30 July 2026
Court Receiverships
The lawyer is the gatekeeper. Before a judge evaluates a proposed court-appointed receiver, a lawyer has to nominate one. And if it never gets past the lawyer, the receiver never gets a shot at even being considered by the judge. That means the decision you make in your office — who to call, what to ask, how to vet — determines the outcome of the case more than almost anything that happens afterward.
Most attorneys think the critical moment in a receivership is standing before the judge. In my experience, the critical moment happens before you ever walk into the courtroom.
After nearly 1,000 appointments across California, Nevada, Arizona, and federal courts nationwide, I’ve seen this process work well and I’ve also seen it go terribly wrong. What follows is what I’d tell any attorney who wants to get it right.
When judges evaluate a proposed receiver, they’re looking at several things simultaneously.
Case-specific qualifications. Does this receiver have experience with the particular type of matter before the court? A receiver with a strong real estate background is not automatically equipped for a fraud-driven business receivership, an SEC enforcement action, or a healthcare facility receivership. The judge wants to know that the proposed receiver has handled something like this before — not that he/she has to learn on the job.
Geographic capability. Can the receiver efficiently handle the location of the asset? Does the receiver have an office nearby, or established relationships with qualified third-party professionals in that submarket? A receiver who is located three hours from the asset without local contacts or affiliates can be a problem from day one.
Licenses and professional designations. For real estate matters, is the receiver a licensed real estate broker? For healthcare, do they hold the relevant certifications? These aren’t formalities — they are necessary qualifications of a receiver that the court can read quickly to assess whether this person is genuinely qualified or just presenting well on paper.
Third-party professional network. What attorneys, accountants, real estate brokers, auctioneers, and other professionals will the receiver deploy? An experienced receiver doesn’t reinvent the wheel on every case. They have a trusted network they’ve worked with for years, and that network is part of what they’re bringing to the case.
Fees. Are the proposed fees reasonable given the nature and complexity of the matter? Courts are attentive to this, and it should be addressed directly in the motion.
The CV. Does the receiver have a properly formatted CV that allows the judge to accurately and reasonably review his/her qualifications? This sounds basic, but I’ve seen nominations fail because the proposed receiver’s credentials weren’t clearly presented.
Beyond the papers, judges in courts that regularly handle receiverships often know the receiver community personally. If a judge routinely appoints receivers, it’s likely they already know the reputation of the proposed receiver. They may also turn to opposing counsel — and any other parties in the case — and ask what they think. The defense attorney’s reaction to your nominee tells the judge something too.
The difference between a receiver who looks good on paper and one who actually performs comes down to one thing: results.
If the asset is to be sold, does the receiver have the skills and the professional relationships to market, list, and sell it in a way that achieves a legitimate market-rate outcome? Do they understand creditor claims, tax obligations, and the process for obtaining a court-confirmed sale free and clear of liens? That process — where liens follow the proceeds rather than the property — requires specific legal and operational knowledge. A receiver who doesn’t understand how it works creates exposure for your client.
Professional designations and licenses matter because they’re verifiable. Anyone can describe what they’d like to do. A receiver with a real estate broker’s license, a CCIM designation, or an RCFE administrator certification through the California Department of Social Services has demonstrated something concrete. I hold all three.
More important than designations, though, are specific case examples. When I’m nominated for a matter, my declaration includes concrete examples of prior cases involving similar properties, similar businesses, or similar operational challenges. That’s what differentiates a receiver with actual experience from one who provides a description of what they intend to do.
Watch out for the real estate broker who wants to become a receiver. The broker may have experience selling property, but the question is whether the broker has the full range of skills a receivership actually requires — litigation knowledge, tax compliance, creditor management, insurance, government agency coordination, and the ability and experience to act as an officer of the court.
When a lawyer nominates a receiver, the package should include a declaration of the proposed receiver, the receiver’s CV, and a fee schedule. The declaration does what the CV can’t — it describes the receiver’s knowledge, skills, and experience in a narrative form that gives the court real context for the qualifications being claimed. It’s a supplemental document to the CV, and it’s where the concrete case examples should be described.
There are generally three ways to seek appointment of a receiver, and attorneys need to understand all three before they file anything.
