LEGAL UPDATES

Rules on Legal Fees for Receiver Should be Revised, Says Appeals Panel

An appeals court urged the Legislature to revise a provision of the Business Corporation Law limiting fees of court-appointed receivers.  The Court criticized the unfairness of Business Corporation law sec. 1217, which in the case of Application of Jakubowicz, 5875N, amounted to only $15 per hour.  The receiver spent nearly 400 hours on a dissolution of nine coporations, but the court's hands were tied by the statutory provision providing for a samll percentage of the "sums received and disbursed" as the basis for his fee.