October 07, 2005

Trustee says lawyers charging too much in diocese bankruptcy



Associated Press

A federal court watchdog says lawyers in the Catholic Diocese of Spokane bankruptcy case are charging too much.

U.S. Trustee Ilene Lashinsky reviewed some of the early bills submitted to the diocese and contends in recent court filings that four firms overcharged $294,000 for such things as having multiple attorneys at court hearings and doing duplicative work.

The diocese on Monday will file a disclosure statement and plan of reorganization telling how it intends to settle sex abuse claims and emerge from Chapter 11 bankruptcy protection.

In a bankruptcy case, the organization that files for protection generally pays the legal bills of lawyers on both sides of the case.

Posted by kshaw at October 7, 2005 07:36 PM