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Court Locations

6500 Cherrywood Ln - Greenbelt, MD 20770 - Main Tel: 301-344-8018 map
101 W Lombard St Room 8530 - Baltimore, MD 21201 - Main Tel: 410-962-2688

Chapter 11 Trustee filed an application for allowance of both trustee’s commission and compensation for counsel to the trustee. As to the trustee’s commission element, instead of seeking compensation based upon the commission schedule in Section 326, Trustee decided to seek compensation as if he were an attorney for all work performed, based upon the hourly rate he would normally charge for legal services. Trustee noted that the amount requested was substantially less than what his commission would have been if calculated under Section 326. Court held that 1) under Section 328, Trustee’s commission calculation must be performed separately and distinctly from an analysis of an award of attorney’s fees, 2) betterapproach would have been for Trustee to present an application for commission in an amount voluntarily reduced to the amount sought, without injecting calculation of his attorney’s fees for such work, and 3) as Trustee was not attempting to use hourly rate calculation to gain greater compensation than he would be entitled to under Section 326, the commission was reasonable and would be approved.

Robert A. Gordon