Ex parte appointment is an emergency basis appointment. There must be a clear showing of exigency — that an emergency exists and that a noticed hearing would unduly burden or damage the business or asset. That showing has to be supported by declarations. If the emergency isn’t convincingly documented in the moving papers, the ex parte will be denied and you’ll be starting over.
Order shortening time (“OST”) allows for a hearing on an expedited but non-emergency basis. It’s the middle path when there is a genuine urgency but not a true crisis requiring same-day action. An OST is a court directive that allows a party to schedule a hearing or serve legal documents sooner than the standard rules dictate. It overrides normal notice periods to ensure immediate judicial attention in urgent situations. But, to be granted, the applicant must demonstrate good cause showing that waiting for standard dates would cause irreparable harm, severe financial loss, or immediate danger.
Noticed motion is the standard route, but in some jurisdictions obtaining a hearing date can take many months.
I’ve seen attorneys fail at all three by not putting the pieces together properly. The motion needs to cite applicable case law through a Memorandum of Points and Authorities. It needs exhibits — a note and deed of trust, a contract showing the breach that gives rise to the receivership. It needs declarations that support not only the need for a receiver in general, but the specific manner and timing of the appointment.
When attorneys don’t have experience with this process, I provide them with samples. I’ve been appointed nearly a thousand times. I have sample memoranda of points and authorities, orders appointing receiver, and declarations in support of appointment for a wide range of case types. I routinely review draft pleadings from attorneys who are new to receiverships and provide feedback before anything gets filed. There are also trade organizations — the California Receivers Forum, the National Association of Federal Equity Receivers, and the Commercial Receivers Association — that offer training on the appointment process.
The bottom line is that an inexperienced attorney doesn’t have to walk into court unprepared. The resources exist, and a good receiver will help you use them.
There are two primary types of receiverships, and understanding the distinction is essential before you nominate anyone.
A limited purpose receiver, or rents profits receiver, is appointed over the collateral for a loan. If an office building has a defaulted loan and the lender needs to foreclose, a limited purpose receiver takes possession of the building, collects income, and pays the bills until the foreclosure or sale is complete. The scope is the asset itself.
An equity receiver is appointed over the ownership entity of the asset. If that same office building is owned by 100 Main Street LLC, the equity receiver is appointed over the LLC — responsible for taxes, shareholder governance, Secretary of State compliance, creditor notices, existing litigation, and all other governance obligations of the ownership entity. That is a materially different and more demanding appointment. See our full breakdown of equity vs. limited purpose receiverships for more detail.
I’ve served as equity receiver in actions brought by the Federal Trade Commission and the Securities and Exchange Commission, as well as in complex business, partnership, and LLC matters. The case types I’ve handled include:
Restaurants, that require specific knowledge of alcohol licensing, sales tax obligations, and employee management
Healthcare facilities, including assisted living and skilled nursing, where I hold an RCFE administrator certification through the California Department of Social Services
Construction completion receiverships, where the receiver hires a general contractor and completes the project — in one Southern California case, we completed and sold over 100 single-family homes
Clothing distribution, manufacturing, retail operations, and tax preparation franchise portfolios
Failed developments, condominiums, and multi-asset real estate portfolios
When a generalist receiver is appointed over a specialized asset and lacks the requisite knowledge — or can’t reasonably access it through qualified third parties — the case gets into trouble. That trouble can take the form of wage and hour violations, non-compliance with licensing requirements, safety failures, permit issues, zoning problems, and exposure to government enforcement. The receivership estate and the receiver both face consequences when the wrong person is in the role.
Due diligence of a proposed receiver is not optional. Here’s how to do it properly.
Check their bandwidth. One of the most common failures I have seen is a receiver who is simply overwhelmed. I stepped in as successor receiver in a case where the prior receiver had not paid the mortgage on the property, leaving it in imminent danger of foreclosure. The receiver wasn’t incompetent — the receiver was simply overextended and not minding the store. I had to secure emergency financing to bring the loan current and save the asset. Ask the proposed receiver what their current caseload looks like and whether they have the staff to handle your matter properly.
Research their prior cases. Services like Westlaw allow you to search cases where a receiver has been appointed. More importantly, you can obtain copies of orders terminating receivers and final orders of discharge. If there were problems in a receivership — over billing issues, accounting failures, performance issues — those orders will often reflect it. It’s available and you should use it.
