Eric Maestas and Phyllis Maestas

1Of the total amount requested, $6,663.50 represents attorney and paralegal fees.
Velarde & Pierce has already received $1,320.00 as a retainer.
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UNITED STATES BANKRUPTCY COURT
DISTRICT OF NEW MEXICO
In re: 	ERIC I. MAESTAS and 	No. 13-07-11522 MF
PHYLLIS J. MAESTAS,
Debtors.
ORDER GRANTING, IN PART, and DENYING, IN PART
APPLICATION FOR ALLOWANCE AND PAYMENT OF COMPENSATION
AND REIMBURSEMENT OF EXPENSES AND COSTS
THIS MATTER is before the Court on the Application for Allowance and Payment of
Compensation and Reimbursement of Expenses and Costs (“Fee Application”) filed by counsel
for the Debtors, Velarde & Pierce. 	The Fee Application seeks approval of $7,237.24
representing fees, expenses, costs and gross receipts taxes. 1 The Court set a presentment hearing
on the Fee Application and took the matter under advisement. 	Upon review of the Fee
Application, the Court finds that some of the requested fees and expenses must be disallowed. In
reaching this determination, the Court FINDS:
1. Pursuant to 11 U.S.C. § 330(a)(4)(B),
In a chapter 12 or chapter 13 case in which the debtor is an individual, the court
may allow reasonable compensation to the debtor’s attorney for representing the
interests of the debtor in connection with the bankruptcy case based on a
consideration of the benefit and necessity of such services to the debtor and the
other factors set forth in this section.
11 U.S.C. § 330(a)(4)(B).
2. The Court has an independent duty to evaluate the reasonableness of fees, even when
no objections to an application for compensation have been filed. See In re Tahah, 330 B.R.
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777, 780-781 (10 th Cir. BAP 2005) (noting that “[i]t is well-established that bankruptcy courts
have a duty to independently evaluate the propriety of the compensation requested under §
330.”)(citation omitted).
3. Reasonableness is determined based upon such factors as the amount of time spent on
the service, the rate charged, and whether the services were necessary to the administration of
the bankruptcy estate. 11 U.S.C. § 330(a)(3). 	Compensation will not be allowed for
“unnecessary duplication of services”, for services that “were not reasonably likely to benefit the
estate” nor for services that are not “necessary to the administration of the case.” 11 U.S.C. §
330(a)(4)(A).
Similarly, when excessive time is billed for uncomplicated matters, the attorney is not entitled to
compensation for the total requested amount despite the fact that the work was actually done.
See In re Colorado-Ute Elec. Ass’n, Inc., 132 B.R. 174, 177 (Bankr.D.Colo. 1991) (“In applying
for fees, attorneys ‘should make a good-faith effort to exclude from a fee request hours that are
excessive, redundant, or otherwise unnecessary.’” (quoting Hensley v. Eckerhart, 461 U.S. 424,
434, 103 S.Ct. 1933, 1939-1940, 76 L.Ed.2d 40 (1983)). In re Reconversion Technologies, Inc.,
216 B.R. 46, 56 (Bankr.N.D.Okla. 1997) (In determining the amount of reasonable
compensation, the court “should disallow hours that were 'duplicative, unproductive, excessive,
or otherwise unnecessary.’” (quoting In re Shades of Beauty, Inc., 56 B.R. 946, 951
(Bankr.E.D.N.Y.1986) (citations omitted).
4. The fee applicant bears the burden of showing entitlement to the requested
compensation. See In re Recycling Industries, Inc., 243 B.R. 396, 402 (Bankr.D.Colo. 2000) (“It
is well settled that the burden of proof as to the reasonableness of compensation is on the fee
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applicant.”); In re Amdura Corp., 139 B.R. 963, 968 (Bankr.D.Colo. 1992).
5. 	After review of the itemized billing statement attached to the Fee Application, the
Court finds that some entries must be disallowed because they are not reasonable or necessary.
Specifically, the following entries are disallowed for the reasons stated:
Date 	Entry 	Time 	Amount 	Reason for Disallowance
5/21/07 	Review of client document
and preparation of petition,
draft of statements and
schedules, means test,
signature pages
1.5 	127.50 	Excessive; 1.0 at $85.00 per
hour will be allowed ($42.50
disallowed).
7/10/07 	review and revise plan re:
State of NM figures
.80 	$160.00 	Excessive; .5 at $200.00 per
hour will be allowed ($60.00
disallowed).
7/12/07 	Review latest proofs of
claim from NMTR, IRS,
new plan figures, claims
amounts, changes to Means
Test; revise statements and
schedules and approve for
filing of plan
.80 	$160.00 	Excessive; claims register
reflects that no amended
proofs of claim were filed by
New Mexico Taxation and
Revenue Department between
7/1/07 and 7/12/07; IRS did
not file its POC until 8/6/07;
.4 at $80.00 will be allowed
($80.00 disallowed)
7/24/07 	review request for notice
filed by Ecast
.1 	$20.00 	Unnecessary
8/9/07 	review of file, re: plan,
hearing, deadline,
objections, status
.2 	$40.00 	Unnecessary
8/24/07 	review of additional
amended POC from IRS
.2 	$40.00 	Duplicative of work
performed earlier that day
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2$6,663.50 less disallowed amount of $402.50.
3$6,261.00 + $77.50(taxable expenses) X .06875 = $435.77.
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8/31/07
telephone conference with
Jim Jacobsen re: NMTR
objection, POC, IRS issues,
approval of order of
confirmation, revise order re:
same (.5); Telephone
conferences with client re:
status (.3); telephone
conferences with trustee re:
confirmation issues,
revisions to order (.7) review
and revise affidavit of
confirmation and file with
court (.1)
1.6 	$320.00 	Excessive; 1.0 hours at
$200.00 will be allowed
($120.00 disallowed).
TOTAL DISALLOWED: 	$402.50
6. 	The Fee Application reflects total expenses in the amount of $108.19. Of this
amount, $30.69 represents postage costs. Gross receipts taxes were charged on the total
amount. Postage charges are actual, direct costs upon which it is not appropriate to charge gross
receipts taxes. Accordingly, $2.11, representing gross receipts tax at the rate of 6.875% on
$30.69 must be disallowed. 	Gross receipts taxes will be charged on the allowed fees plus
photocopy charges in the amount of $77.50.
WHEREFORE, IT IS HEREBY ORDERED, that the Fee Application is approved, in
part, and denied, in part. Total fees in the amount of $6,261.00 2 and costs in the amount of
$108.19 are allowed, plus applicable New Mexico gross receipts taxes in the amount of $435.773
(at the rate of 6.875% as reported on the Fee Application), less $1,320.00 which counsel has
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4$6,261.00 + 108.19 + $435.77 = $6,804.96 less $1,320.00 = $5,484.96.
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already received, leaving a balance of allowed fees and costs in the amount of $5,484.964 due
and compensable from the bankruptcy estate. The remainder of fees requested in the Fee
Application are disallowed.
_________________________________________
MARK B. McFEELEY
United States Bankruptcy Judge
COPY TO:
Chris W Pierce 	Kelley L. Skehen 	United States Trustee
Velarde & Pierce 	Chapter 13 Trustee 	PO Box 608
2531 Wyoming Blvd. NE 	625 Silver Ave. SW 	Albuquerque, NM 87103
Albuquerque, NM 87112 	Albuquerque, NM 87102
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