It is expensive to stay in Bankruptcy. Last month a Brown Rudnick lawyer tried to increase his hourly rate from $1,000 per hour to $1,500 per hour. Chief Judge Laurie Selber Silverstein in Delaware rejected the increase, “saying that no client would approve such a steep fee hike in the middle of a case.” See Reuters article.
“There may be a reason, but a 50% increase of someone’s rates is not something that any client I ever had would have accepted,” Silverstein said at a court hearing. “If he’s behind market, I don’t think he gets to catch it all up at one time.”
Judge Silverstein allowed $1,000 per hour for the lawyer. The case is In re Kidde-Fenwal, Inc. The highest hourly fees charged by Brown Rudnick partners is $2,250 per hour. As of February 2024, the Fee Examiner reported that 15 firms had billed over $20 million in the case, which was filed in May 2023.
Scott Riddle’s practice focuses on bankruptcy and reorganization. Scott has represented businesses and other parties in Bankruptcy cases for over 30 years. You can contact Scott at 404-815-0164 or scott@scottriddlelaw.com. For more information, click here.