A recent Thomson Reuters story, “Legal Fees Take Mound in Madoff-Mets Case” reports that in a trial over whether owners of the New York Mets turned a blind eye to Bernard Madoff’s Ponzi scheme, jurors are expected to hear about fabulous fortunes.  But Irving Picard, the court-appointed trust, has sought an order to exclude any evidence concerning the more than $275 million in fees that the army of lawyers at his firm, Baker & Hostetler, racked up in their effort to recoup money for Madoff’s victims.

In his request, Picard anticipates that lawyers for the Mets owners will raise the legal fee issue.  He argues that the fees are irrelevant to the trial and could unfairly prejudice the jury against him.  U.S. District Judge Jed Rakoff, who will oversee the trial has yet to rule on the order.  Picard is seeking more than $300 million in principle the Mets’ owners invested and recouped in the two years before Madoff’s 2008 arrest.  In addition, Picard also is seeking to claw back $83.3 million in “fictitious profits” that the Mets earned in their accounts as a result of Madoff’s scheme.

Since bankruptcy-related cases are rarely heard by juries, the fees made by the trustee are not often an issue of contention before trial, according to legal experts.  The Mets case could be a rare case in which a jury learns just how lucrative trusteeship work can be.  In its most recent fee application made to the bankruptcy court overseeing the Madoff case – which covered the period from June 1, 2011, through Sept. 30, 2011 – Picard and Baker & Hostetler sought nearly $48 million.

According to the fee application, Picard billed 674.7 hours at an hourly rate of $850 for a total of $573,495.  David Sheehan, another Baker & Hostetler partner and the lead attorney for Picard, billed 877.9 hours, also at $850 an hour, for a total of $746,215.  It’s not known how much Picard has personally received for his work on the Madoff case.  The federal court case is Picard v. Katz, U.S. District Court, Southern District of New York.