In a bankruptcy proceeding in the Southern District of California, Francis F. Quittner, Quittner & Stutman, Milford S. Zimmerman, and Zimmerman, Kelly & Thody, hereinafter called the appellants, were appointed as special counsel for the receiver to represent him in contesting the will of Lottie Barry in a proceeding then pending in the Superior Court of Los Angeles County. Pri- or to the appointment by the referee the appellants were informed that their compensation would be contingent upon recovery. Approximately six months later the will contest was settled, and the sum of $15,000 was paid into the bankrupt estate therefrom. The appellants filed a petition in the bankruptcy proceeding asking for the allowance of attorneys’ fees on a contingent basis of 33%% of the amount recovered. In the same bankruptcy proceeding Bertram S. Harris, attorney for certain petitioning creditors therein, filed a petition asking that he be allowed $3000 attorney’s fees and an additional $5000 for extraordinary services alleged to have been performed by him for the benefit of the estate. The referee, after a hearing, allowed to appellants approximately 25% of the amount recovered, to-wit, $3,767, and allowed Mr. Harris and his associate the sum of $1,250 as fees for representing the petitioning creditors and intervenors. The order providing for attor neys’ fees to appellants and to Harris was dated November 21, 1957. On November 29, Harris filed a petition for the review of this order. He asserted that he had performed substantial services for the bankrupt estate, that he had been largely instrumental in obtaining a settlement of the will contest, and that he should have had a greater allowance for attorney’s fees. He ended his petition ¿or review as follows:

When the matter came before the district court on April 15, 1958, the record shows that the following proceedings occurred:

Thereafter, Milford S. Zimmerman and Francis F. Quittner testified as witnesses before the court.

On March 31, 1959, almost one year later, the district judge filed a written order, 172 F.Supp. 375 , reversing the referee’s order and denying appellants any fees as special counsel. He reviewed the objections to appellants’ fees that Harris had set forth in his petition for review of the referee’s order and then stated:

On the basis of this finding the district judge ruled that appellants were entitled to no compensation for their services.

On being informed of the order of the district judge, the appellants promptly filed a motion for a rehearing and reconsideration of the court’s order of March 31, 1959, setting forth among other things the following:

On June 8, 1959, at the hearing on the motion for a rehearing and reconsideration of the district court’s order, this motion was supported by affidavits of Mr. Quittner, an affidavit of Mr. Zimmerman and an affidavit of Mr. Scheinman, the attorney for the special administrator of the estate of Lottie Barry. The motion was denied by the district court in a written order dated August 11, 1959, 175 F.Supp. 726 . An appeal was taken by appellants to this court from the order of the court dated March 31, 1959, and from the order denying a rehearing dated August 11, 1959.

Appellants’ main contention is that the district court based its decision upon a ground not raised in the petition for a review of the referee’s order but rather upon a ground that was brought up upon the court’s own motion. They complain that at no time during the hearing had any party claimed that they had misrepresented to the referee the value and extent of their services and that during the period of almost a' year between that hearing and the order of the court they had no intimation of any kind that this issue was being considered by the court. When on March 31, 1959, the court filed its opinion basing the decision upon a finding that the appellants had falsely represented to the referee the value and extent of their services, they promptly filed a petition for rehearing asking for the right to have the referee file an affidavit setting forth exactly what information they had given to him at the time of their appointment as special counsel. They contended that they could show that in no way had they misrepresented to the referee or to anyone else the value and extent of their services.

We realize that the district judge has a large degree of discretion in determining what, if any, allowance for fees should be granted to attorneys and whether or not to grant a rehearing. However, appellants contend that in denying their applications for fees and a rehearing the court has made findings that they have been guilty of misrepresenting facts to the referee and to the court. They contend that these findings of misrepresentation were made by the court although no such contention was made in the petition for a review. Appellants’ counsel point out that appellants are reputable members of the State Bar of California and that they have in effect been branded as dishonest without having had an opportunity to defend themselves.

Under the circumstances of this case and for the purpose of giving appellants an opportunity to answer the charges made against them, we hold that the denial of appellants’ petition for a rehearing was an abuse of discretion. The orders of the district court are reversed, and the case is remanded for action not inconsistent with this opinion.

. It was recognized that if the will contest should be successful substantial funds would be added to the bankrupt estate. . No objections were filed before the referee to appellants’ petition for attorneys’ fees. . The referee allowed Mr. Harris compensation only for Ms services as attorney for the petitioning creditors. In so ruling, bis order contained the following language: “Mr. Harris petitioned for the allowance to him of $3,000.00 for services as attorney for petitioning creditors and $5,000.00 for extraordinary services rendered for the benefit of the estate. On two separate occasions the receiver-trustee petitioned the court for leave to employ Mr. Harris as attorney for the estate. Both petitions were denied for the reason that Mr. Harris represented parties who asserted interests adverse to the estate. If the receiver-trustee solicited and accepted Mr. Harris’ services, he did so without authority. In the one matter in which the estate recovered $15,-000.00 from the estate of Mrs. Barry, the receiver-trustee was represented by competent special counsel and whatever aid Mr. Harris gave in connection with this matter was as a volunteer.” . A similar claim that appellants represented adverse interests had been made by Harris before the referee and had been rejected. . See footnote 3, supra. . Richard II, Act I, Scene 1.