United States District Court, W.D. Virginia, Charlottesville Division
Securities and Exchange Commission, Plaintiff, represented by
David J. Medow, SECURITIES AND EXCHANGE COMMISSION, Jean
Barrett Hudson, United States Attorneys Office & John Edward
Birkenheier, SECURITIES AND EXCHANGE COMMISSION.
F. June, Movant, represented by Edward Bennett Lowry, Michie,
Hamlett, Lowry, Rasmussen & Tweel, PLLC.
L Dowdell, Defendant, represented by Andrew M. Friedman,
Squire Patton Boggs (US) LLP & Robert D. Luskin, Squire
Patton Boggs (US) LLP.
Dowdell, Defendant, represented by Juliet D. Hiznay, FOLEY &
LARDNER, Bryan B. House, Foley & Lardner, LLP & Michael D.
Wolk, FOLEY & LARDNER.
REPORT AND RECOMMENDATION
S. BALLOU, Magistrate Judge.
the Court is the Fourteenth Interim Application for Allowance
of Compensation and Expenses for Accountant to the Receiver
("Fourteenth Application") (Dkt. No. 953), seeking
approval of $9, 407.50 in fees, reimbursement of expenses in
the amount of $185.37, and payment of the 20% holdback amount
of $1, 881.50. This matter is before me by referral pursuant
to 28 U.S.C. Â§ 636(b)(1) and (b)(3), directing me to submit
to the court my proposed findings of fact and recommendations
regarding the application For the reasons set forth below, I
recommend that the Fourteenth Application be GRANTED in part
and DENIED in part, and the Accountant's fees in the
amount of $8, 273.50 be approved. The Receiver should be
AWARDED the holdback in the amount of $747.50.
12, 2002, the Court entered an Order Directing Appointment of
Receiver of Defendants Terry L. Dowdell, Dowdell, Dutcher &
Associates, Inc. and Emerged Market Securities, DE-LLC. Dkt.
No. 243. The Order provides that all compensation for the
Receiver and any personnel retained by the Receiver are to be
paid out of the assets in which defendants held a legal or
equitable interest. Dkt. No. 243, p.4. Subsequent Orders
appointed the Receiver over defendants Authorized Auto
Service, Inc. and Vavasseur Corporation. Dkt. Nos. 288, 381.
September 12, 2002, the Court entered an Order
("Administrative Order") establishing
administrative procedures. Dkt. No. 287. The Administrative
Order approved the employment of the Accountant by the
Receiver and approved hourly rates for the Accountant's
staff. Those rates have been modified by several orders; most
recently by Order dated May 6, 2010. Dkt. No. 865.
Fourteenth Application, the Accountant seeks approval of $9,
407.50 in fees for the time billed from January 1, 2014
through December 31, 2014. The Accountant has been reimbursed
for eighty percent of its fees billed under this application
($7, 526.00), together with the full amount of claimed
expenses, and it now seeks approval of the entire claim with
an award of the holdback in the amount of $1, 881.50. Dkt.
hourly rates charged in the Fourteenth Application are
consistent with those approved by the Court's May 6, 2010
Order granting the Receiver's Fourth Motion to Modify the
Administrative Order. Dkt. No. 865. Thus, I find that the
Accountant is requesting compensation at a reasonable hourly
Accountant is billing for 52.60 hours of work. In light of
the work performed and the progress achieved, I find the
hours charged to be reasonable except as noted below.
1. The Accountant seeks compensation for 7.2 hours spent to
collect data for the Thirteenth Interim Fee Application, to
prepare the schedules and the fee application and to review
the application with the Receiver's counsel. Having
reviewed the Accountant's past thirteen interim fee
applications, I find that the applications are largely
repetitive, with a form cover letter and appendices that
simply require plugging in the appropriate numbers. I find
that 7.2 hours is not a reasonable amount of time to prepare
the Accountant's fee application, and instead approve
half of the time sought, or 3.6 hours to prepare the fee
application. Thus, I reduce the total amount billed for the
fee application by 3.6 hours or $1, 134.00 (3.6 hours at
$315.00 per hour).
foregoing reasons, I recommend that the court enter an order
GRANTING in part and DENYING in part the Fourteenth
Application, and approving the Accountant's fees in the
amount of $8, 273.50, and expenses. The Accountant has been
paid $7, ...