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Court Receiver Services

FedReceiver, Inc. receivers have administered approximately 800 cases in state and federal court across the country.

Who We Work With

We work on cases with disputes involving creditor rights, judgment collection, divorce, partnerships, corporations, investor/consumer fraud, health & safety, health-care and investor disputes.

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Creditor Rights Attorneys

Lawyers representing real estate/business lenders, judgment creditors and partnerships/LLC’s.

Insolvency Attorneys

With a great deal of cross-over between bankruptcy and receivership, insolvency attorneys regularly seek the use of court appointed receivers.

Government Agencies

SEC, FTC, CFTC and various state agencies including the department of justice.

Judgment Enforcement Attorneys

Lawyers representing judgment creditors or that may be involved in charging orders.

Divorce Attorneys

Our receivers are expert marital dissolution receivership specialists.

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Clients Who Trusted Us

As an attorney representing secured creditors who provide C&I loans, I have needed to seek the appointment of a receiver due to loan defaults. Stephen Donell, Receiver, is a take-charge, dependable and results-oriented professional with whom we have a long-standing history. We highly recommend his services as receiver to other lenders and creditors.

Attorney, San Francisco CA
San Francisco, CA

As lenders’ counsel, our firm has worked with FedReceiver, Inc. for many years in connection with real property defaults and several cases involving the appointment of a Receiver. Mr. Donell and his team have distinguished themselves as knowledgeable and effective court appointed receivers.

Attorney, Los Angeles CA
Beverly Hills, CA

Our firm has had multiple opportunities to work with the professionals at FedReceiver and the results have been extremely positive in all of our partition referee and receivership matters.

Attorney, Los Angeles CA
Los Angeles, CA

I have worked with Stephen Donell in multiple cases where he was appointed as receiver over assets secured by loans originated from our lending institution. Mr. Donell’s expertise and experience have been invaluable in the protection of the bank’s loan security.

Lender, Orange County CA
Orange County, CA

Mr. Donell has served as court-appointed Receiver in multiple matters in connection with partnership litigation filed by our firm. Mr. Donell has demonstrated his knowledge regarding asset preservation, forensic investigations, and fiduciary duty violations, and his actions have resulted in positive results for my clients’ interests.

Attorney, Los Angeles CA
Los Angeles, CA

Mr. Donell demonstrated his knowledge and skill related to slum-like conditions and the applicable standard of care. His testimony was instrumental in our firm achieving a very positive result. I would highly recommend the services of Mr. Donell.

Plaintiff’s Attorney, San Francisco CA
San Francisco, CA

Stephen Donell was retained by our firm in connection with a personal injury case. His analysis and involvement in the case assisted us in achieving our goals and objectives in the defense of the case.

Defense Attorney, Los Angeles CA
Los Angeles, CA

We utilized the services of Stephen Donell and relied on his vast knowledge in the area of receivership administration to assist us with our case.

Attorney, San Diego CA
San Diego, CA

Locations Served

With cases involving assets throughout the country and internationally, FedReceiver, Inc. provides nation-wide receivership services including international asset recovery.

Alameda, Butte, County of San Francisco, Contra Costa, El Dorado, Fresno, Humboldt, Imperial, Inyo, Kern, Kings, Los Angeles, Marin, Orange County, Riverside, Sacramento, San Bernadino, San Diego, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Ventura County, and the California District Court.

Las Vegas, Carson City, Clark, Douglas, Elko and Washoe County

Phoenix, Gila, Maricopa, Mohave and Pima County

States with cases/assets include Arizona, California, Colorado, Florida, Hawaii, Idaho, Illinois, Indiana, Massachusetts, Michigan, Montana, Nevada, Ohio, Oregon, Texas, Utah, Virginia, Washington, Wisconsin.

How we work together

We match our training, experience, expertise, licensing and credentials with the needs of each case to identify the appropriate use of the proposed remedy including receivership, partition referee, provision director and dissolution manager.

Reach out

Reach out to us via our contact page.

Set an Appointment

An initial call will allow for an initial assessment of the proposed case.

Sample Pleadings & Orders

With approximately 800 cases, FedReceiver has a vast library of exemplars including motions seeking appointment of receiver, orders appointing receiver and memorandum of points & authorities.

References

We offer excellent references with local and national law firms, accounting firms and clients.

