Securities and Exchange Commission v. United Financial Group, Inc., R. J. Wolf, Claimant-Appellant v. William E. Tassock, Receiver

This is an appeal from an order and judgment of the district court denying appellant Wolf’s claim for attorney’s fees. Appellee Tassock is the receiver, appointed by the court below, of a group of companies which will be referred to as the United Financial Group (“UFG”).

In 1972, shortly after commencement of the receivership, a group of investors filed a class action against UFG and its former officers in the California Superior Court in Marin County, entitled Wenzoski, et al. v. Pollock, et al., (California Superior Court, Civil No. 62826). Wolf was retained by UFG’s former chief executive officer as counsel for defendants. Tassock objected to Wolf’s acting as attorney for defendants; subsequently he declined their tender of the defense of the action. At the start of the trial in February 1973, Wolf sought to withdraw as defense counsel but, upon objection by plaintiffs, was denied leave to do so by the California court.

Efforts by Tassock and the Securities and Exchange Commission to enjoin prosecution of Wenzoski did not succeed. The district court eventually issued orders permitting the action to proceed on the condition that any judgment in that action not interfere with…