How do California court-appointed receivers get paid?

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 the receiver’s invoice providing reasonable detail of work performed. Any party has an opportunity to object to the receivership fees and the receiver should not pay such fees prior to the objection period expiring.

Ordinarily, receivers are paid on an hourly basis. The payment of interim fees is generally subject to the ultimate approval and jurisdiction of the court at the end of the case. In addition, if a receiver circulates proposed fees to the parties and the parties do not object, the court may infer that the parties do not object to the payment of such fees. Block billing is frowned upon by courts and receivers are well advised to provide a reasonable level of detail and each monthly invoice.

The receiver’s fees and costs are expenses of the receivership estate. In the event that the estate does not have sufficient cash available to pay the receiver’s fees, the party that sought the appointment of the receiver may be responsible to pay such fees.