Here's the fourth interim bill [PDF] from SCO's lawyers, Berger Singerman, as text. It's the bill for December.
Like all the bills, it's an interim bill: "All fees and expenses paid are allowed on an interim basis until finally allowed by the Court." Our thanks go to Groklaw member kh for the text version.
***************************
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
|
In re: |
|
) |
Chapter 11 |
|
|
|
) |
|
|
The SCO GROUP, INC., et al.,1 |
) |
Case No. 07-11337 (KG) |
|
|
|
) |
(Jointly Administered) |
|
|
Debtors. |
) |
|
Objection Deadline: February 13, 2008 at 4:00 p.m, Prevailing Eastern Time
Hearing Date: Scheduled only if Necessary
FOURTH INTERIM APPLICATION OF BERGER SINGERMAN, P.A. FOR
COMPENSATION FOR SERVICES AND REIMBURSEMENT OF EXPENSES,
AS CO-COUNSEL TO THE DEBTORS IN POSSESSION FOR
THE PERIOD FROM DECEMBER 1, 2007 THROUGH DECEMBER 31, 2007
|
Name of Applicant: |
Berger Singerman, P.A. |
|
Authorized to Provide Professional Services to: |
Debtors in Possession |
|
Date of Retention: |
Effective September 14, 2007 by Order Entered October 4, 2007 |
|
Period for which Compensation and Reimbursement is Sought: |
December 1, 2007 through December 31, 2007 2 |
|
Amount of Compensation Sought as Actual, Reasonable and Necessary: |
$21,983.00 |
|
Amount of Expense Reimbursement Sought as Actual, Reasonable and Necessary: |
$159.85 |
This is a: X interim final application.
The time expended for fee application preparation is approximately 6 hours and the corresponding compensation will be requested in BSPA's next interim application.
1 The Debtors and the last four digits of each of the Debtors ' federal tax identification numbers are as follows:
(a) The SCO Group, Inc., a Delaware corporation, Fed. Tax Id. #2823; and (b) SCO Operations, Inc., a Delaware corporation, Fed. Tax ID. #7393.
2 This Application reserves the right to include any expended in the time period indicated above in future application(s) if it is not included herein.
PRIOR APPLICATIONS FILED
|
Date Filed |
Period Covered |
Requested Fees |
Requested Expenses |
Approved Fees |
Approved Expenses |
|
10/25/07 [D.N. 163] |
09/14/07 - 09/30/07 |
$65,331.00 |
$ 2,526.40 |
$ 52,264.80 |
$ 2,564.40 |
|
11/19/07 [D.N.224] |
10/01/07 - 10/31/07 |
$175,516.00 |
$5,177.33 |
$140,412.80 |
$ 5,177.33 |
|
12/28/07 [D.N.287] |
11/01/07 - 11/30/07 |
$296,323.25 |
$13,027.33 |
$237,058.60 |
$13,027.33 |
SUMMARY OF PROFESSIONAL AND PARAPROFESSIONAL TIME
PROFESSIONALS:
|
Name (Partner Or Associate)
|
Position of the Applicant, Number of Years in Position, Year of Obtaining License to Practice
|
Total Hours
|
Hourly Rate
|
Total Fee
|
|
Arthur J. Spector |
Partner since 2002. Member of NY Bar since 1975; Member of Mich. Bar since 1976; and Member of FL Bar since 2002. |
21.00 |
$450.00 |
$9,450.00 |
|
Franklin H. Caplan |
Partner since 1994. Member of FL Bar since 1988 |
.40 |
$425.00 |
$170.00 |
|
Grace E. Robson |
Associate since 2001. Member of NY since 1998; and Member of FL Bar since 1999. |
33.70 |
$325.00 |
10,952.50 |
|
Jessica Casciola |
Associate since 2007. Member of FL Bar since 2007. |
.30 |
$250.00 |
63.00 |
|
SUBTOTALS |
-
|
55.40 |
-
|
$20,635.50 |
2
PARAPROFESSIONALS:
|
Name of paraprofessional |
