Denies Bonuses For Two Firms

It isn't often we get to report on lawyers NOT receiving large amounts of money. Two law firms involved in Northwest Airlines' Chapter 11 bankruptcy case were denied bonuses Tuesday, as the judge said the firms had already earned more than enough.

The Detroit Free Press reports US Bankruptcy Court Judge Allan Gropper rejected a request for $3.5 million in fees by the law firm of Cadwalader, Wickersham & Taft LLP, which represented Northwest during its bankruptcy. Another law firm -- Otterbourg, Steindler, Houston & Rosen PC, which represented Northwest creditors -- was also denied $700,000 in bonuses.

In his ruling, Gropper said both firms' average rates -- amounting to around $500 an hour -- provided adequate compensation for their time. He also noted lawyers on either side did nothing particularly remarkable to warrant the added pay.

Northwest spokesman Dean Breest had no comment on the matter. Neither did the law firms asking for more money.

Those two firms aren't the only ones asking for a post-case spiff. Two additional firms which represented creditors -- FTI Consulting Inc. and Lazard Freres & Co. -- have asked for a combined $4.75 million in post-case costs. Those requests are still under review.

Northwest's flight attendants union, the AFA-CWA, took credit Wednesday for the denial of additional fees. The union had vehemently objected to the bonuses.

"If AFA-CWA had not objected today, more millions of dollars of our concessions would have been wasted on these outrageous fees," said Kevin Griffin, Northwest's AFA-CWA Master Executive Council president.

A total of 24 law firms received approval from Judge Gropper for their regular fees and expenses throughout the court proceedings, the Free Press reports. That total bill came out to $118.8 million in fees, and another $5.4 million in expenses.

FMI: www.nwa.com, www.cadwalader.com, www.oshr.com