Protective Committee for Independent Stockholders of TMT Trailer Ferry, Inc. v. Wolff
Protective Committee for Independent Stockholders of TMT Trailer Ferry, Inc. v. Wolff
Opinion of the Court
As this Chapter X reorganization in bankruptcy grinds slowly toward its fifteenth anniversary in June of this year, we consider again two of the several appeals on which we held joint oral argument.
The Protective Committee has appealed the orders of November 3, 1970 and March 31, 1971, awarding attorneys’ fees. By these orders Trustee’s Attorney Wolff has been awarded the total amount of $89,020 for services in the year 1970, at an hourly rate of $60, which, added to the payment received in 1969 of $60,583, totals $149,603, interim attorney’s fees.
At oral argument the Court was informed by counsel for the Securities
Counsel for the SEC states in brief and oral argument that a substantial portion of the time of Trustee’s Attorney Wolff has been engaged in fighting with opposing counsel and estimates that as much as one fourth to one third of the time involved of the hours for which fees have been awarded to Trustee’s Attorney Wolff have been so involved.
We are informed that the fees involved in the present appeals have been paid to Trustee’s attorney despite the pendency hereof. That being true, Trustee’s Attorney Wolff has received $149,603 as interim fee allowances for the years 1969 and 1970. Interim fees allowed for 1969 of $60,583 in the District Court were not appealed. Though we have serious misgivings about the propriety of the allowance of this very large award for 1969, we will not at this time interfere with the award, because of the action we are now taking to limit the amount of interim fees which the District Judge may allow to Trustee’s attorney. Accordingly, we direct the District Court not to award any amount of interim fees now or in the future for Trustee’s attorney in any one year which exceeds $30,000, final fees to await the conclusion of the reorganization. This yearly limitation shall apply as well to the year 1970 and the awards of fees for that year which are the subject of these appeals. We find that the total interim awards of $89,020 for 1970 were excessive and must be reduced. We, therefore, reduce the total awards for 1970 from the sum of $89,020 to a total of $30,000 and the judgments appealed from are reversed and modified to that extent. The District Judge shall immediately take all necessary steps to require a return to the bankruptcy estate from Trustee’s Attorney Wolff of the excess fees paid for 1970 of $59,020, and is directed to enter forthwith all necessary orders or decrees to enforce the return of said funds.
Reversed, modified and remanded with directions.
. For a detail of the numerous appeals from this bankruptcy proceeding, see Protective Committee v. Anderson, 390 U.S. 414, 88 S.Ct. 1157, 20 L.Ed.2d 1 (1968).
. The Clerk of this Court, at our direction, confirmed that there is pending in the District Court, a petition of Trustee’s Attorney Wolff for additional interim attorney’s fees, for 1971, in the amount of $92,565.
. Both the District Court and Trustee’s attorney misinterpret the role of the Securities and Exchange Commission in those proceedings. SEC is not an interloper herein. It has a statutory responsibility and apparently is discharging it. See 11 U.S.C. §§ 572, 60S.
. See Mass. Mutual Life Ins. Co. v. Brock, 5 Cir., 1968, 405 F.2d 429; In re Keystone Realty Holding Co., 3 Cir., 1941,
070rehearing
ON PETITION FOR REHEARING AND PETITION FOR REHEARING EN BANC
The Petition for Rehearing is denied and no member of this panel nor Judge in regular active service on the Court having requested that the Court be polled on rehearing en banc (Rule 35 Federal Rules of Appellate Procedure; Local Fifth Circuit Rule 12) the Petition for Rehearing En Banc is denied.
Reference
- Full Case Name
- In the Matter of TMT TRAILER FERRY, INC., Debtor. PROTECTIVE COMMITTEE FOR INDEPENDENT STOCKHOLDERS OF TMT TRAILER FERRY, INC. v. Irving Mark WOLFF, P. A., Fee and Thomas J. Kirkland, Trustee, Appellees In the Matter of TMT TRAILER FERRY, INC., Debtors. PROTECTIVE COMMITTEE FOR INDEPENDENT STOCKHOLDERS OF TMT TRAILER FERRY, INC. v. Thomas J. KIRKLAND, Trustee, Ray C. Muller
- Cited By
- 1 case
- Status
- Published