Recent Ruling: Party Requesting Appointment of a Receiver is Responsible to Pay the Costs of the Receivership
By Grant, Taylor*
Heard in the Halls
Welcome to the latest edition of Heard in the Halls. Please provide your snippits of news, questions or comments about receivership issues or the professional community by telephone, mail, fax, or email to: Alan M. Mirman, Mirman, Bubman & Nahmias, LLP. 21860 Burbank Blvd, Suite 360, Woodland Hills, CA 91367. Phone: (818) 451-4600; Fax: (888) 451-7624; email: firstname.lastname@example.org
Taylor Grant of the LA/OC Chapter reports on a recent ruling finding that the party requesting the appointment of a receiver (and agreeing to pay the costs of the Receivership) is responsible for paying the equity receiver and his counsel. The impending maturity of the real estate financing on the property of the estate required Receiver Grant to act immediately and to hire counsel. The order approving retention of counsel required Plaintiff to post a six figure bond to cover the fees of the Receiver and his counsel. When Plaintiff failed to post the bond, Mr. Grant and counsel returned to Court requesting that the court relieve them both of their retention. After the granting of that Motion, Plaintiff refused to pay the Receiver and or his counsel. At the hearing on a Motion to Compel Payment, the court ordered the Plaintiff to pay the Receiver and his counsel for services rendered through the dismissal plus more than $40,000 for fees incurred compelling payment. The court’s ruling provides in part: “This is a case of be careful for what you ask for. (Plaintiff sought appointment of the) Receiver and agreed to pay him. It also had no objection to his retention of counsel and payment of those expenses. The Receiver was appointed, and now (Plaintiff) must pay his fees and expenses.”
*Alan M. Mirman is a partner in the Woodland Hills law firm of Mirman, Bubman & Nahmias, LLP, and specializes in creditor’s rights. His practice includes provisional remedies, representation of receivers, litigation, loan and lease documentation, and the like.