Southwestern Media, Inc. v. Albert M. Rau and Henry Jacobowitz

This is an appeal from the district court’s judgment enforcing the bankruptcy court’s award of compensation to appellees, receiver-trustee Albert M. Rau and his attorney Henry Jacobowitz. Appellee Jacobowitz moves to dismiss the appeal on the basis that the appellant named in the notice of appeal is Southwestern Media, Inc. (Southwestern Media), an Arizona corporation, which has no standing to appeal because it was not a party to the proceedings before the district court. Plaintiffs in the district court case were a group of minority shareholders, Southwestern Media Group (SWM Group). We deny the motion to dismiss, affirm the award to Rau, and reverse and remand the award to Jacobowitz.

FACTS

Southwestern Media, was formed in 1976 to buy and operate a radio station in Phoenix, Arizona. Southwestern Media purchased from KBUZ, Inc. (KBUZ) two broadcasting licenses and broadcasting equipment for $1,200,000, paying $200,000 down and issuing to KBUZ a promissory note for the $1,000,000 balance. The note was secured by the transferred assets, and the principal shareholders personally guaranteed $400,000 of the deferred purchase price.

On April 6, 1978, Southwestern Media filed a…