Karen M. Mitchell

The receiver, Ernst & Young Inc., moved for approval of its activities and its fees and disbursements in the receivership of Hanfeng Evergreen Inc. The former CEO and his spouse opposed the motion, seeking conditions to protect their position in separate litigation and demanding further document disclosure to assess the fees.

The court approved the receiver's activities, noting that such general approval does not constitute fact-finding that would bind the objectors in other litigation.

The court also approved the fees and disbursements, finding them fair and reasonable under the Belyea factors, and rejected the objectors' demands for further docket disclosure as disproportionate and misdirected.

The defendants moved to strike portions of the plaintiff receiver's statement of claim under Rules 21 and 25 of the Rules of Civil Procedure.

The plaintiff alleged breach of fiduciary duty, fraud, conversion, and unjust enrichment against the first defendant, and knowing assistance and knowing receipt against the second defendant.

The court dismissed the motion regarding the first defendant, finding the material facts were adequately pleaded.

However, the court struck the claims of knowing assistance and knowing receipt against the second defendant, concluding they were bare allegations lacking the requisite material facts, but granted the plaintiff leave to amend.