Attorney Novak, Counsel for Debtor J. Graham Zahoruiko

Posted by David Falvey on Monday, April 28th, 2025 - 32 views

Facts

Attorney Novak, counsel for debtor J. Graham Zahoruiko, sought $24,650 in fees and $485.88 in expenses. His original agreement was a $7,500 flat fee. After most work focused on fighting a creditor’s valid claim, he amended the fee request.

Issues

Was Attorney Novak entitled to the full $24,650 in fees beyond the agreed $7,500?

Decision

The court approved only $8,945 in total fees and ordered full reimbursement of expenses. Novak must return $2,387.12 to the debtor.

Reasoning

The court found much of the work was either included in the flat fee or spent on frivolous litigation, not benefiting the debtor’s estate.