In re Westar Paving, Inc.

MEMORANDUM OF DECISION

On October 6, 1999, the Court heard the chapter 7 trustee’s Final Report and Application for Fees and Expenses and the Opposition thereto filed by the Office of the United States Trustee (“OUST”). Damon G. Saltzburg, Esq. appeared on behalf of the chapter 7 trustee, David L. Ray, Esq., and Peter S. Burke, Esq. appeared on behalf of the OUST.

After entertaining oral argument, the Court ordered further briefing on the issue of whether the chapter 7 trustee’s fees should be calculated using pre- or post-1994 amendment rates under 11 U.S.C. § 326 (a). 1 For the reasons set forth fully below, the Court finds that the pre-1994 amendment rates apply and orders the chapter 7 trustee to disgorge $6,771.85 of the fees received by the chapter 7 trustee on an interim basis.

I.

FACTS

Westar Paving, Inc., (“Debtor”) filed a voluntary chapter 11 petition on June 8, 1994. On July 18, 1995, the case was converted to chapter 7. On November 22, 1995, David L. Ray was appointed the chapter 7 trustee (“Trustee”).

The Trustee was awarded interim compensation on April 21, 1997, in the amount of $10,852.26 in fees and $178.54 in expenses. The Trustee submitted his Final…