The California Code of Civil Procedure Section 564 lists many of the traditional types of cases in which receivers may be appointed. They include, but are not limited to, the following: Preservation of a common fund or property in dispute and in danger of injury or dissipation;Rents, Issues and Profits (Real Estate);Substandard Housing – The…
Can a receiver hire a lawyer?
A California court-appointed receiver may hire counsel. However, pursuant to California Rules of Court, the receiver must not employ an attorney without the approval of the court. The application for approval to employ an attorney must be in writing and must include the following:
· Reason the court receiver needs to retain counsel;
· Name of the attorney the receiver proposes to employ, and
· That the attorney is not the attorney for, associated with, nor employed by an attorney for any party.
In many instances, the court order appointing the receiver grants the receiver general authority to retain counsel. Additionally, the California Judicial Council form order appointing the receiver grants the receiver with blanket authority to retain UD counsel for purposes of eviction. If there is any ambiguity in the order appointing the court receiver, the receiver is well served by filing a motion with the court seeking authority to employ counsel. Such employment may be approved on a retroactive, nunc pro tunc basis.
A receivership can be structured in a variety of ways based on the nature of the dispute, the goals and objectives of the parties, the type of asset(s) that will be placed under the control of a receiver as well as the ruling of the court. There are two core types of receiverships – a…