Melikian v. Aquila, Ltd.

63 Cal. App. 4th 1364
CourtCalifornia Court of Appeal
DecidedMay 19, 1998
DocketE018870
StatusPublished

This text of 63 Cal. App. 4th 1364 (Melikian v. Aquila, Ltd.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Melikian v. Aquila, Ltd., 63 Cal. App. 4th 1364 (Cal. Ct. App. 1998).

Opinion

63 Cal.App.4th 1364 (1998)

RAYMOND MELIKIAN et al., Plaintiffs and Respondents,
v.
AQUILA, LTD., Defendant and Appellant; TIMOTHY R. BARTLETT et al., Interveners and Appellants.

Docket No. E018870.

Court of Appeals of California, Fourth District, Division Two.

May 19, 1998.

*1366 COUNSEL

Rosario Perry and Douglas S. Phillips for Defendant and Appellant.

Knapp, Petersen & Clarke and Cyril Czajkowskyj for Interveners and Appellants.

Kloster, Ruddell, Hornburg, Cochran, Stanton & Smith, Philip T. Hornburg, Thomas, Snell, Jamison, Russell and Asperger, David M. Gilmore and Marcus D. Magness for Plaintiff and Respondent.

OPINION

GAUT, J. —

1. Introduction

These two separate but related appeals arise out of a partition action involving the sale of real property by a receiver. In the first appeal, defendant and appellant Aquila, Ltd., a California limited partnership (Aquila), one of the former owners of the subject real property, argues that the court should not have awarded the receiver, William A. Benneyan (Benneyan), both an hourly fee and a fee based on 4 percent of the purchase price of the *1367 property. In the second appeal, intervener and appellant Bartlett[1] contends that the court should have awarded part of the broker's commission for the sale of the property to Bartlett rather than all of the commission to another broker, J. John Anderholt (Anderholt).

Both appeals are taken from the court's final order of July 26, 1996, approving payment of fees to the receiver of $217,867.07[2] and payment of a 5 percent commission to Anderholt of $252,500 and denying payment of a commission to Bartlett. Bartlett's appeal is also taken from the court's order denying injunctive relief on September 13, 1996.

We affirm the court's order in part and reverse in part for the reasons discussed below.

2. The Aquila Appeal

The first amended complaint for partition was filed on December 1, 1994. Defendant Aquila filed an answer on May 4, 1995. On July 24, 1995, the Melikian plaintiffs and defendant Aquila stipulated to the appointment of Benneyan as a receiver for the subject property. On August 10, 1995, the court ordered his appointment pursuant to said stipulation. On August 31, 1995, the receiver filed a petition for instructions, including the matter of his fees. In the petition, the receiver requested fees of $125 an hour and compensation on the sale of the property in the amount of 4 percent of the gross sale price. The request was based on a previous written agreement for compensation in which Benneyan was to receive a fee of $8,000 per month and a commission of 4.5 percent on the sale of the property. No opposition was filed to the receiver's petition. On September 11, 1995, the court entered an order confirming that the receiver's fees would include compensation of $125 per hour plus the sum of 4 percent of the purchase price of the subject property.

The property was sold for the price of $5,050,000 to the highest bidder, Apollo, Inc., after confirmation at a court hearing conducted on March 8, 1996. Thereafter, on March 27, 1996, Aquila filed a motion to amend, correct, or modify the court order of September 11, 1995, by removing the provision for payment to the receiver of 4 percent of the purchase price. In its motion, Aquila maintained that the 4 percent fee had been included in error. The receiver opposed Aquila's motion, denying that the 4 percent fee was a mistake. Ultimately, the court denied the motion and awarded the *1368 receiver compensation including both an hourly fee and the 4 percent fee. In its minute order, the court stated: "The court notes that the parties seem to have agreed to the formula for the referee's fees in advance. There appears to be no basis for the court to change that agreement. While the court is not bound by that agreement, there is substantial support for such a fee. The efforts of the referee have contributed substantially to the sale of the subject property. Without the sale the whole asset would have been lost to foreclosure by the first trust deed holder, BCP11." The total amount of compensation to the receiver was $227,464.71, including the 4 percent fee of $202,000.