Court Experience

Given our decades of experience and hundreds of cases, we have appeared in state/federal court and have excellent relationships with numerous courts/judges.

Receiver FAQs

How can FedReceiver, Inc. help with partitions or receiverships?

The receivers and partition referees at FedReciver,Inc. have decades of experience. This includes experience as receivers in state and federal courts throughout the country as well as having served as partition referees cumulatively in more than 900 cases. Based on the extensive experience in real estate including professional designations in property management, real estate brokerage licenses, expert witness work and being recognized as industry leaders in the partition and receivership industry, our professionals provide efficient services based on decades of experience, knowledge and training. This results in cost savings, efficiency and successful case outcomes. Stephen Donell is a RCFE – residential care facility for the elderly which is an accreditation provided by the California Department of Social Services. As such he has experience in being a receiver over assisted living facilities in California. In addition to real estate, our professionals have operated retail businesses, distribution companies, manufacturing and other specialized businesses in many fields including technology, clothing, health care and professional services.

What is the difference between a receiver and a trustee?

While both receivers and bankruptcy trustees may be faced with administering estates that are facing financial difficulties, their roles are quite different.
Bankruptcy Trustee:

 

  1. Context: A bankruptcy trustee is appointed in a bankruptcy case when an individual or business files for bankruptcy under the U.S. Federal  Bankruptcy Code. Bankruptcy is a cause of action. One can file a lawsuit for bankruptcy.
  2. Role: The trustee manages the bankruptcy estate, reviews financial disclosures and bankruptcy petitions, oversees the liquidation of non-exempt assets (in Chapter 7), or administers repayment plans (in Chapter 11 or 13).
  3. Authority: The trustee has the authority to act, per statute/court order, on behalf of the creditors and the court to ensure the bankruptcy process proceeds according to legal guidelines. They primarily focus on maximizing payments to creditors, in order of priority, from the debtor’s estate.
  4. Legal Framework: Bankruptcy trustees operate under federal bankruptcy law and are specifically trained to handle bankruptcy cases. There is very little flexibility in a bankruptcy case – when compared and contrasted with a receivership matter.

Court-Appointed Receiver:

 

  1. Context: A court-appointed receiver is typically involved in a variety of legal contexts outside of bankruptcy, often in civil litigation or in situations involving business disputes, asset management, or regulatory issues. A receivership is not a cause of action. One may not file a lawsuit for receivership. A receivership is a remedy available in connection with existing litigation and it may be filed in either federal or state court.
  2. Role: A receiver is appointed by a court to take control of a business or assets to protect the interests of creditors or stakeholders, manage disputes, or preserve the assets pending the outcome of a legal case.
  3. Authority: Receivers can manage the operations of a business or liquidate assets as directed by the court. Their primary goal is often related to protecting and preserving assets rather than maximizing payments to creditors; however, a court may empower a receiver to sell assets for the benefit of creditor.
  4. Legal Framework: Receivers operate under state law and the specific instructions of the court, which can vary widely depending on the situation and jurisdiction. There is a great deal of flexibility within a receivership. A receivership court is a court of equity.

How do receivers make money?

Receivers are paid in accordance with the Order Appointing Receiver. Ordinarily, a receiver is paid on an hourly basis and is required to circulate monthly reports including a statement of fees. Often, a receiver may pay himself/herself after circulation of a statement of fees as long as there are no objections. In other situations, a receiver may need to file a motion seeking a hearing to approve and pay fees. If funds are not available to pay the receiver (from estate assets), a receiver may borrow funds, under certain circumstances and subject to court approval, through the issuance of a receiver’s certificate. The receiver borrows funds from a lender subject to the terms contained in the certificate which serves  as the functional equivalent to a note. The certificate along with the order approving certificate may be recorded against the real property or a lis pendens may be filed to effectuate a lien if the recorder’s office will not record the certificate

What are the requirements of a receiver?

In order to be appointed as a receiver, a receiver must first be nominated by a party. A receiver generally must be qualified to serve as receiver over the particular asset(s) within the receivership estate. A receiver must have a properly formatted CV, references and he/she must qualify to obtain a receiver’s bond. Professional licenses and/or designations may be helpful for an individual to qualify as receiver; however, generally, there are no receiver-specific licenses to become a receiver.

What is the first role of the receiver?

