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IN RE DIVIDEND DEVELOPMENT CORP.

Bankruptcy No. SA 92-11812 JR.

145 B.R. 651 (1992)

In re DIVIDEND DEVELOPMENT CORPORATION, a California corporation, Debtor.

United States Bankruptcy Court, C.D. California.

September 23, 1992.

Attorney(s) appearing for the Case

Jeffrey L. Kandel, Levene & Eisenberg, Los Angeles, Cal., for debtor.

David Gould, McDermott, Will & Emery, Los Angeles, Cal., for creditors' committee.

MEMORANDUM OPINION

JOHN E. RYAN, Bankruptcy Judge.

Dividend Development Corporation ("Debtor") filed applications seeking to employ insolvency counsel and special real estate counsel (the "Applications"). Debtor's employment agreements with both counsel included the payment of substantial retainers designated as earned-on-receipt (the "Retainers"). The United States Trustee ("Trustee") objected to the characterization of the Retainers as earned-on-receipt...

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