(1) The amount of fees awarded to a receiver is "in the sound discretion of the trial court and in the absence of a clear showing of an abuse of discretion, a reviewing court is not justified in setting aside an order fixing fees." (People v. Riverside University (1973) 35 Cal. App.3d 572, 587 [111 Cal. Rptr. 68].) Additionally, Code of Civil Procedure section 873.010, subdivision (b)(3), provides that the trial court may fix the amount of compensation payable to a referee in a partition action. Code of Civil Procedure section 1023 also allows the court to fix a reasonable fee for a referee. (2) On appeal, Aquila argues that the court abused its discretion in awarding Benneyan any fee greater than his hourly fee. But we perceive no abuse of discretion.

The trial court found that the parties had agreed on the method for calculating the receiver's fees. Additionally, the trial court found that the receiver had earned his fee by his efforts to sell the subject property. The trial court's findings are supported by the record and must therefore be accorded a deferential standard of review. (Crawford v. Southern Pacific Co. (1935) 3 Cal.2d 427, 429 [45 P.2d 183].) Therefore, we affirm the trial court's order of July 26, 1996, as it pertains to the fees awarded to Benneyan.

(3) Although this court may make an award of fees for the services of a receiver's counsel rendered on appeal, we are not disposed to do so here. Benneyan has already been awarded a total fee substantially in excess of an ordinary fee. Accordingly, Benneyan's request for an award of attorney fees is denied. (Schreiber v. Ditch Road Investors (1980) 105 Cal. App.3d 675, 681 [164 Cal. Rptr. 633].)

3. The Bartlett Appeal

Bartlett procured an offer by Avanti Investment Advisors, Inc., to purchase the subject property for $4,780,000 with a 6 percent commission *1369 payable to Bartlett. Bartlett concedes it did not have an exclusive listing agreement on the property. At the confirmation hearing on March 8, 1996, Avanti was outbid by Apollo who offered $5,050,000. Apollo was represented by another broker, Anderholt.

Bartlett then filed a complaint in intervention seeking to recover a share of the broker's commission from the sale. The court denied the claim on the grounds that "[t]he court can find no legal basis for the claim of the intervenors." Instead, the court awarded a commission of 5 percent to Anderholt.

(4a) On appeal, Bartlett argues that it was entitled to receive one-half the commission on the Avanti bid, or one-half of a commission on a sale for $4,780,000. No opposition has been offered by Anderholt, the broker who received all of the commission. The only opposing brief has been filed by plaintiff Raymond Melikian, who primarily argues that the property owners should not be responsible for paying any additional commissions to Bartlett. Bartlett concedes this point in its reply brief but contends that, if it is successful on appeal, it will then have grounds to pursue Anderholt for recovery of its share of the commission.

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Related

Crawford v. Southern Pacific Co.
45 P.2d 183 (California Supreme Court, 1935)
Simonini v. Passalacqua
180 Cal. App. 3d 400 (California Court of Appeal, 1986)
People v. Riverside University
35 Cal. App. 3d 572 (California Court of Appeal, 1973)
Estate of Brown
193 Cal. App. 3d 1612 (California Court of Appeal, 1987)
Schreiber v. Ditch Road Investors
105 Cal. App. 3d 675 (California Court of Appeal, 1980)
Melikian v. AQUILA, LTD.
74 Cal. Rptr. 2d 739 (California Court of Appeal, 1998)
Estate of Lopez
8 Cal. App. 4th 317 (California Court of Appeal, 1992)

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Bluebook (online)
63 Cal. App. 4th 1364, Counsel Stack Legal Research, https://law.counselstack.com/opinion/melikian-v-aquila-ltd-calctapp-1998.