In Re Nucorp Energy, Inc., an Ohio Corporation, and Its Affiliates, Debtors. Luce, Forward, Hamilton & Scripps

Pursuant to section 330 of the Bankruptcy Reform Act of 1978, Pub.L. No. 95-598, 92 Stat. 2549 (codified as amended at 11 U.S.C. §§ 101-15326 (1982)), appellant Luce, Forward, Hamilton & Scripps (“Luce, Forward”) petitioned the bankruptcy court for the recovery of legal fees incurred in the handling of the Chapter 11 reorganization of Nucorp Energy, Inc. The bankruptcy court awarded recovery of the entire amount requested with the sole exception of compensation for time devoted to the preparation and presentation of the attorneys’ fee applications. The district court affirmed the bankruptcy court’s decision to disallow compensation for services related to fee application preparation. On appeal, Luce, Forward contends that the denial of compensation for the reasonable value of services rendered in the preparation and presentation of attorneys’ fee applications contravenes both the letter and spirit of the Bankruptcy Reform Act of 1978. We agree.

I. FACTS

On July 27, 1982, Nucorp Energy, Inc. (“Nucorp”) and 27 of its affiliates commenced separate Chapter 11 cases in the bankruptcy court for the Southern District of California. At the time the cases were commenced, the affiliated…