Position of the Applicant, Number of Years in Position, Year of Obtaining License to Practice |
Total Hours |
Hourly Rate |
Total Fee |
|
Carmen Cruz |
Paralegal; 8 years |
3.00 |
$160.00 |
$480.00 |
|
Michelle Albrecht |
Paralegal; 7 years |
5.00 |
$160.00 |
800.00 |
|
Marcia Newland |
Legal Assistant; 8 years |
.20 |
$75.00 |
15.00 |
|
Barbara Yglesia |
Legal Assistant; 1 year |
.70 |
$75.00 |
52.50 |
|
SUBTOTALS |
-
|
8.90 |
-
|
$1,347.50 |
TOTAL HOURS BY PROFESSIONALS AND PARAPROFESSIONALS: 64.30
"BLENDED" HOURLY RATE: $341.88
TOTAL PROFESSIONAL AND PARAPROFESSIONAL FEES: $21,983.00
COMPENSATION BY CATEGORY
| Project Categories |
Total Hours |
Total Fees |
| Case Administration (501) |
6.40 |
$2,040.00 |
|
Business Operations (502) |
1.40 |
$530.00 |
|
Asset Disposition/Preservation (505) |
1.80 |
$800.00 |
|
Fee/Employment Application (507) |
24.20 |
$7,117.50 |
|
Claims Administration and Objection (509) |
.20 |
$65.00 |
|
Executory Contracts and Unexpired Leases (512) |
4.90 |
$1,680.00 |
|
Employee BenefitslPensions (514) |
.40 |
$130.00 |
|
Settlement and Compromise (517) |
8.10 |
$3,520.00 |
|
Plan and Disclosure Statement (518) |
4.30 |
$1,625.50 |
|
Litigation Consulting (527) |
12.60 |
$4,475.00 |
|
TOTAL |
64.30 |
$21,983.00 |
3
EXPENSE SUMMARY
|
Expense Category
|
Total Expenses
|
|
Filing Fees
|
0.00 |
|
Process Service Fees
|
0.00 |
|
Witness Fees
|
0.00 |
|
Court Report & Transcripts
|
0.00 |
|
Lien and Title Searches
|
0.00 |
|
Photocopies (In-house copies @ 10¢ each)
|
$12.20 |
|
Postage
|
0.00 |
|
Overnight Delivery Charges
|
9.64 |
|
Outside Courier/Messenger Services
|
0.00 |
|
Long Distance Telephone Charges (Including Conference Calls)
|
$59.50 |
|
Long Distance Fax Transmissions (long distance charges only)
|
0.00 |
|
Computerized Research (Lexis, Westlaw and PACER charges)
|
$78.51 |
|
Travel Expenses (includes airfare and meals)
|
0.00 |
|
Other (Not specifically disallowed; must specify and justify)
|
0.00 |
|
TOTAL "GROSS" AMOUNT OF REQUESTED DISBURSEMENTS
|
$159.85 |
4
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
|
In Re:
|
) |
Chapter 11 |
|
The SCO GROUP, INC., et al., 3
|
) |
Case No. 07-11337 (KG) |
|
|
) |
(Jointly Administered) |
|
Debtors. |
) |
|
Objection Deadline: February 13, 2008 at 4:00 p.m. Prevailing Eastern Time
Hearing Date: Scheduled only if Necessary
FOURTH INTERIM APPLICATION OF BERGER SINGERMAN, P.A. FOR
COMPENSATION FOR SERVICES RENDERED AND REIMBURSEMENT OF
EXPENSES AS CO-COUNSEL TO THE DEBTORS IN POSSESSION FOR
THE PERIOD FROM DECEMBER 1, 2007 THROUGH DECEMBER 31, 2007
Pursuant to sections 330 and 331 of Title 11 of the United States Code (the "Bankruptcy
Code"), Rule 2016 of the Federal Rules of Bankruptcy Procedure (collectively, the "Bankruptcy
Rules"), and the Court's Administrative Order Establishing Procedures for Interim Monthly Compensation of Professionals, entered on or about October 4, 2007 (the "Administrative Order") (Docket No. 95), Berger Singerman, P.A. ("BSPA" or the "Firm"), co-counsel to the Debtors in Possession ("Debtors"), submits its fourth monthly application (the "Application") seeking compensation and reimbursement of expenses for the period of December 1, 2007 through December 31, 2007 (the "Application Period").
