Following the dismissal of the Receiver's motion to approve a sublease, the successful responding parties (the Oxford Parties) sought costs of $707,229.66 on a substantial indemnity basis, or alternatively $558,187.26 on a partial indemnity basis.
The Receiver argued no costs should be awarded or, alternatively, $250,000.
The court held that while restructuring proceedings are often not classic adversarial litigation, this dispute between commercial competitors warranted a costs award.
The court declined to hold the Receiver personally liable, ordering costs payable from the debtor's estate.
Finding the Oxford Parties' settlement offer non-compliant with Rule 49, the court awarded partial indemnity costs fixed at $400,000.
