Securities and Exchange Commission v. Path America, LLC et al

Filing 344

SECOND ORDER REGARDING FEE APPLICATIONS by Judge James L. Robart. (AD)

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UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE

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SECURITIES AND EXCHANGE
COMMISSION,

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Plaintiff,

CASE NO. C15-1350JLR
SECOND ORDER REGARDING
FEE APPLICATIONS

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v.
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PATH AMERICA, LLC, et al.,
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Defendants.
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Before the court are eight fee applications: (1) the second quarterly application for
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compensation for Receiver Michael A. Grassmueck’s (“the Receiver”) immigration
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counsel, Baker Donelson, in the amounts of $18,873.00 in fees and $5.25 in costs, which
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seeks an order authorizing disbursement of 80% of the total requested fees and costs
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(Dkt. # 290); (2) the second quarterly application for compensation for the Receiver’s
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local counsel, Karr Tuttle Campbell, P.S. (“Karr Tuttle”), in the amounts of $56,672.00 in
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fees and $1,543.80 in costs, which seeks an order authorizing disbursement of 80% of the
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ORDER- 1

1 total requested fees and costs (Dkt # 292); (3) the second interim fee application of
2 Financial Forensics, the Receiver’s forensic accountants, in the amounts of $45,361.00 in
3 fees and $489.43 in expenses, which seeks an order authorizing disbursement of 80% of
4 the requested fees and expenses (Dkt. # 295); (4) the second interim fee application of the
5 Receiver’s general counsel, Allen Matkins Leck Gamble Malory & Natsis, LLP (“Allen
6 Matkins”), in the amounts of $346,172.85 in fees and $2,087.20 in costs, which seeks an
7 order authorizing disbursement of 80% of the requested fees and costs (Dkt. # 297); (5)
8 the second interim fee application of McCullough Hill Leary, PS (“McCullough”), the
9 Receiver’s counsel for the receivership entity Potala Tower Seattle, LLC, in the amount
10 of $3,696.50 in fees, which seeks an order authorizing disbursement of 80% of the
11 requested fees (Dkt. # 299); (6) the first interim fee application of Johns Monroe
12 Mitsunaga Kolouskova PLLC (“JMMK”), counsel for Relief Defendant Potala Village
13 Kirkland, LLC, in the amounts of $13,972.50 in fees and $128.46 in expenses, which
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15 # 301); (7) the second interim fee application of the Receiver in the amounts of
16 $104,231.50 in fees and $3,036.44 in costs, which seeks an order authorizing
17 disbursement of 80% of the requested fees and costs (Dkt. # 304); and (8) the first interim
18 fee application of Caron Architecture, LLC (“Caron”), contracted architect for Relief
19 Defendants Potala Shoreline, LLC, and Potala Village Kirkland, LLC, in the amounts of
20 $25,688.00 in fees and $606.62 in expenses, which seeks an order authorizing
21 disbursement of 80% of the requested fees and expenses (Dkt. # 306).
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ORDER- 2

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No party has filed an opposition to any of the foregoing fee applications. (See

2 generally Dkt.) Plaintiff Securities and Exchange Commission has filed a statement of
3 non-opposition to the fee applications. (SEC Resp. (Dkt. # 329) at 2.)
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The court finds that the fees and costs represented in each of the foregoing fee

5 applications are reasonable and necessary, notice of the fee applications was appropriate,
6 the fee applications are in accord with the Order Appointing Receiver (Order (Dkt. # 88)
7 ¶¶ 55-59), and the services provided were of substantial benefit to the estate.
8 Accordingly, the court GRANTS the fee applications listed above (Dkt. ## 290, 292, 295,
9 297, 299, 301, 304, 306) and APPROVES on an interim basis the following application
10 amounts:
11 Applicant:
12 Baker Donelson
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Period:

January 1, 2016,
through March
31, 2016
Karr Tuttle
January 1, 2016,
through March
31, 2016
Financial
January 1, 2016,
Forensics
through March
31, 2016
Allen Matkins
January 1, 2016,
through March
31, 2016
McCullough
January 1, 2016,
through March
31, 2016
JMMK
December 7,
2015, through
March 31, 2015
Receiver Michael January 1, 2016,
A. Grassmueck
through March
31, 2016
ORDER- 3

Fees:

Costs:

Total:

$18,873.00

$5.25

$18,878.25

$56,672.00

$1,543.80

$58,215.80

$45,361.00

$489.43

$45,850.43

$346,172.85

$2,087.20

$348,260.05

$3,696.50

$00.00

$3,696.50

$13,972.50

$128.46

$14,100.96

$104,231.50

$3,036.44

$107,267.94

1 Applicant:

Period:

Fees:

Costs:

Total:

2 Caron

December 1,
2015, through
March 31, 2016

$25,688.00

$606.62

$26,294.62

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The court further ORDERS that the Receiver is authorized to disburse 80% of the

5 foregoing approved fees and costs at this time to the foregoing respective applicants, as
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(1) The court AUTHORIZES the Receiver to disburse $15,102.60 to Baker

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Donelson.
(2) The court AUTHORIZES the Receiver to disburse $46,572.64 to Karr Tuttle.
(3) The court AUTHORIZES the Receiver to disburse $36,680.34to Financial

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Forensics.
(4) The court AUTHORIZES the Receiver to disburse $278,608.04 to Allen

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Matkins.

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(5) The court AUTHORIZES the Receiver to disburse $2,957.20 to McCullough.

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(6) The court AUTHORIZES the Receiver to disburse $11,280.77 to JMMK.

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(7) The court AUTHORIZES the Receiver to disburse $85.814.35 to the Receiver.

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(8) The court AUTHORIZES the Receiver to disburse $21,035.70 to Caron.

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Dated this 3rd day of June, 2016.

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A

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JAMES L. ROBART
United States District Judge

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ORDER- 4