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StumbleJudge warns against overbilling in Station Casinos bankruptcy case
Tuesday, March 2, 2010 | 6:11 p.m.
Sun archives
- Station Casinos reaches deal with key lenders, hopes to emerge from bankruptcy (2-25-2010)
- Bankruptcy judge urges Station Casinos, creditors to negotiate (1-25-2010)
- Fertittas seek to block creditors’ lawsuit in Station bankruptcy case (1-12-2010)
- Company might manage 4 Station Casinos properties (1-6-2010)
- Station Casinos bondholders want permission to sue (12-29-2009)
- AG says any Station Casinos trustee must be licensed by gaming regulators (12-3-2009)
- Station Casinos, lenders agree to rent decrease at 4 properties (11-20-2009)
- Creditors want to expand probe of Station Casinos deal (11-19-2009)
- Station Casinos’ loss widens on reorganization costs (11-16-2009)
- Station Casinos wants more time to restructure finances (10-16-2009)
- Judge grants request of Station Casinos creditors to probe 2007 deal (9-30-2009)
- Station Casinos opposes creditors’ request to probe 2007 deal (9-29-2009)
RENO -- Lawyers and accountants are pulling in the big bucks in the Station Casinos bankruptcy case.
Some lawyers are charging close to $1,000 an hour, plus there are expenses billed for non-working travel time.
U.S. Bankruptcy Judge Greg Zive told lawyers Tuesday he would look for overbilling and questioned expense accounts. He approved $12 million in interim fees and expenses for law and accounting firms.
The judge noted that progress has been made in an agreement with key lenders and the company in clearing the way for Station to emerge from bankruptcy. Attorney Paul Aronzon told the judge there has been "good progress" and a creditors meeting is set for March 5.
The majority of the secured lenders, such as Deutsche Bank and J.P. Morgan, have holdings of Red Rock, Palace Station, Boulder Station and Sunset Station. They have secured debt of $2.4 billion. Other major lenders also have security in other casinos.
Most of the hearing was taken up with the judge approving the request for interim payment of fees and expenses, but Zive had several questions.
For example, one accounting firm charged $19,500 in hotel bills. Zive pointed out that Station Casinos has hotels where the representatives of FTI Consulting Inc. can stay.
"I don't know if the hotels still comp, but we need to be careful," Zive said. "This is not a large amount of money but it doesn't have to be."
The judge approved $3.9 million in fees and expenses for one law firm where some 50 attorneys and legal assistants are working on the case representing Station.
The judge noted two lawyers in the firm of Milbank, Tweed, Hadley & McCloy are charging $995 an hour and a small group of others are billing at $900 to $950 an hour.
"When you bill at that rate, I expect a great deal of efficiency," he said.
The money to pay these fees comes from Station Casinos.
These are the first interim payments and the judge will approve the final bills when the bankruptcy case is completed.
"I don't want to go to the expense of hiring a fee examiner but if I become uncomfortable, I will do that," Zive told the lawyers in the courtroom and on the telephone.
Station filed for bankruptcy at the end of July and must produce a reorganization plan by March 27.
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And we complain about firefighters making a measly 144 bucks an hour.
Just confirms my distrust and belief that all lawyers and a lot of accountants are not to be trusted, and believe me I'm being nice here...
Lawyers, Real Estate Agents, Mortgage Brokers, Bankers, Politicians or anyone who believes that their skill is unique & important yet they are not and in fact in this world their skill very common.
You can add to the list, those in your life who beleive they are valuable / more important than others have unrealistic pride ... These human beings do not contribute the GDP. What do they produce toward the advancement of our economy, mankind, the future of children(even the future of their own children)?
It is a false impression they have of themselves and their importance and value to society?
If you do believe that you are of such value over others... you fool yourself, and remember that you are the easiest person to fool.
It is not the man who has little, but he who desires more, that is poor.
Human selfishness and greed will need to end before our race can advance.
Can you add other so called professions who really believe that their value is worth more than it is?
Now we know where all the money for employee benefits is going. The Fertittas are sitting back watching as the employees are footing the bill and they will come out of bankruptcy all the more richer.
humanelement,
It's called capitalism. The way it works is the price paid is whatever the market will bear.
