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Who cannot be appointed as a receiver in California?

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 an action or related to any judge of the court.

California Rules of Court, rule 3.1177, sets forth the procedure regarding who can be nominated as a receiver; however, no similar restrictions apply. Any party appearing may, at the time of a hearing, suggest in writing one or more persons who may seek the appointment or substitution as the receiver. While not specifically prohibited in this section, it would not be advisable to nominate a relative of a party or a business associate, and failure to make such disclosure may create conflicts.

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