prepared for and

22   participated in various conferences with the Committee and made periodic reports to the

23   Committee regarding the status of the case.       Attorneys who performed services related to

24   meetings of creditors included John R. Rizzardi (3.0 hours; $1,365.00) and Anna E. Revelle

25   (10.3 hours; $2,250.50).

26


     FINAL APPLICATION FOR COMPENSATION AND                          Cairncross & Hempelmann, P.S.
     REIMBURSEMENT OF EXPENSES OF COMMITTEE COUNSEL                  Law Offices
     CAIRNCROSS & HEMPELMANN, P.S. - 5                               524 Second Avenue, Suite 500
                                                                     Seattle, Washington 98104-2323
                                                                     Phone: 206-587-0700  Fax: 206-587-2308
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 1                       8.    Reorganization Plan (011229-0014). Cairncross attorneys spent a total

 2   of 116.2 hours and earned fees totaling $46,370.00 from February 3, 2010 through September

 3   22, 2010 related to the development of a confirmable Chapter 11 reorganization plan for the

 4   debtor in this case. Services provided by Cairncross attorneys related to the plan included

 5   participating in conferences with attorneys and consultants for other interested parties, preparing

 6   for and attending hearings on motions related to the extension of the exclusivity period, analysis

 7   of the availability of tax exemptions for sales pursuant to a confirmed plan, and evaluating and

 8   responding to motions related to the plan. Attorneys and paralegals who performed services

 9   related to the reorganization plan included John R. Rizzardi (89.8 hours; $40,859.00), Matt B.

10   Hanna (4.3 hours; $1,290.00), Anna E. Revelle (10.4 hours; $2,285.00), Yousef Arefi-Afshar

11   (0.5 hours; $112.50), Deirdre Glynn Levin (0.7 hours; $248.50), and Jessica C. Tsao (10.5 hours;

12   $1,575.00).

13                       9.    Relief from Stay Proceedings (011229-0015). Cairncross attorneys spent

14   a total of 33.5 hours and earned fees totaling $9,388.50 from April 1, 2010 through September 3,

15   2010 related to relief from stay proceedings in this case. Services provided by Cairncross

16   attorneys related to relief from stay proceedings included reviewing and evaluating pleadings

17   filed on behalf of the debtor’s creditors seeking relief from the automatic stay in this case,

18   exchanging correspondence and participating in conferences with counsel for interested parties

19   related to motions for relief from stay, drafting pleadings responding to motions seeking relief

20   from stay, and attending hearings on such motions. Attorneys who performed services related to

21   relief from stay proceedings included John R. Rizzardi (5.9 hours; $2,684.50), Anna E. Revelle

22   (23.5 hours; $5,248.50), and Deirdre Glynn Levin (4.1 hours; $1,455.50).

23                       10.   Real Estate Excise Tax Issues (011229-0016).          Cairncross attorneys

24   spent a total of 8.7 hours and earned fees totaling $2,223.50 from April 2, 2010 through April 12,

25   2010 related to real estate excise tax issues in this case. Services provided by Cairncross

26   attorneys related to real estate excise tax issues included analysis of the potential for an


     FINAL APPLICATION FOR COMPENSATION AND                          Cairncross & Hempelmann, P.S.
     REIMBURSEMENT OF EXPENSES OF COMMITTEE COUNSEL                  Law Offices
     CAIRNCROSS & HEMPELMANN, P.S. - 6                               524 Second Avenue, Suite 500
                                                                     Seattle, Washington 98104-2323
                                                                     Phone: 206-587-0700  Fax: 206-587-2308
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 1   exemption from the tax under the debtor’s proposed reorganization plan, including analysis of

 2   existing and pending legislation and administrative regulations affecting the calculation and

 3   imposition of the tax, and drafting memoranda and correspondence and attending conferences

 4   related to such analysis. Attorneys who performed services related to real estate excise tax issues

 5   included Matt B. Hanna (1.8 hours; $540.00), Anna E. Revelle (2.9 hours; $623.50); and Jeremie