By this Application, BSPA requests an interim award of compensation in the amount of $21,983.00 and reimbursement of actual and necessary expenses in the amount of $159.85 for a total allowance of $22,142.85 and payment of $17,586.40 (80% of the allowed fees) and reimbursement of$159.85 (100% of the allowed expenses) for a total payment of $17,746.25 for the Application Period. In support of this Application, BSPA respectfully represents as follows:
3 The Debtors and the last four digits of each of the Debtors' federal tax identification numbers are as follows:
(a) The SCO Group, Inc., a Delaware corporation, Fed. Tax Id. #2823; and (b) SCO Operations, Inc., a Delaware corporation, Fed. Tax ID. #7393.
5
Background
1. On September 14, 2007 (the "Petition Date"), the Debtors commenced these cases (the "Chapter 11 Cases") by filing voluntary petitions for relief under chapter 11 of the Bankruptcy Code.
2. On or about October 4, 2007, the Court entered the Administrative Order, authorizing estate professionals ("Professionals") to submit monthly applications for interim compensation and reimbursement for expenses, pursuant to the procedures specified therein. The Administrative Order provides, among other things, that a Professional may submit monthly fee applications. If no objections are made within twenty (20) days after service of the monthly fee application the Professional may file a certificate of no objection, after which the Debtors are authorized to pay the Professional 80% of the requested fees and 100% of the requested expenses. Beginning with the period ending on December 31, 2007 and at three-month intervals, or such other intervals convenient to the Court, the Professional shall file and serve an interim application for allowance of the amounts sought in its monthly fee applications for that period. All fees and expenses paid are allowed on an interim basis until finally allowed by the Court.
3. The retention of BSPA, as co-counsel to the Debtors was approved effective as of the Petition Date by the Order Authorizing Employment of Berger Singerman, P.A., as Co-Counsel for Debtors Nunc Pro Tunc to the Petition Date, entered on October 4, 2007 (the "Retention Order") (Docket No. 97). The Retention Order authorized BSPA to be compensated on an hourly basis and to be reimbursed for actual and necessary out-of-pocket expenses.
6
BSPA'S APPLICATION FOR COMPENSATION AND
FOR REIMBURSEMENT OF EXPENSES
Compensation Paid And Its Source
4. All services for which BSPA requests compensation were performed for or on behalf of the Debtors.
5.
BSPA has received no payment and no promises for payment from any source for services rendered or to be rendered in any capacity whatsoever in connection with the matters covered by this Application. There is no agreement or understanding between BSPA and any other person other than the partners of BSPA for the sharing of compensation to be received for services rendered in this case. BSPA has received payments during the year prior to the Petition Date in the amount of $425,000 from the Debtors in connection with its prepetition representation of the Debtors. Such amount includes a retainer for postpetition services in the amount of $275,000. BSPA was current as of the Petition Date, subject to a final reconciliation of the amount actually expended prepetition. Upon final reconciliation of the amount actually expended prepetition, any balance remaining from the payments to the Firm was credited to the Debtors and utilized as BSPA's retainer to apply to postpetition fees and expenses pursuant to the compensation procedures approved by this Court and the Bankruptcy Code.
Fee Statements
6.
