The Official Creditors' Committee of Fox Markets, Inc. v. Walter Ely and Stuart L. Kadison

On June 7, 1963, Walter Ely and Stuart L. Kadison, appellees (claimants), filed in the United States District Court for the Southern District of California, Central Division, an application for the allowance of attorney fees in the amount of $200,000 ($100,000 for each claimant), for services rendered as associate counsel for the trustee in a proceeding for reorganization of Fox Markets, Inc. (debtor), under Chapter X of the Bankruptcy Act ( 11 U.S.C.A. § 656 ).

Objections to the claim were interposed by the Official Creditors’ Committee of the debtor corporation (appellants). On September 4, 1963, after extended hearings, the Court made its findings and conclusions and entered its order awarding each of the claimants the sum of $85,000 as and for his reasonable attorney fees for services rendered to the Trustee. From this order the Creditors’ Committee appeals.

The jurisdiction of this Court is based upon Sec. 250 of the Bankruptcy Act ( 11 U.S.C.A. § 650 ), and that of the District Court upon Sec. 241 of the same Act ( 11 U.S.C.A. § 641 ). The latter section provides, so far as herein material:

The ultimate question for decision is whether the allowances made by the District…