Receivership News ("RN") recently had the opportunity to interview Judge Sheila Fell who has served on the bench in Orange County for twenty one years – six years as Commissioner and fifteen years as a judge. What is interesting about Judge Fell’s background is that she handled roughly a dozen receivership assignments as a lawyer before taking the bench. It is RN’s view that this makes Judge Fell uniquely qualified to opine on the role of a receiver, the relationship between a receiver and the judge he or she reports to, and other insights. But before we get into all of that, let’s start at the beginning:

Judge Fell was born in Canada but grew up in the Bay Area in northern California. She attended Mills College and the Highland School of Nursing. Even today, she is a registered nurse subject to updating her continuing education. With a vision to become a lawyer, she entered law school at Western State and graduated with a JD. While at law school, she met Keith Meyer, who not only became her husband, but also her law partner (Fell & Meyer). It was during this time that Judge Fell worked as a panel trustee for the Office of the United States Trustee. She also was appointed as a receiver in approximately twelve receiverships in both state and federal court. All of this provided the background for Judge Fell to become a Commissioner in the Orange County Superior Court followed by becoming a full judge.

Based on her years of practice, Judge Fell’s preference is to remain settlement-minded. She firmly believes that the best outcome for a lawsuit is for the parties to agree on a settlement rather than proceeding with a full trial to be followed by a judicial determination. RN has actually witnessed Judge Fell leaving the bench, walking into the well, pulling up a chair in front of the counsel tables, and saying, "Let’s see if we can settle this matter."

Judge Fell acknowledged that she sees the threatened appointment of a receiver as a tool of settlement. She reports that she has witnessed the parties quickly coming together to reach a settlement before a "stranger" is introduced to take control of the business or real estate project that is the focus of the dispute.

Judge Fell has spent most of her time in civil litigation. However, she has been challenged to use her judge skills in family law where she sat for approximately two and one half years.

Judge Fell has appointed roughly a dozen receivers during her tenure on the bench. Judge Fell encourages receivers to seek instruction from the Court rather than for the receiver to undertake activities that may later come into question. Judge Fell also expects her receivers to have a game plan – where is the case now and where is it going. This should include a budget for fees, including counsel if appropriate. Judge Fell is comfortable having non-lawyer receivers appear in her courtroom in pro per so long as the case is routine and straight forward. Obviously, if it is going to involve litigation (either pursuing or defending), counsel needs to be added to the equation.

In one unusual case that Judge Fell handled in family law a decade ago, a foreign national couple was in the middle of a contested divorce; both worked in a business that imported cables that in a decade-old technology connected the central processing unit to the monitor. Their U.S. importing company had world-wide distribution rights for integral parts for a major, worldwide computer manufacturer. Both petitioner and respondent were active in the day-to-day management of the business but could not agree on the time of day at this stage in the divorce proceedings. The level of animosity had become a serious impediment to the success of the company that was reportedly very profitable with about $35 million in annual revenues. The Court initially ordered one spouse to run the company one day and the other spouse to oversee the company the next day. However, it quickly became clear that this bifurcated management approach was not working. Solution: A receiver was appointed. The receiver quickly discovered that the husband respondent was "dating" the competition and sharing with her all of the trade secrets of the Respondent’s company. What to do? The neutral receiver brought an ex-parte petition for instruction and recommended that the Respondent be barred from the company except for review of financial data on a quarterly basis. This worked. Settlement was finally reached based on the Receiver’s recommendation to divide the company where one spouse received the "original equipment manufacturer" ("OEM") side of the business, and the other spouse got the exclusive worldwide marketing rights. Judge Fell noted that this was a good application of a receiver in that it solved a growing impasse in the management of the company and paved the way for a settlement.

On the gnarly issue of paying a receiver’s fees in an insolvent estate, Judge Fell shared the following perspective. If a bank sought the appointment of the receiver pursuant to a trust deed, and the estate turns out to be insolvent, then Judge Fell has no problem requiring the Plaintiff bank/lender to pay the receiver’s fees. In other cases, the Judge stated that before she assigns one party to the litigation to pay the fees of the receiver in an insolvent matter, it will likely depend on other variables including the reason for the insolvency. For example, did one party inappropriately take the money that now creates the insolvency? Judge Fell’s best advice to receivers: don’t accept an assignment that might become insolvent!

Judge Fell has been a long-time friend of the California Receivers Forum and has appeared on numerous panels over the years, including an appearance at Loyola V that was held at the Convention Center in Los Angeles to accommodate the crowd during the 2009 growth period of receivers.

Interestingly, when it comes to mentors, Judge Fell is quick to acknowledge U.S. District Judge Spencer Letts who appointed Judge Fell as receiver before she became a judge. Judge Fell models her own judicial style after Judge Letts in terms of having compassion and being fair, but also running a tight courtroom.

On the personal side, Judge Fell is married to Keith Meyer, who is now a retired lawyer with a distinguished military background having served as a Green Beret and later being in charge of all training for the Green Berets. They have three children and five grandchildren combined. Hobbies and interests include travel, cooking on the weekends, hiking, and enjoying friends and Southern California living. As evidenced by the photo below, if you want to have an ex parte communication with Judge Fell, you will likely find her hiking one of the many Orange County trails on a Saturday morning with fellow hikers including Commissioner Ellie Palk. Judge Fell has no plans for retirement. She enjoys her role as Judge and is looking forward to the next trial or settlement.

Good luck Judge Fell, and RN salutes you for your receiver background, continued use of receivers where appropriate and your contribution to the success of the California Receivers Forum.

*Robert P. Mosier is a Southern California trustee and receiver and principal of Mosier & Company, Inc., a firm that has specialized in managing and turning around troubled companies for more than 25 years.