People v. Riverside University

Appellant (LeMoyne S. Badger) was appointed as receiver in an action brought by the People against Riverside University and certain of its officers to enjoin them from engaging in unlawful and fraudulent business practices and to secure compliance with terms of the charitable trust with which its assets were impressed. The receiver appeals from an order fixing his fees and granting him a conditional discharge, the condition being that defendants have not, within 90 days, commenced proceedings against him (either in the present action or in a separate suit) to recover damages for sales of personal property at less than fair market value. The receiver urges that the court erred in failing to give him an unqualified discharge and abused its discretion in failing to fix his fees in the amount requested.

The following is a background of the events leading to the present appeal. We shall refer to the pertinent facts in greater detail in our ensuing discussion of the particular legal issues to which they relate.

On May 5, 1971, under the authority vested in him by Corporations Code section 9505, the Attorney General filed the underlying action against Riverside University and…