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Law Firm Resolves Fee Dispute in Sungevity Chapter 11 Bankruptcy

October 9, 2017 | Posted in : Bankruptcy Fees / Expenses, Billing Practices, Fee Dispute, Fee Reduction

A recent Law 360 story by Matt Chiappardi, “MoFo Resolves Fee Dispute in Sungevity Ch. 11” reports that Morrison & Foerster LLP resolved its fee dispute with bankrupt rooftop solar firm Sungevity Inc.’s buyer and post-petition lender, agreeing to reduce its bid by $25,000 and clearing the way for its total request of about $2.5 million for the roughly six-month-long case.

During a hearing in Wilmington, U.S. Bankruptcy Judge Kevin Gross agreed to approve the fee requests from both Morrison & Foerster and restructuring adviser AlixPartners LLP, both of which worked on Sungevity’s case, after hearing that a dispute with Solar Spectrum Holdings LLC was resolved after giving the parties some time to hammer out a deal.  “There are no longer any objections to the fee applications,” Sungevity attorney M. Blake Cleary of Young Conaway Stargatt & Taylor LLP told Judge Gross after returning from a recess called so the sides could negotiate.

Under the deal both Morrison & Foerster and AlixPartners would reduce their fee bids by $25,000 apiece and neither would bill for having to defend their applications.  The parties are expected to file their final proposed orders for fees, which Judge Gross agreed to sign.

The fees became a disputed issue in the case last week, when Solar Spectrum asked the court to cut about $304,000 from a $1.6 million Morrison & Foerster bill and nearly $183,000 from a $1.1 million AlixPartners bill, arguing that the money was for duplicative and unnecessary work.

The case is In re: Sunco Liquidation Inc. et al., case number 1:17-bk-10561, in the U.S. Bankruptcy Court for the District of Delaware.