Call their references. Ask for names of attorneys at other firms who have worked with this receiver. Call them. Ask specific questions about how the receiver performed, whether they communicated well, whether the case resolved cleanly. Government agency contacts — from the FTC, SEC, or state enforcement agencies — can be equally valuable references for receivers who handle those matters.
Understand who you’re actually getting. At larger firms, there may be a senior receiver whose name is on the nomination and receiver administrators who actually handle the day-to-day work. There is nothing wrong with this provided the receiver with the relevant experience is going to be genuinely involved in your matter, not just lending their credentials to it.
At FedReceiver, this isn’t a concern. Stephen and James Donell have handled over 1,000 cases combined during 35 years of practice. Our support staff consists of employees who have been with the firm for more than 20 years and have helped administer hundreds of cases. When you retain FedReceiver you know exactly who is running your matter.
The single most important thing an attorney can do after nominating a receiver is tell them what the goal is.
Is the lender foreclosing and taking the property back as an REO asset? Is the receiver selling the asset to pay off creditors? Is the note being sold? Is there a workout in progress and the receiver is a placeholder while the borrower and lender negotiate? Or, is it an investigation-first situation where the goals depend on what the receiver finds?
I’ve handled cases where a lender had serious concerns about environmental contamination and didn’t want to foreclose until the environmental picture was clear. Knowing that going in shaped every decision I made in the first 30 days. Without that information, I would have been operating blind.
Talk about fees before the case starts. Discuss the expected complexity of the matter so there are no surprises on either side. Although it is impossible to accurately predict the amount of the fees and cost the receiver will incur in a receivership case, a receiver who knows what they’re walking into can give you a better idea of the amount he/she might have to incur. A receiver who finds out about the complications after the fact cannot. For example, if opposition is expected at every step of the way, the fees will likely increase dramatically as opposed to parties who cooperate with the receiver and comply with the court’s orders.
Brief the receiver on emergencies before day one. This is where I’ve seen the biggest difference between attorneys who get great outcomes and those who don’t.
I was the receiver in a case involving an apartment building that had applied for a change of use from hotel to residential and had serious compliance issues and a pending city enforcement action. The city had not approved the change of use but the building was operating as apartments. Because the attorney told me about this before I was appointed, I contacted the planning department on day one, introduced myself as the newly appointed receiver, and they immediately suspended enforcement activity. Had I not known, I would never have made that call — and I would have inherited an active enforcement action against the property.
In another matter, I was appointed over a portfolio of Southern California properties. The fire department had been conducting inspections and the fire suppression systems in two of the buildings were offline. The prior owner had ignored the fire department’s notices, and the department was preparing to issue drastic shutdown orders. Because I was briefed on this before my appointment, I notified the fire department immediately. Once they knew a receiver had been appointed, they gave me a 60-day extension to resolve the problem.
Had I not known, I would have walked into buildings already under an order to shut down.
The attorneys who get the best outcomes are the ones who properly inform the receiver from the very beginning — not a contractor who shows up and figures it out. And, the receiver can assist with the preparation of the proposed order appointing receiver so it will include the duties necessary for the receiver to properly proceed and avoid the time and expense of going back to court for further instructions or further orders that the receiver may need.
If you are evaluating receivers for an upcoming matter in Los Angeles, Orange County, San Diego, San Francisco, the Inland Empire, or anywhere across California, Nevada, or Arizona, I am happy to discuss the specifics of your case, provide sample forms and declarations, and review your draft motion before it’s filed.
FedReceiver, Inc. has been doing this for 35 years. We bring the experience, the staff depth, and the professional network to handle matters from straightforward residential partition actions to multi-asset federal enforcement receiverships.
Contact FedReceiver, Inc. to discuss your matter.
Stephen J. Donell, CCIM, CPM is the President of FedReceiver, Inc. and has served as court-appointed receiver or partition referee in nearly 1,000 matters across California, Nevada, Arizona, and other states, managing assets in excess of $3 billion. He is a California licensed real estate broker, member of the National Association of Federal Equity Receivers (NAFER), and holds an RCFE administrator certification through the California Department of Social Services.
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Court Receiverships, Resources
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