RESPONSE TO [DOC#192] AND [DOC#193] - Page 4
SouthPac’s LLC companies have no responsibility for the liabilities or
administrative fees or costs relating to Mr. Baron’s assets. Also, the scope of the
receivership extends to Mr. Baron’s exempt property, and distribution of such
exempt property would be unlawful.
10. Payment to the receiver with respect to SouthPac’s companies is also
improper because the receiver acted as an advocate seeking inclusion of the
companies in the receivership order. A receiver is prohibited from seeking to be
appointed receiver over a company and then charge those companies for its work
as receiver. Rather, by law a receiver must be disinterested. Booth v. Clark, 58 US
322, 331 (1855). Similarly, the receiver’s requested fees must be excluded because
the receiver is not entitled to compensation from receivership assets for his role as
an advocate against a party.
11.The fees run up by the receiver and his law firm are unreasonable and
include fees and charges prohibited by law. For example, the receiver and his law
firm have charged for executing upon property exempt from execution as a matter
of law, such as Mr. Baron’s Roth IRAs. Seizure of exempt assets appears to be
around half, or more, of the entire receivership with respect to Mr. Baron.
12.The fees are also excessive and unnecessary. Mr. Baron complied with
this Court’s injunction order with respect to his assets, even though it was issued
without notice, without supporting affidavit, and without supporting findings, in
Case 3:09-cv-00988-F Document 236 Filed 01/20/11 Page 4 of 8 PageID 5146