Does a court have discretion to prohibit the payment of attorneys fees from frozen assets?

MultiRegion, United States of America

The following excerpt is from Commodity Futures Trading Com'n v. Noble Metals Intern., Inc., 67 F.3d 766 (9th Cir. 1995):

District courts do have discretion to regulate the payment of attorneys fees from assets that are frozen pending trial and to forbid the payment of some fees out of those assets. However, we have never previously held, as the majority appears to believe we have, that a flat prohibition against the payment of all attorneys fees, including those essential to provide a defense, is within a district court's discretion. To the contrary, in previous cases we have told the district courts to establish rules governing the use of frozen assets for attorneys fees and have described how and under what circumstances a district court may go about limiting access to frozen funds for payment of attorneys fees. See, e.g. FTC v. World Wide Factors, Ltd., 882 F.2d 344, 348 (9th Cir.1989). Moreover, as one of the cases we have approved states specifically, district courts should establish procedures that will permit the payment of reasonable attorneys fees. FSLIC v. Dixon, 835 F.2d 554, 565 (5th Cir.1987).

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