United States v. United Foam Corporation

United Foam Corporation appeals from the entry of two trust orders in the District Court in connection with the divestiture of its Compton, California facility. That divestiture is the result of a consent decree entered in settlement of a civil antitrust complaint filed by the United States against United Foam in 1972. In the consent decree United Foam agreed to divest itself of the Compton facility within 24 months. In May, 1975, the divestiture had not been accomplished, and the District Court appointed Somerset Management Group as trustee of the Compton plant. The trustee was instructed to sell the assets of the Compton facility, and to manage it in the interim.

In November of 1977 a plan for divestiture was submitted to the District Court, with a sale price of $415,000. The Court confirmed the sale at that price. In a separate order the District Court also awarded the trustee compensation in the amount of $234,715, and $65,725 in attorneys’ fees. Those orders are the subject of this appeal.

United Foam contends that the District Court abused its discretion in compensating the trustee at a rate of $115 per hour and the trustee’s attorneys at a rate of $135 per hour. United…