Counsel for the debtor filed an application for compensation to which objections were filed by the United States trustee and Wells Fargo Bank concerning the claim for $5,585 for services related to extensive litigation with respect to a Wells Fargo claim which had been the subject of pre-petition confession of judgment proceeding brought by the bank against the debtor in the Circuit Court of the County of Grayson, Virginia, which ultimately was resolved in Wells Fargo’s favor.  The main objection was that the ensuing litigation by counsel for the debtor concerning Wells Fargo’s claim did not benefit the debtor, was futile from the outset, and only caused delay in the bankruptcy case.  It was also argued that none of the fees sought in relation to this litigation are reasonable under 11 U.S.C. § 330(a)(4)(B).

            The Court concluded that the ultimate failure of the Firm’s efforts to defeat Wells Fargo’s claim and that such efforts ultimately were of no benefit to either its client or the bankruptcy estate is not a sufficient reason to deny it compensation for those services.  The Court thus allowed the fees, although with certain reductions in the amount.