In re Solar Mfg. Corp., 10382
| Decision Date | 28 June 1951 |
| Docket Number | No. 10382,10387.,10382 |
| Citation | 190 F.2d 273 |
| Parties | In re SOLAR MFG. CORP. (two cases). |
| Court | U.S. Court of Appeals — Third Circuit |
George Zolotar, New York City, for Securities & Exchange Commission.
James D. Carpenter, Jersey City, N. J., (Samuel M. Coombs, Jr., Jersey City, N. J., on the brief), for trustees of debtor and for counsel for trustees.
Before GOODRICH, STALEY and HASTIE, Circuit Judges.
These appeals raise objections to two orders entered by the District Court in proceedings involving reorganization of the Solar Manufacturing Company. One order appealed from is that of the district judge refusing to order the reduction of the number of trustees from two to one. The other appeal raises objections to the granting of interim allowances to the trustees and their counsel.
We start with the undisputed premise that the matters in question are for the discretion of the district judge.1 Such discretion is particularly appropriate in this type of case which necessarily involves passing upon ever so many administrative matters in the course of a reorganization proceeding. No appellate court with the paper record before it, even though advised by the most eloquent of counsel, can have the feel of a case as the judge who has lived with it from week to week and month to month.
On December 28, 1950 the district judge made allowances to the two trustees of $8,000 each. These interim allowances covered a period from December 1, 1949 to November 24, 1950. Prior to that, in December, 1949, there had been an allowance of $25,000 ($12,500 to each). The district court also made an interim allowance to counsel of $15,000. Counsel had not received any allowance prior to this for he was appointed only on November 16, 1949.
If we were to exercise judgment in the first instance it is likely that we should have made the allowance to counsel and not to the trustees. Counsel did a great deal of work during the year 1950 and he should not be compelled to wait too long before receiving some payment for it.
The trustees, on the other hand, ceased to run a business when the plant properties of Solar were sold. Their task became thereupon much simpler. It was to process claims, make payments of assets as ordered by the court and advise counsel concerning certain important litigation now instituted. There was a showing however that the trustees had regularly expended a very considerable amount of time during the period in question on the affairs of this debtor. No one denies that the trustees are capable. No one denies that progress in the winding up of Solar's affairs has been made, although the appellant thinks it is too slow. The continuous nature of the trustees' activity brings the case within the description we gave in In re McGann Mfg. Co., 3 Cir., 1951, 188 F.2d 110,2 for circumstances justifying interim allowances, though there is no business being run by the trustees. Our conclusion is that we are not here entitled to substitute our discretion for that of the District Court and the allowances provided will stand.
However, in affirming the "interim" allowance we wish to guard against the impression that we have concluded that it is only a small payment on account. There are a good many hours of work asserted to have been done by the trustees. We do not know whether the work was good work and necessary work nor how much should be paid for it. This is an open question at this time. The SEC advises us that it is going to contest the value of the trustees' services when the case is up for final allowances. That question is open; we do not make any commitment upon it at this time.
With regard to the denial...
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In re Imperial" 400" National, Inc.
...on an almost daily basis. In such circumstances, this court has held that interim allowances may be appropriate. In re Solar Mfg. Corp., 190 F.2d 273 (3rd Cir. 1951); see In re McGann Co., 188 F.2d 110, 112 (3rd Cir. 1951); In re Keystone Realty Holding Co., 117 F.2d 1003, 1006 (3rd Cir. 19......
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...the pendency of the bankruptcy proceedings. Interim awards of compensation, which are within the court's discretion, In re Solar Manufacturing Corp., 190 F.2d 273 (3d Cir.), cert. denied sub nom. McGirl v. Mintz, 342 U.S. 893, 72 S.Ct. 200, 96 L.Ed. 669 (1951), are to be considered by the c......
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In re Solar Mfg. Corp.
...out that "* * There is now no business to run. * * The business, except for distribution of the assets * * * is legal business * * *" 190 F.2d 273, 274. Our conclusion from this is that there was every reason to anticipate, and the trustees were clearly on notice, that no large additional a......
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In re American Intern. Airways, Inc.
...of the bankruptcy proceedings." Id. at 306. Interim awards of compensation are within the Court's discretion. In re Solar Manufacturing Corp., 190 F.2d 273 (3d Cir.1951), cert. denied sub nom. McGirl v. Mintz, 342 U.S. 893, 72 S.Ct. 200, 96 L.Ed. 669 Interim awards of compensation are to be......