 6   Lipton (4.0 hours, $1,060.00).

 7            G.         Summary of Time Record of Services.

 8                        Timekeeper              Hourly Rate     Hours        Fees
                          John R. Rizzardi              $455.00     113.7        $51,733.50
 9                        Anna E. Revelle               $225.00      84.8        $18,727.00
10                        Matt B. Hanna                 $300.00       6.1         $1,830.00
                          Jeremie Lipton                $265.00       4.4         $1,166.00
11                        Yousef Arefi-Afshar           $225.00       0.5           $112.50
                          Deirdre Glynn Levin           $355.00      20.3           $7,206.50
12
                          Jessica C. Tsao               $150.00      10.5           $1,575.00
13                        Andrew J. Liese               $250.00      25.2           $6,300.00
                          TOTAL                                     265.5          $88,650.50
14

15   As required by Local Rule 2016-1(a)(6), an itemized time record of services for which an award

16   of compensation is sought is attached to the declaration of John R. Rizzardi in support of this

17   motion as Exhibit A. The itemized time record of services included as Exhibit A is divided into

18   general categories according to the nature of the tasks performed, with the total hours, fees, and

19   expenses broken down for each category, as required by Local Rule 2016-1(d). The proposed

20   compensation is based on the customary compensation charged by comparably skilled

21   practitioners both in cases governed by the Code and in cases not governed by the Code.

22            H.         Statement of Expenses.

23                                           Category                       Amount
                              Client meals                                    $13.51
24                            Document preparation                            $25.00
25                            Legal research                                 $842.49
                              Miscellaneous                                   $26.00
26                            Postage expense                                $169.92
                              Photocopy expense                              $368.10

     FINAL APPLICATION FOR COMPENSATION AND                               Cairncross & Hempelmann, P.S.
     REIMBURSEMENT OF EXPENSES OF COMMITTEE COUNSEL                       Law Offices
     CAIRNCROSS & HEMPELMANN, P.S. - 7                                    524 Second Avenue, Suite 500
                                                                          Seattle, Washington 98104-2323
                                                                          Phone: 206-587-0700  Fax: 206-587-2308
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 1                                                 Category                            Amount
                                Telephone expense                                        $74.47
 2                              Travel expense                                           $30.27
 3                              TOTAL                                                 $1,549.76

 4   All expenses for which reimbursement is sought by this application are actual and necessary and
 5   supported by documentation as appropriate.
 6                                                 II.      CONCLUSION
 7            Cairncross respectfully requests that the Court grant its final application for
 8   compensation and reimbursement of expenses earned and incurred from February 3, 2010
 9   through February 15, 2011, which together total $90,200.261 to date. The Summary Sheet
10   required by paragraph (b)(3) of the Guidelines for Reviewing Applications for Compensation &
11   Reimbursement of Expenses filed under 11 U.S.C. § 330 is attached to the declaration of John R.
12   Rizzardi in support of this motion as Exhibit B.
13            DATED this 18th day of February, 2011.

14                                                            CAIRNCROSS & HEMPELMANN, P.S.
15

16                                                            /s/ John R. Rizzardi
                                                              John R. Rizzardi, WSBA No. 9388
17
                                                              Andrew J. Liese, WSBA No. 38313
18                                                            Attorneys for the Official Committee of Unsecured
                                                              Creditors
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     1
25     This total will likely increase as Cairncross anticipates that it will spend additional time related to the preparation
     of fee applications in this matter, including attending the hearing on this fee application and responding to any
26   objections to the application. Cairncross will provide the Court with an updated invoice for its legal services
     relating to fee applications at the time of the hearing on this application.


     FINAL APPLICATION FOR COMPENSATION AND                                          Cairncross & Hempelmann, P.S.
     REIMBURSEMENT OF EXPENSES OF COMMITTEE COUNSEL                                  Law Offices
     CAIRNCROSS & HEMPELMANN, P.S. - 8                                               524 Second Avenue, Suite 500
                                                                                     Seattle, Washington 98104-2323
                                                                                     Phone: 206-587-0700  Fax: 206-587-2308
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