Opinion ID: 582732
Heading Depth: 2
Heading Rank: 3

Heading: Reasonableness of Expenses

Text: 32 San Vicente asserts that the district court's award to Orr is unreasonable. The award of receivership fees in an SEC action is analogous to the award of receivership fees in bankruptcy proceedings, and we review the district court's award for an abuse of discretion. See Southwestern Media, Inc. v. Rau, 708 F.2d 419, 422 (9th Cir.1983) (A trial court has discretion to determine reasonable compensation for services rendered in bankruptcy proceedings.); United States v. United Foam Corp., 618 F.2d 577, 580 (9th Cir.1980) (trustees' fees and receivership fees should only be overturned on a finding of an abuse of discretion); In re Abilene Flour Mills Co., 439 F.2d 937, 939 (10th Cir.1971) (the principle that attorneys' fees in bankruptcy proceedings are reviewed for an abuse of discretion is also applicable to the determination of receivers' fees). The district court's findings of fact are reviewed for clear error. See Southwestern Media, 708 F.2d at 422. 33 The district court determined that Orr was entitled to $425,878 from San Vicente for unallocated receivership expenses and accounting expenses. 6 This amount is not simply San Vicente's pro rata share of Orr's total expenses; it is based on the time and effort Orr expended in managing San Vicente. San Vicente's share of the receivership expenses was greater than that attributed to the other limited partnerships because Orr spent a disproportionate amount of his time as receiver managing San Vicente affairs. Orr took control of San Vicente's construction project, which was only 41% completed when he was appointed receiver, and brought about the building's completion. The building was sold subsequently for $18,250,000, allowing San Vicente's limited partners to recoup a large percentage of their original investment. 34 In determining that Orr was due $425,878, the district court applied the factors enunciated in Johnson v. Georgia Highway Express, Inc., 488 F.2d 714, 717-19 (5th Cir.1974) (determining reasonable attorneys' fees in civil rights action). See also In re Yermakov, 718 F.2d 1465, 1471 (9th Cir.1983) (citing Johnson in using similar factors to assess attorneys' fees in bankruptcy proceeding). In sum, the court determined that Orr and his staff spent a large percentage of their time and effort working with San Vicente and that San Vicente greatly benefited from this work. In addition, the court found that the work was extremely difficult. The district court also noted that the limited partners had agreed to pay APC and a developer $3,426,500 for completion of the building while Orr and his staff performed 59% of this work for only $425,878. 35 The district court's factual findings, which must be accepted absent clear error, are sufficient to establish that the award was reasonable. The award represents a portion of the overall receivership costs, and the district court, within its discretion, determined that San Vicente should bear a large percentage of these unallocated costs. We find no error in the district court's findings, and we affirm the district court's award as reasonable.