The fee statements for the Application Period are attached hereto as Exhibit A. These statements contain daily time logs describing the time spent by each attorney and paraprofessional during the Application Period. To the best of BSPA's knowledge and belief, this Application complies with sections 330 and 331 of the Bankruptcy Code, the Bankruptcy Rules and the Administrative Order. BSPA's time reports are initially either handwritten or directly entered into the Firm's timekeeping program by the attorney or paralegal performing the
7
described services. The time reports are organized on a daily basis. BSPA is particularly
sensitive to issues of "lumping" and, unless time was spent in one time frame on
a variety of different matters for a particular client, separate time entries are set forth
in the time reports. BSPA's charges its clients for professional services on an hourly basis, which hourly rates are customary and comparable for professionals and paraprofessionals in bankruptcy and non-bankruptcy matters. In accordance with Del. Bankr. L. R. 2016-2(d)(viii), BSPA has reduced its charges related to any non-working "travel time" to 50% ofBSPA's standard hourly rate. To the extent it is feasible, BSPA professionals attempt to work during travel.
Actual and Necessary Expenses
7. A summary of actual and necessary expenses incurred by BSPA for the Application Period is attached hereto as part of Exhibit A. Consistent with Del. Bankr. L. R. 2016-2(e)(iii), BSPA has charged $0.10 per page for photocopying expenses related to these cases. BSPA's photocopying machines automatically record the number of copies made when the person that is doing the copying enters the client's account number into a device attached to the photocopier. BSPA summarizes each client's photocopying charges on a daily basis.
8. BSPA charges $1.00 per page for outgoing facsimile transmissions. There is no additional charge for long distance telephone calls on faxes. The charge for outgoing facsimile transmissions reflects BSPA's calculation of the actual costs incurred by BSPA for the machines, supplies and extra labor expenses associated with sending telecopies and is reasonable in relation to the amount charged by outside vendors who provide similar services. BSPA does not charge the Debtors for the receipt of faxes.
9. With respect to providers of on-line legal research services (e.g., LEXIS and WESTLAW), BSPA charges the standard usage rates these providers charge for computerized legal research. BSPA bills its clients the actual amounts charged by such services.
8
10. BSPA believes the foregoing rates are at or below the market rates that the
majority of law firms charge clients for such services. In addition, BSPA
believes that such charges are in accordance with the American Bar
Association's ("ABA") guidelines, as set forth in the ABA's Statement
of Principles, dated January 12, 1995, regarding billing for disbursements and other charges.
Summary of Services Rendered
11. The names of the partners and associates of BSPA who have rendered professional services in these cases during the Application Period, and the paralegals and case management assistants of BSPA who provided services to these attorneys during the Application Period, are set forth in the attached Exhibit A.
12. BSPA, by and through such persons, has prepared and assisted in the preparation of various motions and orders submitted to the Court for consideration, advised the Debtors on a regular basis with respect to various matters in connection with the Debtors' bankruptcy cases, and performed all necessary professional services which are described and narrated in detail below. BSPA's efforts have been extensive due to the size and complexity of the Debtors' bankruptcy cases.
Summary of Services by Project
13. The services rendered by BSPA during the Application Period can be grouped
into the categories set forth below. BSPA attempted to place the services
provided in the category that best relates to such services. However, because
certain services may relate to one or more categories, services pertaining to
one category may in fact be included in another category. These services
performed, by categories, are generally described below, with a more detailed
identification of the actual services provided set forth on the attached
Exhibit A. Exhibit A identifies the attorneys and
paraprofessionals who rendered services relating to each
9
category, along with
the number of hours for each individual and the total compensation sought for
each category.
A. Case Administration (501)
14. During the Application Period, the Firm, among other things: (1) assisted and counseled the Debtors with regard to matters concerning all aspects of the administration of the Chapter 11 cases; (2) prepared and reviewed agendas, pleadings and legal papers relating to scheduled hearings; and (3) worked closely with the Debtors' management and their advisors to ensure that the case administration proceeded efficiently.
