In re Griffin
UNPUBLISHED
See 373.pdf
The court previously approved the employment of special counsel to debtor on a contingency fee basis. This matter came before the court for final approval of an application for fees and expenses from special counsel. The court found that the underlying contingency fee agreement between the applicant and the debtor was inconsistent with California law, and was therefore void. In light of the circumstances of the case, including the applicant's manipulation of the settlement amount to increase the amount of the contingency fee, the court further found that the original approval of the contingency fee agreement was improvidently granted. Due to these developments, the court determined that compensation would not be allowed under the terms of the contingency fee agreement. The court found, however, that applicant was entitled to a reasonable fee under California law. To calculate a reasonable fee, the court applied a lodestar rate of $160/hour, after making percentage reductions in hours for travel time, insufficient time entries, ineffective representation, and manipulation of the settlement.