DEBTORS                                          CASE NO. 07-52519


     This matter is before the court on the Application to Pay Fees to Attorney for Trustee (“the Fee Application”) filed herein by J. James Rogan. The Fee Application seeks $37,450.00 which represents a 35% contingency fee, and reimbursement for out of pocket expenses in the amount of $107.73. An Order was entered on February 8, 2008, approving the Trustee’s Application to Employ Attorney for Trustee (“the Application to Employ”); the attorney to be employed was J. James Rogan (hereinafter “the Applicant”). Therein the Applicant represented that it was necessary to file an adversary proceeding to determine the validity of a mortgage securing a debt in the amount of $152,000.00. He sought to be compensated for legal services he rendered on a contingent basis of 25% of recovery obtained prior to filing an adversary proceeding or state court lawsuit; 35% of recovery obtained after such filing; and 40% of recovery if appealed.

     The Applicant filed adversary proceeding number 08-5051, J. James Rogan, Trustee v. Citimortgage, Inc. and New State Mortgage, LLC d/b/a New State Mortgage Co. LLC on April 8, 2008; approximately five weeks later he obtained a default judgment when the defendant mortgage companies failed to answer or otherwise respond. The judgment provides that the mortgage granted by the Debtors to Defendant New State Mortgage, LLC is avoided and preserved for the benefit of the estate and that Defendant Citimortgage, Inc. has no interest in the subject real estate. The judgment further provides for the sale of the real estate free and clear of any interest of either of the defendants. The real estate has been sold for $107,000.00.

     The Order approving the Application to Employ reserved the court’s ruling upon allowance of attorney’s fees as between the lodestar method and the contingency fee requested after review of counsel’s itemized fee requests. The Applicant’s itemization of time shows that he spent 29.1 hours as attorney for the estate in adversary proceeding number 08-5051. The court notes in that regard that his requested contingency fee of $37,450.00 would render an hourly rate of almost $1,300.00. In view of the fact that the Applicant obtained a default judgment in this matter, it appears to the court that a 35% contingency fee is not warranted. However, because the Applicant was willing to undertake the matter on a contingent basis, with no assurance that he would be compensated at all, some enhancement above normal hourly rates is warranted. The court will therefore reduce the award to 20% or $21,400.00. The Applicant may further recover his costs of $107.73 for a total award of $21,507.73. IT IS SO ORDERED.

Copies to:

J. James Rogan, Esq.

William D. Elkins, Esq.

U.S. Trustee