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

Filing 686

Fourteenth ORDER Regarding Fee Applications. The Court GRANTS fee applications (Dkt. ## 683 , 684 , 685 ) and approves on an interim basis application the following amounts for the January 1, 2019, through March 31, 2019. (See Order for details) Signed by Judge James L. Robart. (SWT)

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UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE

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SECURITIES AND EXCHANGE
COMMISSION,

CASE NO. C15-1350JLR

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Plaintiff,
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v.
PATH AMERICA, LLC, et al.,

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FOURTEENTH ORDER
REGARDING FEE
APPLICATIONS

Defendants and
POTALA SHORELINE, LLC, et al.,

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Relief Defendants.

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Before the court are three quarterly fee applications: (1) the fourteenth interim fee
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application of Receiver Michael A. Grassmueck’s (“the Receiver”) general counsel,
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Allen Matkins Leck Gamble Mallory & Natsis, LLP (“Allen Matkins”), for $80,936.55 in
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fees and $2,955.49 in costs (Dkt. # 683); (2) the fourteenth interim fee application of the
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Receiver’s forensic accountant, Financial Forensics, for $9,396.00 in fees (Dkt. # 684);
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ORDER - 1

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and (3) the eleventh interim fee application of the Receiver’s tax accountants, Peterson

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Sullivan LLP (“Peterson Sullivan”), for $43,788.50 in fees and $22.50 in costs (Dkt.

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# 685). As described below, the court GRANTS the fee applications of Allen Matkins,

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Financial Forensics, and Peterson Sullivan (Dkt. ## 683-85).

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The Receiver’s counsel filed all of the foregoing motions on May 15, 2019, and

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properly noted them for the court’s consideration on May 31, 2019. (See id.) Any

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opposition to the motions was due no later than Monday, May 27, 2019. See Local Rules

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W.D. Wash. LCR 7(d)(3) (“Any opposition papers shall be filed and served no later than

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the Monday before the noting date.”). No party filed an opposition to any of the motions.

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(See generally Dkt.)
The court finds that (1) the fees and costs requested in each of the fee applications

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listed above are reasonable and necessary, (2) the notice of the fee applications was

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appropriate, (3) the fee applications are made in accordance with the Order Appointing

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Receiver (see OAR (Dkt. # 88) ¶¶ 55-59), and (4) the services provided were of

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substantial benefit to the Receivership Estate. Each of the foregoing applicants seeks a

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distribution of only 80% of the approved fees and costs at this time. (See id. ¶ 58

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(“Quarterly Fee Applications may be subject to a holdback in the amount of 20% of the

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amount of fees and expenses for each application filed with the Court.”); see also Dkt.

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# 683 at 2; Dkt. # 684 at 3; Dkt. # 685 at 4.)

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Accordingly, the court GRANTS the fee applications (Dkt. ## 683-85) and

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APPROVES on an interim basis the following application amounts for the period of

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January 1, 2019, through March 31, 2019:

ORDER - 2

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Applicant:

Fees:

Costs:

Total Allowed:

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Allen Matkins

$80,936.55

$2,955.49

$83,892.04

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Financial Forensics

$9,396.00

$00.00

$9,396.00

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Peterson Sullivan

$43,788.50

$22.50

$43,811.00

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Finally, the court AUTHORIZES the Receiver to disburse the following
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percentages of the foregoing approved fees and costs at this time:
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(1)

$67,113.63 to Allen Matkins, which is 80% of the approved fees and costs;

(2)

$7,516.80 to Financial Forensics, which is 80% of the approved fees and

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costs; and
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(3)

$35,048.80 to Peterson Sullivan, which is 80% of the approved fees and

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costs.
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Dated this 3rd day of June, 2019.
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A

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JAMES L. ROBART
United States District Judge

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ORDER - 3