Fees: $2,040.00; Hours: 6.40
B. Business Operations (502)
15. During the Application Period, the Firm, among other things, assisted and counseled the Debtors with respect to ordinary course payments to employees and vendors, as well as requests for information from the Debtors' insurance carrier. In addition, the Firm counseled the Debtors with respect to the sale of a patent (previously the subject of a motion to approve incipient controversy) as well as general business matters.
Fees: $530.00; Hours: 1.40
C. Asset Disposition/Preservation (505)
16. During the Application Period, the Firm, among other things, attended to the remaining issues relating to efforts to sell the Debtors' UNIX business to York Capital Management.
Fees: $800.00; Hours: 1.80
D. Fee/Employment Applications (507)
This category includes work related to the fee applications of professionals. During the Application Period, the Firm, among other things: (1) prepared and revised applications,
10
declarations and orders with respect to the retention of: (a) CFO Solutions; (b) German counsel; and Tanner; (2) conducted conference with co-counsel regarding retention of ordinary course professionals and expansion of same; (3) analyzed invoices in preparation of BSPA's third interim fee application; and (4) prepared the third interim fee application of BSPA as well as assisted the drafting of the first and second interim fee application of Tanner, LC, the Debtors' accountants.
Fees: $7,117.50; Hours: 24.20
E. Claims Administration and Objection (509)
17. During the Application Period, the Firm communicated with the Debtors with respect to the claim of Sun Microsystems, Inc.
Fees: $65.00; Hours: .20
F. Executory Contracts and Unexpired Leases (512)
18. During the Application Period, the Firm, among other things, (1) conducted conferences with Debtors regarding the assumption and/or rejection of unexpired leases; (2) drafted and finalized the motion seeking approval to assume the New Jersey and Utah leases, as amended; and (3) reviewed the objection to the motion to approve the assumption of the leases filed by Novell.
Fees: $1,680.00; Hours: 4.90
G. Employee Benefits/Pensions (514)
19. During the Application Period, the Firm reviewed communicated with co-counsel regarding the Debtors' fourth quarter employee bonuses.
Fees: $130.00; Hours: .40
H. Settlement and Compromise (517)
11
20. During the Application Period, the Firm, among other things, (1) communicated with the Debtors and objecting parties regarding the settlement with Cattleback; (2) conducted various conferences relating to the testimony being proffered in court with respect to the settlement with Cattleback; and (3) reviewed objections filed to the settlement with Cattleback.
Fees: $3,520.00; Hours: 8.10
I. Plan and Disclosure Statement (518)
21. During the Application Period, the Firm, among other things , (1) communicated with the Debtors relating to plan issues; (2) drafted and finalized motion seeking an extension of the Debtors' exclusive period to file and solicit acceptances to a plan; and (3) discussed various research issues to be conducted relating to plan formation.
Fees: $1,625.50; Hours: 4.30
J. Litigation Consulting (527)
22. During the Application Period, the Firm, among other things, (1) communicated various times with counsel and discussed the possible removal and transfer of litigation; (2) began drafting a notice of removal; and (3) conducted research in connection with the possible removal or transfer oflitigation.
