777 Partners Hit With Limited Receivership for Unpaid Legal Fees

777 Partners LLC, the beleaguered Miami investment firm known for buying sports teams and battling creditors in court, will be operating under a limited receivership until it pays a former executive’s legal expenses.

A Delaware magistrate judge appointed the receiver in a decision unsealed Monday, rejecting the partnership’s argument that it lacks the funds to cover lawyer fees incurred by Damien Alfalla, its onetime chief financial officer. The contempt of court standard “is easily met” by the firm’s refusal to comply with fee orders based on financial distress claims that don’t stand up to scrutiny, the ruling said.

“777 ...