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 Thirty-Ninth Interim Application for
Allowance of Compensation and Expenses for Receiver and
Counsel for Receiver ("Thirty-Ninth Application")
(Dkt. No. 951), seeking approval of $45, 236.50 in fees, and
payment of the 20% holdback amount of $9, 047.30. 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 Thirty-Ninth Application be GRANTED in part, and DENIED
in part, the Receiver's fees in the amount of $44, 892.80
be approved, and the Receiver be AWARDED the holdback in the
amount of $8, 703.60.
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 for payment of the Receiver's
fees and expenses. Dkt. No. 287. The Administrative Order
approved hourly rates for individual attorneys and paralegals
working for the Receiver. Those rates have been modified by
several orders; most recently by Order dated May 6, 2010.
Dkt. No. 865.
Thirty-Ninth Application, the Receiver seeks approval of $45,
236.50 in fees for the time billed from July 1, 2014 through
March 31, 2016. The Receiver has been reimbursed for eighty
percent of his fees billed under this application ($36,
189.20), together with the full amount of claimed expenses,
and he now seeks approval of the entire claim with an award
of the holdback in the amount of $9, 047.30. Dkt. No. 951.
hourly rates charged in the Thirty-Ninth Application are
consistent with those approved by the Court's Order dated
May 6, 2010, granting the Receiver's Fourth Motion to
Modify the Administrative Order. Dkt. No. 865. Thus, I find
that the Receiver is requesting compensation at a reasonable
Receiver is billing for 251.8 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 fee application invoices dated August 5, 2014,
September 5, 2014, November 4, 2014, November 24, 2014,
February 4, 2015, March 9, 2015, May 7, 2015, July 13, 2015,
August 1, 2015, September 10, 2015, November 16, 2015,
January 15, 2016, February 29, 2016 and April 15, 2016 (Dkt.
No. 951 Ex. A) each contain entries for time spent reviewing
bills for compliance with billing guidelines. The court does
not take issue with time spent preparing a fee application.
See American Canoe Association, Inc v. U.S.E.P.A.,
138 F.Supp.2d 722, 745-747 (E.D. Va. 2001). However, the
court will not approve as a reimbursable amount time spent to
comply with the reasonable billing guidelines established for
the orderly administration of this fee process. Accordingly,
these bills should be reduced by the total of 2.2 hours
billed at various rates ranging from $110.00 to $311.00 per
hour, in the total amount of $343.70.
foregoing reasons, I recommend that the court enter an order
GRANTING in part, and DENYING in part the Thirty-Ninth
Application, approve the Receiver's fees in the amount of
$44, 892.80 and expenses. The Receiver has been paid $36,
189.20 of ...