Category: Court Receiverships

The Receiver is empowered to: (1) collect, control, manage, conserve, and protect receivership property;(2) operate a business constituting receivership property, including preservation, use, sale, lease, license, exchange, collection, or disposition of the property in the ordinary course of business;(3) in the ordinary course of business, incur unsecured debt and pay expenses incidental to the receiver’s…

In Arizona, the Ariz. R. Civ. P. 66 ( “Rule 66”) establishes a specific procedure for appointment of a court receiver. A party can seek to have a receiver appointed pursuant to court order based on the following, consistent with the Rule 66 as follows: (a) Application; Service; Notice; Restraining Order. (1) Application, Response, and Hearing. A…

The administration of receivership estates takes specific skills, training, and experience. Receiverships involve litigation and oftentimes unique asset types. A good court receiver will have a good command of the applicable codes, statutes, and ordinances governing the appointment and administration process of the receivership estate. The receiver may also have requisite licenses and professional designations…

In California, the court receiver is entitled to seek compensation. This is pursuant to California Rules of Court, rules 3.1183, 3.1184. Typically, the order appointing the receiver will set forth the procedures whereby the receiver may be compensated. Often, a receiver must circulate a notice of intent to pay fees along with a copy of…

In the state of California, court-appointed receivers must be qualified to serve as receivers. Pursuant to the California Code of Civil Procedure § 566(a), numerous circumstances would prohibit an individual from qualifying to serve as a court receiver. This includes a party to the litigation, an attorney for a party, or a person interested in…

In California, the legal authority for the appointment of a post-judgment receivership is contained in CCP § 708.610-708.630. The court may appoint a receiver to enforce the judgment where the judgment creditor shows that, considering the interests of both the judgment creditor and debtor, receivership is a reasonable method to obtain the fair and orderly…

The California Rules of Court, Rule 3.1179 sets forth the basic parameters regarding court-appointed receivers. A Los Angeles court-appointed real estate receiver is an agent of the Court and not a party. As a result, the receiver is neutral, asks for the benefit of all who may have an interest in the receivership property, and…

California health and safety law requires residential landlords to maintain dwelling units in a habitable condition. This principle is known as the warranty of habitability. If a landlord is found to have violated applicable statutes regarding habitability issues, government agencies can take action to appoint a receiver to help bring the property into compliance. The…

A California court-appointed receiver may borrow funds. The process of borrowing funds is subject to court approval. The court receiver will need to identify the reasons for the borrowing which may include the preservation and management of the real estate, property, or business operations over which the receiver has been appointed. The borrowing itself is…