In Re Manoa Finance Company, Inc., a Hawaii Corporation, Debtor. H. William Burgess v. Charles R. Klenske, Trustee

This appeal presents the issue whether under § 330 of the Bankruptcy Reform Act of 1978, 11 U.S.C. § 330 (hereafter § 330), a fee award based on an attorney’s standard hourly billing rate and the actual number of hours worked may be enhanced on the basis of the factors set forth in Kerr v. Screen Extras Guild, 526 F.2d 67 (9th Cir.1975), cert. denied, 425 U.S. 951 , 96 S.Ct. 1726 , 48 L.Ed.2d 195 (1976). In keeping with the general standards applicable to federal fee-shifting statutes, we hold that compensation awards under § 330 may be enhanced only in exceptional circumstances where the applicant produces specific evidence that an award based on his standard hourly rate and actual hours worked does not fairly compensate for the work done, as is the purpose of the Kerr factors.

BACKGROUND

Appellant represented the Creditors’ Committee in Manoa Finance Company’s reorganization under Chapter 11 of the Bankruptcy Reform Act of 1978, 11 U.S.C. § 1101 et seq. He eventually filed an application for final compensation under 11 U.S. C. § 330 based on his standard billing rate for actual hours spent performing necessary legal services, plus general excise taxes and reimbursement of…