Last updated: February 19. 2013 10:44PM - 244 Views

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WILKES-BARRE ‚?? A Luzerne County judge ruled recently that $5.9 million in loan payments to a Dunmore bank must continue, but agreed with the Powell Law Group that attorney‚??s fees in the case are excessive.


Attorneys for the Powell Law Group have been seeking to stop payments on the $5.9 million loan and had asked a judge to reopen the case to examine the amount of attorneys fees owed in the case.


In court papers filed in August, Sebelin and Meuthing say that payments and associated fees on the three loans -- totaling $5.9 million -- are ‚??excessive,‚?Ě including a $635,743 payment in attorneys‚?? fees also owed by the law group.


In the largest loan, for $4.6 million, the bank obtained judgments against attorney Jill Moran, attorney Robert Powell and his wife and several others in February 2009 related to the default of loans for the townhouse project formerly known as The Sanctuary in Wright Township.


In the two remaining loans totaling about $1.3 million, lines of credit were given to Moran and Powell for ‚??working capital‚?Ě in the law group and for Big Kahuna Realty, according to court papers. Powell‚??s Big Kahuna Realty owns the Butler Township building that houses the law practice.


Judge Richard Hughes denied a request to stop the payments but said attorneys fees were excessive and reduced that number to $231,448 ‚?? a reduction of just over $404,000.


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