Fees: $4,475.00; Hours: 12.60
Valuation of Services
23. Attorneys and paraprofessionals of BSPA expended a total 64.30 hours in
connection with their representation of the Debtors during the Application Period, summarized as follows:
12
SUMMARY OF PROFESSIONAL AND PARAPROFESSIONAL TIME
PROFESSIONALS:
|
Name (Partner Or Associate) |
Position of the Applicant, Number of Years in Position, Year of Obtaining License to Practice |
Total Hours |
Hourly Rate |
Total Fee |
|
Arthur J. Spector |
Partner since 2002. Member of NY Bar since 1975; Member of Mich. Bar since 1976; and Member of FL Bar since 2002. |
21.00 |
$450.00 |
$9,450.00 |
|
Franklin H. Caplan |
Partner since 1994. Member of FL Bar since 1988 |
.40 |
$425.00 |
170.00 |
|
Grace E. Robson |
Associate since 2001. Member of NY since 1998; and Member of FL Bar since 1999. |
33.70 |
$325.00 |
10,952.50 |
|
Jessica Casciola |
Associate since 2007. Member of FL Bar since 2007. |
.30 |
$250.00 |
63.00 |
| SUBTOTALS |
- |
55.40 |
- |
$20,635.50 |
PARAPROFESSIONALS:
|
Name of paraprofessional |
Position of the Applicant, Number of Years in Position, Year of Obtaining License to Practice |
Total Hours |
Hourly Rate |
Total Fee |
|
Carmen Cruz |
Paralegal; 8 years |
3.00 |
$160.00 |
$ 480.00 |
|
Michelle Albrecht |
Paralegal; 7 years |
5.00 |
$160.00 |
800.00 |
|
Marcia Newland |
Legal Assistant; 8 years |
.20 |
$75.00 |
15.00 |
|
Barbara Yglesia |
Legal Assistant; 1 year |
.70 |
$75.00 |
52.50 |
| SUBTOTALS |
- |
8.90 |
- |
$1,347.50 |
TOTAL HOURS BY PROFESSIONALS AND PARAPROFESSIONALS: 64.30
"BLENDED" HOURLY RATE: $341.88
TOTAL PROFESSIONAL AND PARAPROFESSIONAL FEES: $21,983.00
13
24. The nature of work performed by these persons is fully set forth in Exhibit A attached hereto. These are BSPA's normal hourly rates. The reasonable value of the services rendered by BSPA for the Debtors during the Application Period is $21,983.00.
25. In accordance with the factors enumerated in section 330 ofthe Bankruptcy Code, it is respectfully submitted that the amount requested by BSPA is fair and reasonable given
(a) the complexity of the case, (b) the time expended, (c) the nature and extent of the services rendered, (d) the value of such services, and (e) the costs of comparable services other than in a case under the Bankruptcy Code. Moreover, BSPA has reviewed the requirements of Del. Bankr. L. R. 2016-2 and the Administrative Order and believes that this Application complies with such Rule and Order.
WHEREFORE, BSPA respectfully requests that, for the period December 1, 2007 through December 31, 2007, an interim be made to BSPA for compensation in the amount of $21,983.00 and actual and necessary expenses in the amount of $159.85 for a total allowance of $22,142.85 and payment of $17,586.40 (80% of allowed fees) and reimbursement of $159.85 (100% of the allowed expenses) be authorized for a total payment of $17,746.25 and for such other and further relief as this Court may deem just and proper. Dated: January 24, 2008
BERGER SINGERMAN, P.A.
[signature: Grace E. Robson]
Arthur . Spector
Grace E. Robson
[address, telephone, fax, email]
Co-Counsel for the Debtors-in-Possession
14
VERIFICATION
STATE OF FLORIDA
COUNTY OF BROWARD
Grace E. Robson, after being duly sworn according to law, deposes and says:
a) I am an associate of the applicant law firm Berger Singerman, P.A. ("BSPA"), and have been admitted to appear before this Court.
b) I am familiar with the legal services rendered by BSPA as counsel to the Debtors and thoroughly familiar with the other work performed on behalf of the Debtors by the lawyers and paraprofessionals of BSPA.
c) I have reviewed the foregoing Application and the facts set forth therein are true and correct to the best of my knowledge, information and belief. Moreover, I have reviewed the Local Bankruptcy Rules for the District of Delaware, and submit that the Application substantially complies with such rules.
[signature: Grace E. Robson]
Grace E. Robson
SWORN AND SUBSCRIBED
before me this 24th day of 2008.
[signature of Notary]
Notary Public
My Commission Expires:
15
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