Human selfishness and greed have nothing to do with it. It is the American way.
Embrace It!!!
I never understood why attorneys call themselves "esquire", i.e. Harry Ambulancechaser, Esq. It's supposed to denote respect, but respect is something that has to be earned, you can't just arbitrarily assign it to yourself.
"This is not a large amount of money ($19,500) but it doesn't have to be." Says the Judge.
Don't forget he's part of the good ole boys club also.
Many of these thieving attorneys will end up being our future elected representatives. At the same time, we must remember that they were hired and i am sure their rates and terms were known by the client prior to billing beginning.
"Judge warns against overbilling in Station Casinos bankruptcy case" - I think he's a little late!
Two men at a bar and one says, "All Lawyers are A## Holes". Response comes, "I resent that remark". say the other.
"Are you a Lawyer?" the other ask.
"No! I'm a a## hole", came the response.
This goes on all across the Country, and is a terrible commentary on attorneys. And, they wonder why they are so poorly thought of. A stern warning from the Judge, but it will go nowhere!
neutral It would be nice if you actually knew what you were writing about.Human shelfishness and greed have everything to with IT,and that is why the judge is raising this question.The American Bar Association would consider these fees excessive and should. The American Bar Association has standing in this matter.
By the same token with the rush ro deregulate everything and take away all oversight this is what society gets, the rich get richer and the poor get poorer. In this case the guys doing the charging are being watched by those who are their peers. This has to with the fix being In and nothing to do with capitalism.
homer,
I repeat - Capitalism at work.
I agree with PorscheRunner! It is no secret that the only clear winners in a bankruptcy are the lawyers! It makes sense to file a pre-packaged bankruptcy to save legal fees etc, but it is my belief in this case that investors were not accepting the scraps that Colony and the Fertitta family were throwing at them.
It's quite clear the fertittas are not the losers as Station Casinos is paying their 'Bar' tab. Employees are footing the bill for the scum at the top.
Kudos to the bankruptcy judge for even bringing this up!!! And making his position clear.
BTW - THAT $1000 per hr billing rate is GROSSLY INFLATED even for attorneys from those "top of the line" firms. Most BK attorneys' hourly rates are not the same as their usual hourly rates, often at times less. However, considering the client is a casino company - I can see the attorneys trying to get what they can. AND THE CLIENT LETTING THEM GET AWAY WITH IT!!!
Please don't give Judge Zive any kudos Det___Munch. Judge Zive has made a whole lot of questionable calls in the Station Casinos case, denying creditors other than Deutsche Bank rights and remedies to which they those other creditors are clearly entitled under the Bankruptcy Code.
Comments like his today are just for show. Every Chapter 11 bankruptcy case involves bleeding the junior secured creditors and unsecured creditors of any hope of payment. The Sun's article says "The money to pay these fees comes from Station Casinos." No, it comes out of the junior creditors' pockets.
As to $950 per hour bankruptcy lawyers, I actually know one. He's the most brilliant lawyer I've ever met, and does an amazing job for his clients when they have some hope of succeeding in their goals. If their cases are dogs, he hands them down to his $500 to $750 per hour junior partners.
It's the ordinary bankruptcy lawyers whose firms charge $500 to $750 per hour for their time, and who bill cases 9 to 11 hours each day, who are the problem Judge Zive is talking about. But watch him as the case goes on. He'll make a big show about bills being "very high", but do nothing about it.
In my view, Judge Zive's rulings in the Station Casinos case show he is playing for the combined Deutsche Bank and Stations team. I am watching and holding my breath as to what he will do to the Greenspun entity with respect to Green Valley Ranch.
Who cares about how much the lawyers are getting paid , look at what jerks station casinos are. they pay all this money for lawyers and yet they're closing down whole departments in their casinos, like uniforms department, workers who have been loyal to them for years! They want to subcontract their stewarding so they don't have to pay for their workers benefits.they would save so much money paying a company to do the stewarding so many people who have worked with them for years woukd have to adjust to new pay rate and no benefits or get the hell out. The workers have basically no one to back them up its really not fair those people need a union this would never happen at a casino on the strip.they are doing all they can to save money for their debts but yet they can splurge on lawyers who cares about the working class right?? Obviously they don't care about the people!!!