Appointing a court receiver in Los Angeles Superior Court involves many moving parts. The difference between a smooth receivership and one that unravels often comes down to decisions made before the motion is ever filed.
Written by Stephen J. Donell—who has administered over 1,000 court-appointed receivership cases—this guide highlights what works, what gets motions denied, and what creates downstream problems for attorneys.
Step 1: Determining You Need a Receiver and Who to Call
The process begins when a litigant or creditor decides a receiver is necessary, which means the attorney must carefully vet and nominate a candidate. Consider this an interview and ask the following questions:
- Ensure the receiver’s background aligns with the specific case type, as real estate matters differ vastly from complex business fraud cases.
- Verify that the receiver has an office near the asset or possesses established local relationships.
- Confirm the receiver’s bond capacity before committing to them, as this is non-negotiable in California.
- Look for a receiver with their own professional forms, reports, and templates so you do not have to write their playbook.
- Check for professional credentials, such as a real estate broker license, CCIM or CPM designations, or an RCFE administrator certification for healthcare facilities.
- Ensure the receiver is recognized in the industry, such as holding membership in NAFER or the California Receivers Forum.
Step 2: Building a Motion That Won’t Get Denied
Inexperienced attorneys often make predictable errors in their receivership motions. Avoid these common mistakes:
- Include the receiver’s bond in the order, as it is a strict requirement under California law.
- Provide a complete street address for the asset alongside the legal description and APN to ensure the order can be properly recorded and third parties can respond.
- Draft the order precisely to reflect whether it is an equity receiver (over the owning entity) or a limited purpose receiver (over collateral).
- Explicitly authorize the receiver to act within the order, including taking over bank accounts, retaining counsel, and selling assets.
- Include a draft order and a declaration from the proposed receiver with your motion.
- For ex parte appointments, explicitly articulate the exigent circumstances and file the application by 10:00 a.m. the day before the hearing.
Step 3: Understanding Los Angeles Superior Court
Out-of-area attorneys frequently underestimate the unique nature of this jurisdiction.
- Los Angeles Superior Court utilizes dedicated Writs and Receivers departments.
- These judges are highly informed, understand legal requirements, and recognize proper form orders.
- Filing in Los Angeles requires strict adherence to local rules, timing requirements, and form preferences that differ from smaller California counties.
Step 4: Preparing for the Receiver Consultation
When contacting a receiver before a filing, you need to quickly communicate the nature of the engagement.
- Clearly identify if there is an emergency, such as active fraud or real-time financial loss.
- Explain the ultimate goal of the receivership, whether it is stabilizing a workout, selling assets, or holding the asset during foreclosure.
- Clarify exactly what the order authorizes the receiver to do.
Step 5: Executing the First 48 Hours
An experienced receiver will arrive with a comprehensive first-day checklist. This checklist includes:
- Filing the oath and bond immediately to legally qualify for action.
- Coordinating right away with accountants, security, and locksmiths.
- Contacting the landlord in advance to prevent confrontations during the transition.
- Freezing accounts and notifying banking institutions.
- Issuing notices to creditors, tenants, and employees.
- Securing alarm codes and locking down IT systems to prevent the prior operator from infiltrating records.
- Obtaining evidence of insurance immediately and ensuring the receiver is named as an additional insured on day one.
- Securing evidence of regulatory compliance, business licenses, and permits.
- Filing IRS Form 56 to provide notice of the appointment and avoid personal liability for tax obligations.
- Conducting an immediate litigation search to determine if the receiver needs to step into the company’s shoes to prosecute or defend pending cases.
Common Pitfalls and Why They Are Preventable
Most failures in receivership have identifiable origins.
- If the order lacks adequate language authorizing the receiver to act, it will cause future delays and costs.
- Failing to effectuate proper notice and serve the order undermines the legal foundation of the receiver’s work.
- Starting the receivership without an identified funding source puts the entire operation in a financial hole.
- Failing to serve the original complaint on the defendant can result in the entire receivership being unwound and fees disgorged.
- Attaching an incorrect schedule of properties to the order leaves the receiver without legal authority to protect omitted assets or collect rent.
About the Author:
Stephen J. Donell, CCIM, CPM is the President of FedReceiver, Inc.. He has served as a court-appointed receiver in over 1,000 matters across California, Arizona, and Nevada, managing over $3 billion in assets.
Court Receiverships 
