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More objections to Fund counsel’s demand for $750,937.82
The CNMI government, the Commonwealth Ports Authority, and two members of the Official Committee of Unsecured Creditors have raised objections to the $750,937.82 in payment being asked by the Boston-based law firm that represented the NMI Retirement Fund in its failed bankruptcy petition.
The Boston-based Brown Rudnick law firm is claiming that the Fund owes it $704,293.50 as compensation for services and $46,644.32 as reimbursement for related expenses, for a total of $750,937.82.
Assistant attorney general Teresita J. Sablan, counsel for the CNMI government, asked the U.S. District Court for the NMI Bankruptcy Division to reduce Brown Rudnick’s compensation and reimbursement by 85 percent-$112,640.67 instead of $750,937.823.
Sablan offered some changes to the law firm’s application for compensation if the court is not inclined to make the blanket 85-percent reduction.
CPA, through counsel Robert T. Torres, also joined the CNMI government’s objections.
Torres said the government’s objections are based on the grounds that the bulk of the services rendered were not beneficial or necessary at the time when they were rendered, that the services and expenses claimed were unreasonable given the amount of time spent, and that the law firm did not exercise reasonable billing judgment.
Among the services questioned is the amount of time spent and expenses incurred in peripheral matters such as the preparation of voluminous pleadings and documents in removal and adversary proceedings.
Torres said CPA agrees with the CNMI government in objecting to Brown Rudnick’s compensation request for looking into legislative and government matters and for other non-essential services.
“All of the foregoing were not necessary at the time that they were rendered,” Torres added.
Don Jeffrey Gelber, the Hawaii-based counsel for the Official Committee of Unsecured Creditors, informed the court yesterday that the committee declined to meet and act on the Fund counsels’ application for compensation and reimbursement.
Two committee members, however-Sapuro Rayphand and Paul Joyce-asked that their positions be reported to the court, Gelber said.
Gelber said Rayphand and Joyce object to Brown Rudnick’s application on the basis that the amount requested is in excess of that which is reasonable.
The lawyer said the two do not object to the applications for compensation and reimbursement filed by the Fund’s other counsel, Braddock J. Huesman.
Gelber said the two members also have no objection to the applications for compensation and expenses filed by the committee’s counsels, Gelber and Colin Thompson law offices.
By Ferdie de la Torre
Reporter
