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Fund, Boston counsel in talks to slash law firm’s $750K fee
The NMI Retirement Fund’s Boston-based counsel disclosed that it is in talks with the Fund to reduce the law firm’s $750,937.82 billing for legal services rendered.
Jeremy B. Coffey, one of the lawyers for the Boston-based Brown Rudnick law firm, informed the U.S. District Court for the NMI Bankruptcy Division on Thursday about their discussions with the Fund relating to compensation.
Coffey said the Fund, as a fiduciary, is keenly aware of the importance of monitoring and minimizing (where possible) administrative expenses of its estate.
In that regard, Coffey said, the Fund has raised with their law firm certain questions and concerns regarding the amounts sought for compensation and reimbursement for expenses.
Among the issues the Fund and Brown Rudnick law firm are discussing are those raised by other parties (including the CNMI government) who have filed objections or questions regarding the amounts being sought.
“The parties are engaged in good faith efforts to address such issues,” Coffey said.
The lawyer said it is anticipated that those discussions will result in a “meaningful reduction” to the amount being sought.
He added that the parties will be in a position to announce a negotiated resolution, supported by the Fund, in advance of the July 27, 2012, hearing at which the final application for compensation will be considered by the court.
The Brown Rudnick law firm is claiming that the Fund owes it $704,293.50 as compensation for professional services and $46,644 as reimbursement for related expenses, for a total of $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 amount, describing it as unreasonable.
The Office of the Attorney General asked the court to reduce Brown Rudnick’s compensation and reimbursement by 85 percent-just $112,640.67 instead of $750,937.823.
