Diocese’s Legal Costs Now Exceed $2.25m

By Elizabeth Hardin-Burrola
Gallup Independent
May 28, 2015

http://gallupindependent.com/

ALBUQUERQUE – The Diocese of Gallup’s legal fees and expenses for its bankruptcy case now exceed $2.25 million.

Attorneys, accountants, insurance researchers and real estate appraisers submitted quarterly billing statements to U.S. Bankruptcy Court for the period of Jan. 1 through March 31, 2015. The total figure of $2,258,084.14 includes approximately $57,000 already paid by the diocese. The remaining professional fees and expenses billed by attorneys and accountants will not be paid until the Gallup Diocese has an approved plan of reorganization.

The listed professionals have submitted the following quarterly and total billing figures, which do not include any payments made to them by the diocese prior to its bankruptcy filing on Nov. 12, 2013.

Quarles & Brady LLP: The Diocese of Gallup’s lead bankruptcy law firm from Tucson submitted a quarterly statement for $215,067.99 for legal fees and expenses. The firm’s total post-petition bill is now at $1,344,666.05.

Keegan, Linscott & Kenon, P.C: This Tucson accounting firm took over the Gallup Diocese’s finance office in the summer of 2013 after Deacon James Hoy, the diocese’s chief financial officer, resigned. The firm corrected a billing error of $556.25 from its 2014 final quarterly statement, and it submitted a 2015 first quarterly statement for $38.279.28 in fees and expenses. The firm’s total post-petition bill is now at $314,816.44.

Stelzner, Winter, Warburton, Flores, Sanchez & Dawes, P.A: The diocese’s special counsel law firm from Albuquerque billed $996.71 in fees this quarter. The firm’s total post-petition bill is now at $10,750.76.

Insurance Archaeology Group: This insurance research company submitted a quarterly statement for $1,495.80 in fees and expenses. To date the company has billed the Gallup Diocese $47,929 and has been paid that amount.

Estate Valuation Consultants, Inc: This real estate appraisal company submitted its first quarterly statement for $12,200 in fees and expenses and has been paid $9,200 thus far.

Michael P. Murphy: Murphy was recently appointed as the “Unknown Claims Representative” to represent any new clergy sex abuse victims who might come forward in the future. Murphy has not submitted any fees or expenses yet, but his flat fee of $50,000 will be due and payable upon the effective date of any plan of reorganization.

Walker & Associates, P.C: The diocese’s Albuquerque bankruptcy law firm did not submit a statement for the first quarter of 2015. To date, the firm has billed $18,062.40 in post-petition fees and expenses.

Pachulski Stang Ziehl & Jones LLP: This law firm represents the legal interests of clergy sex abuse survivors who have filed claims against the diocese in bankruptcy court. The firm submitted a quarterly statement for $86,284.57 in fees and expenses. The firm’s total post-petition bill is now at $459,659.49.