26 May 2025
Court Receiverships
The roles of a court receiver are varied, but generally, a receiver may be appointed in a limited capacity for a very limited role. For example, a receiver may be appointed to collect accounts receivables, to perform environmental remediation, to sell a liquor license or to provide access to an appraiser. Or a receiver may take possession of the collateral for a loan but not be appointed over the defendant entity itself. Finally, an equity receiver may be appointed over the defendant entity itself, including in federal court pursuant to Federal Rule of Civil Procedure 66.
The general roles of a court receiver include:
(1) to hold, manage and operate businesses, real properties and other forms of income-producing assets,
(2) to cause the sale of the parties’ assets to realize cash.
The receiver’s function is to control the assets in such manner as the judge cannot directly do while sitting in the courthouse. The appointment of a receiver is not a cause of action; however, it is a provisional remedy as provided by statute or under the general equity powers of the court, in a variety of legal circumstances.
The primary roles of a California receiver are to hold, manage, and operate businesses or real properties that are subject to a legal dispute. Additionally, they are often tasked with selling those assets to generate cash, serving as a provisional remedy to protect the interests of creditors and litigants while a case is pending.
A neutral court-appointed professional, or receiver, is an independent agent of the court who takes legal possession of property without becoming its owner. Their job is to act impartially to safeguard assets from mismanagement or waste, performing duties like repairs, rent collection, and financial reporting as directed by a judge.
A limited receiver is appointed for a specific, narrow task—such as providing an appraiser access to a property or performing environmental remediation. An equity receiver has much broader authority, taking possession of an entire defendant entity to manage all operations and financial affairs, often under Federal Rule of Civil Procedure 66 or state statutes.
A receivership is not a standalone lawsuit but a “provisional remedy” used to assist the court in achieving a fair outcome. It allows the judge to place assets under professional control during litigation, ensuring that property is preserved and managed properly until a final judgment can be enforced.
3 December 2021
Court Receiverships, Resources
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…
10 December 2021
Court Receiverships, Resources
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…
11 May 2022
Court Receiverships, Resources
All court receiverships are not created equally, but the life-cycle of a court receivership has similarities that can be seen in almost every case.
