No. 333.Circuit Court of Appeals, Second Circuit.
May 4, 1936.
Appeal from the District Court of the United States for the Southern District of New York.
In the matter of the Paramount Publix Corporation, debtor. From an order (12 F. Supp. 823) denying the application of Cravath, De Gersdorff, Swaine Wood for an allowance of fees and disbursements as attorneys for Kuhn, Loeb Company, agents in reorganization of the debtor, applicants appeal.
Reversed, with directions.
Cravath, De Gersdorff, Swaine Wood, of New York City (Robert T. Swaine and Wm. D. Whitney, both of New York City, of counsel), for appellants.
Simpson, Thacher Bartlett, of New York City (Thomas D. Thacher, Edwin L. Weisl, and Richard Jones, III, all of New York City, of counsel), for appellee.
Before MANTON, SWAN, and AUGUSTUS N. HAND, Circuit Judges.
MANTON, Circuit Judge.
The law firm of Cravath, De Gersdorff, Swaine Wood was attorney for Kuhn, Loeb Co., who, we held in a decision filed this day, In re Paramount Publix Corporation, 83 F.2d 406, were agents for various committees in the reorganization proceedings under section 77B of the Bankruptcy Act (11 U.S.C.A. § 207) for the Paramount Publix Corporation. As stated in that opinion, this law firm rendered legal services in the preparation of the plan of reorganization carried on from June 7, 1934, until the withdrawal of their client, Kuhn, Loeb Co., on November 8, 1934. The character of the legal services performed and the benefits arising from them are sufficiently described in the opinion filed in the Kuhn, Loeb Co. Case. In addition, disbursements of $812.15 were incurred. The authorization to Kuhn, Loeb Co. to proceed with the preparation of a plan of reorganization necessarily implied that competent counsel would assist in the performance of this function delegated by the committees, and, further, the committees placed the company’s records at counsel’s disposal in their work of assisting in formulating a plan. As such counsel, they may be compensated within the statute’s provision for attorneys. For the services rendered in these reorganization proceedings under section 77B of the Bankruptcy Act, an allowance should be granted of $60,000, plus disbursements.
The order appealed from is reversed, with directions to provide accordingly.
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