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 Read More »
What is a post-judgment receivership in California?
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 satisfaction of the Judgment.
A post-judgment receiver works for the benefit of the judgment creditor. The receiver can take possession of the assets of the judgment creditor, take any positive cash flow, or sell the assets to satisfy the judgment, all pursuant to court approval.
One additional unique aspect of post-judgment receivership actions in California is C.C.P. § 685.070(a)(5) which permits the receiver to add his/her fees and costs to the amount of the Judgment collection. This means that the judgment debtor, not the judgment creditor, pays for the cost of the California court judgment receiver, assuming the receiver collects the full amount of the judgment.
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 Read More »