How is a receiver appointed in Arizona?

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 party seeking the appointment of a receiver must file an application for the receiver’s appointment, accompanied by an affidavit attesting to the facts supporting the application. Within 10 days after being served, the adverse party may file a response accompanied by one or more affidavits attesting to facts relevant to the application. Except as provided in Rule 66(a)(3), the court must hold a hearing on the application. At the hearing, it may consider testimony and other evidence presented by the parties. (2)Service. Service must be made on the adverse party in the same manner that a summons and pleading are served under Rule 4, 4.1, or 4.2, as applicable. The court may not consider an application that has not been served on the adverse party unless:(A) at least 10 days after filing the application, the applicant files an affidavit showing that all reasonable efforts have been made to serve the adverse party, and that personal service on the party cannot be made within Arizona or by direct service outside of Arizona; or(B) the applicant shows that substantial cause exists for appointing a receiver before the adverse party is served.(3)Appointment Without Notice. If a party applies for appointment of a receiver without notice, the court may either grant the application or, if the adverse party is available to be served, order the applicant to serve the adverse party and set a hearing on the application to be held no later than 10 days after the order’s entry. (4)Bond. If the court grants an application for appointment of a receiver without notice, it must require-and the applicant must file-a bond in an amount the court fixes, with such surety as the court approves. The bond must be conditioned to indemnify the adverse party for costs and damages occasioned by the seizure, taking, and detention of the adverse party’s property. (5)Rule 65 ‘s Applicability. The court may not consider an application for a receivership under this rule if Rule 65 applies. (b) Appointment; Oath; Bond; Certificate. (1)Appointment. Except as stated in this rule, the court may not appoint as receiver a party, an officer or employee of a party, an attorney for a party, or a person interested in the action. The court, however, may appoint as receiver an employee of a party, an officer of a corporate party, or a person otherwise interested in the action, if:(A) the court finds that the property has been abandoned or that the receiver’s duties will consist chiefly of physically preserving the property, collecting rents, or maturing, harvesting, and disposing of crops growing on it;(B) notice is provided in a manner the court finds adequate; and(C) no party objects. (2)Bond, Oath, and Certificate of Appointment. Before performing the prescribed duties, a receiver must file a bond for the court to approve. The bond must be in the amount set forth in the receiver’s order of appointment, and must be conditioned on the receiver faithfully discharging his or her duties in the action and obeying the court’s orders. The receiver must make an oath to the same effect, which must be endorsed on the bond. Upon the court’s approval of the bond and the receiver making the required oath, the clerk must deliver a certificate of appointment to the receiver. The certificate must contain a description of the property involved in the action. (c) Powers; Removal and Termination; Governing Law.(1)Powers. A receiver may commence and defend actions, subject to the court’s control and supervision. A receiver may take and keep possession of the property, receive rents, collect debts, and perform such other duties respecting the property as the court orders. (2)Suspension and Removal. The court may suspend a receiver at any time and may, after providing reasonable notice, remove a receiver and appoint another. (3)Termination. Any party may move to terminate a receivership. Unless the parties stipulate otherwise, the court must hold a hearing on the motion no sooner than 10 days after the motion’s service. In scheduling the hearing, the court may order the receiver to file and serve a final account and report, and may require any objecting party to file and serve written objections. At the hearing, the court may take evidence as is appropriate and may enter orders as are just concerning the receivership’s termination, including orders regarding the receiver’s fees and costs. (4)Equitable Principles Govern. If applicable, principles of equity govern all matters relating to the appointment of receivers, their powers, duties and liabilities, and the court’s power. (d) Dismissal. An action in which the court has appointed a receiver may not be dismissed except by court order.

Ariz. R. Civ. P. 66

Amended effective 1/1/2017.

Comment

2017 Amendment to Rule 66(a)

Rule 66(a) previously allowed an application for receiver to be included in a verified complaint or made by separate verified application. Amended Rule 66(a) no longer permits this. A request for receiver must be filed as a separate application and must be accompanied by a supporting affidavit.Rule 66 – Receivers, Ariz. R. Civ. P. 66