Judge: Thomas D. Long, Case: BC579623, Date: 2023-05-11 Tentative Ruling

Case Number: BC579623    Hearing Date: January 30, 2024    Dept: 48

SUPERIOR COURT OF THE STATE OF CALIFORNIA

FOR THE COUNTY OF LOS ANGELES - CENTRAL DISTRICT

On August 8, 2018, the Court approved Receiver Byron Z. Moldo retaining Dapeer, Rosenblit & Litvak, LLP (“Litvak”) for litigation against the law firm Loeb and Loeb, LLP (“Loeb”) for professional negligence and breach of fiduciary duty in Loeb’s prior representation of the Sage Entities in the Receivership Estate.

On May 3, 2022, the Receiver and Loeb participated in a mediation and were able to reach a settlement in which Loeb agreed to pay the Receiver $450,000.00 and withdraw the Loeb Claim in the Receivership.  (Moldo Decl. ¶¶ 12-13.)

The Fee Agreement between the Receiver and Litvak provided that in addition to being paid a $50,000.00 nonrefundable retainer, Litvak would be paid a contingency fee of 40% of any recovery in the action.  (Moldo Decl. ¶ 9 & Ex. C.)  The Fee Agreement was unclear as to compensation for the withdrawal of the Loeb Claim, which resulted in substantial savings to the Receivership Estate.  (Moldo Decl. ¶ 15.)  Saving money does not constitute collecting or receiving money, and even if it did, Litvak and the Receiver agreed that a 40% contingency fee is too high.  (Moldo Decl. ¶ 16.)  After negotiating the matter, the Receiver and Litvak agreed that Litvak will receive $225,000.00 total for legal services provided regarding the Loeb claim—40% of the $450,000.00 recovery, as well as approximately 5% of the savings from the withdrawal of the Loeb Claim.  (Moldo Decl. ¶ 17.)

On December 19, 2023, the Receiver moved for approval of the payment of attorney fees.

The amount of attorney fees is reasonable in light of the retainer agreement and the uncertainty of how to compensate for the savings achieved through dismissal of the Loeb Claim.  Additionally, no party opposed the motion.

The motion for order approving payment of attorney fees is GRANTED.

Moving party to give notice.

Parties who intend to submit on this tentative must send an email to the Court at SMCDEPT48@lacourt.org indicating intention to submit.  If all parties in the case submit on the tentative ruling, no appearances before the Court are required unless a companion hearing (for example, a Case Management Conference) is also on calendar.

         Dated this 30th day of January 2024