Bankruptcy lawyers bill Borders more than $1 million for first six weeks of work
Attorneys for Ann Arbor-based Borders Group Inc. are billing the book store chain more than $1 million for the first six weeks of work in Borders' Chapter 11 bankruptcy case.
Kasowitz, Benson, Torres & Friedman LLP on Wednesday filed a document with the U.S. Bankruptcy Court's Southern District of New York requesting that the court approve the payment of $1.02 million in fees.
Borders' bankruptcy attorneys are charging hundreds of dollars an hour.
Angela Smith | For AnnArbor.com
Eleven attorneys are billing more than $500 an hour for their services. The attorney with the highest billing raite is David M. Friedman at $950 an hour. Three others are billing more than $800 an hour.
The 202-page filing by Kasowitz includes an itemized list of every hour worked by the attorneys. It also includes billing rates for clerks and paralegal professionals, whose rates range from $130 an hour to $195 an hour.
Also Wednesday, consultancy AlixPartners, which is also providing services to Borders, reported its pay rates to the court. A dozen of those consultants are billing more than $500 an hour.
Meanwhile, Borders, which is closing 226 superstores and considering a move out of Ann Arbor, is reportedly seeking more financing, better terms with vendors or a sale in an effort to dodge liquidation.
In its court filing, Kasowitz offered a defense of its compensation rates as "fair and reasonable" due to "the complexity of these cases," "the time expended," "the nature and extent of the services rendered," "the value of such services" and "the costs of comparable services other than in a case under the Bankruptcy Code."Here's a list of the Kasowitz attorneys billing at least $200 an hour:
1. David M. Friedman: $950 an hour for 94.2 hours.
2. David S. Rosner: $875 an hour for 1 hour.
3. Andrew K. Glenn: $825 an hour for 255.10 hours.
4. Adam L. Shiff: $825 an hour for 77 hours.
5. Robert M. Novick: $775 an hour for 29.7 hours.
6. Michael D. Rosenbloom: $675 an hour for 25.6 hours.
7. Barry Rutcofsky: $650 an hour for 64.3 hours.
8. Jeffrey R. Gleit: $640 an hour for 281.4 hours.
9. Alan Lungen: $625 an hour for 202 hours.
10. Ross G. Shank: $550 an hour for 219.7 hours.
11. Daniel A. Fliman: $525 an hour for 70 hours.
12. Michael E. Friedman: $400 an hour for 18.90 hours.
13. Michele L. Angell: $360 an hour for 178.7 hours.
14. Alana Sher Klein: $350 an hour for 40.4 hours.
15. Nii-Amar Amamoo: $335 an hour for 172.5 hours.
16. Julia Balduzzi: $325 an hour for 249.5 hours.
17. Kelly S. Johnson: $315 an hour for 2.6 hours.
18. Simone K. Lelchuk: $300 an hour for 264.5 hours.
19. Meredith A. Wholley: $275 an hour for 20.80.
20. Matthew Cowherd: $265 an hour for 5.7 hours.
21. Richard M. LaRosa: $225 an hour for 9.5 hours.
22. Lauren M. Davis: $200 an hour for 55.30 hours.
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
Comments
Macabre Sunset
Fri, Apr 22, 2011 : 6:17 p.m.
My question: can Borders apply to have the $1 million paid by the Michigan Film Incentive program? Because surely they will make movies some day about how badly this (former) company has been mismanaged in recent years.
Alex
Fri, Apr 22, 2011 : 2:11 p.m.
@snoopdog Unfortunately, you would be hard pressed to find an attorney capable of handling even small corporate matters who charges less than $250 an hour.
areyoukiddingme
Fri, Apr 22, 2011 : 2:08 p.m.
I can't believe in Ann Arbor or at the very least S.E. Michigan there isn't a Law Firm that couldn't do what this Firm is doing? At least some of the $$ would then be spent here. Their income would be taxed here instead of NY or wherever they currently are billing from.
Alex
Fri, Apr 22, 2011 : 2:12 p.m.
The proceedings aren't taking place in Michigan.......
Goofus
Fri, Apr 22, 2011 : 1:56 p.m.
I wonder how much the average Border employee (aka the people that will actually be losing their jobs in the restructuring...) is making per hour these days?
JSA
Fri, Apr 22, 2011 : 12:59 p.m.
What do you get when you cross a vampire with a leech? A bankruptcy lawyer, of course!
ferdcom
Fri, Apr 22, 2011 : 1:37 p.m.
That's funny?
Alex
Fri, Apr 22, 2011 : 5:28 a.m.
To say that these people "earn" this much is very misleading. I work as a paralegal and bill my time at about $220 an hour, but I don't make anything close to that amount. Just like doctors, lawyers often bill at rates much higher than their rate of pay. The money for operating expenses doesn't come from the sky. I'm not saying that the rates aren't high, but certainly to say that these people are "earning" that much is plain false.
Macabre Sunset
Fri, Apr 22, 2011 : 6:15 p.m.
Math wasn't your best subject, was it? Overhead is relatively low for a law office. The paralegal racket is a fairly serious problem, and one that leads to the low opinion many have of the legal profession today. No one should charge $220 an hour for someone who isn't qualified to make decisions. That's all padding for the partners.
Brian M.
Fri, Apr 22, 2011 : 3:55 a.m.
That's a lot of money for them to basically tell Borders they're screwed. I absolutely cannot imagine they are better than a firm that would charge half or a third of this cost.
snoopdog
Fri, Apr 22, 2011 : 2:50 a.m.
Shame on Borders hiring any attorney's that charge more than 250 bucks an hour ! I am done shopping at Border's. Good Day
Alex
Fri, Apr 22, 2011 : 2:11 p.m.
Unfortunately, you would be hard pressed to find an attorney capable of handling even small corporate matters who charges less than $250 an hour.
treetowncartel
Fri, Apr 22, 2011 : 2:42 a.m.
264 hours in six weeks? 249.5 hours in six weeks? 255 hours in 6 weeks? What do you think you in 6 weeks/ 748.5 hours?
treetowncartel
Fri, Apr 22, 2011 : 2:34 a.m.
Don't be so quick to judge, I bet they give u p a lot of time for pro bono work.
Tom Joad
Fri, Apr 22, 2011 : 1:46 a.m.
Grubs getting their share...the legal profession is basically moribund and they need any way necessary to pay off their student loans....
fishjamaica
Thu, Apr 21, 2011 : 9:57 p.m.
And people feel that teachers are overpaid?