By Erik Loney
KXLY [Spokane WA]
February 22, 2007
http://www.kxly.com/news/?sect_rank=2§ion_id=560&story_id=8757
U.S. Trustee Gary Dyer filed four objections Thursday afternoon questioning the billing statements of attorneys for both the Spokane Diocese and alleged abuse victims.
Court documents say the Diocese attorneys, Paine Hamblin, billed for as many as four attorneys to review the same document. The firm is also being questioned for sending and billing for multiple attorneys to attend the same meetings.
Documents also raise issue with lead bankruptcy attorney Shaun Cross raising his hourly rate from $200 per hour to $250 per hour without notifying the court. Documents say he personally billed the Diocese almost $400,000 last year.
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| A trustee in the bankruptcy case of the Spokane Diocese is objecting to the fees that attorneys are charging for their services. Photo by KXLY4 |
The trustee also criticizes billing statements by the victim's bankruptcy attorneys, Pachulski and Stang, for the same things. He also says the victim's attorneys were also billing for work on documents that were never filed. Dyer also alleges that Pachulski and Stang billed for improper and unjustified travel expenses that cost hundreds, and thousands, of dollars per day.
The Diocese has agreed to pay $48 million to get out of bankruptcy, and local Catholics are expected to raise $10 million of that amount. Attorney fees are expected to cost $7-8 million.
The trustee also objected to the Diocese disclosure statement; their plan to get out of bankruptcy. Court documents say the plan does not have enough information, and that makes evaluating the risk to Diocese churches and schools nearly impossible. Dyer asked the bankruptcy judge to deny the plan in its current form.
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