The first role of the receiver is set forth in the Orde Appointing Receiver. Generally, a receiver must first qualify to serve as receiver by filing an oath and bond. Thereafter, the asset under receivership is obtained by the receiver. This is either done by obtaining physical possession of the asset or by notifying creditors/tenants of the appointment of receiver; thereafter, the receiver collects income of the property or the business. In a federal equity receivership, the receiver generally must file an Initial Report within ten days of his/her appointment.

What is the role of a court-appointed receiver?

The role of a court appointed receiver is defined primarily by the order appointing receiver or any subsequent orders issued by the court clarifying the duties, obligations, authority and responsibilities of receiver. Traditionally, a receiver is known as an arm or agent of the court. The receiver is the court’s receiver. Other than in instances where a receiver is appointed in aid in execution of judgment, or the receiver is working solely for the benefit of the judgment creditor, a receiver is neutral. A receiver may simply be appointed to preserve and maintain an asset or the receiver may be charged with an invasive, complex, costly and burdensome forensic accounting analysis of the operations of the business. This might include third-party claw-back litigation, claims procedures, sale of assets, contract analysis, defense and prosecution of existing and/or new litigation, tax administration, creditor and investor negotiations as well as the day-to-day operation of the business. In some instances a receiver will be required to provide monthly or quarterly reports to the court. Generally, a receiver will provide monthly or quarterly reports to the parties in the litigation. 

The role of the receiver will be impacted greatly by whether or not the receiver is a limited purpose receiver or an equity receiver. If the receiver is appointed on a limited basis then the receiver will generally take possession of assets that are collateral for a loan or a judgment. If a receiver is appointed on an equity basis then the receiver is actually the receiver over the ownership entity of the asset which might be real estate, intellectual property or a business. In this instance, the receiver actually operates the ownership entity as well as any underlying assets. The role of the receiver can change from time to time based upon further orders of the court as new information is learned or as the underlying litigation progresses. Existing litigation must be present in order for a receiver to be appointed. Receivership is not a cause of action; rather, it is an equitable remedy.

What happens when a receiver is appointed to a company?

When a receiver is appointed over a company, the receiver will generally undertake an analysis of the operations of the Company including taxes, receivables, payables, payroll, inventory, litigation, insurance, marketing, business licenses as well as an overall analysis regarding the propriety of the business itself to verify that it is operating in a lawful manner. Depending upon whether or not the long-term goal of the receivership is to operate the business as a going concern or to simply liquidate and sell the business, the receiver may or may not make the appointment of receiver public. In some instances the receiver is very concerned about relationships with trade vendors or customers. However, if the Company has been engaged in allegedly illegal conduct, than the receiver will likely immediately shut down operations. In some cases a receiver is appointed solely to perform a financial analysis of the company and will not be engaged in day-to-day operations at all.

A receiver generally has an obligation to all creditors including taxing agencies. A receiver will advise (not including some limited purpose receiverships) taxing agencies of the appointment of receiver and will need to undertake an analysis regarding what tax obligations may exist. The receiver will verify whether or not tax returns are current and appropriate professionals will be retained by the receiver to assist in the operation of the business. Key personnel will be interviewed and their role, function, compensation and performance will be  analyzed as will the policies and procedures of the company. A risk analysis may be performed regarding insurance, possible premises liability issues, OSHA and wage-hour compliance etc. The receiver has a duty to use reasonable care to manage the business and/or the assets owned by the business and to use his or her business judgment in doing so. In many instances this is challenging, especially in the early phases of the receivership because the receiver may not have access to good business records for the business owners may be actively interfering with the efforts of the receiver to perform his/her duties.

In many instances a company will continue to operate under the guidance of a receiver and very little changes will be apparent to the outside world. A receiver may be marketing the business for sale and will be preparing a due diligence package allowing third-party purchasers to evaluate and value the business. In other instances, a receiver may need to make material changes to the operation of a business when the receiver identifies problems based upon noncompliance of laws or customs and practices in the particular industry within which the business operates. Finally, a receiver may determine that it is required to immediately suspend operations of the business. This may occur for a variety of reasons including allegations of fraud, mismanagement, insolvency and/or other considerations. Each case stands on its own and is entirely different.

What are the responsibilities of a receiver?

The responsibilities of a receiver are specifically identified in the order appointing receiver. This may include financial analysis only. Or, it may include the actual operation of the business or real estate. The receiver may also only perform certain tasks based upon phases. For example, a receiver may be required to provide an initial report to the court after which the court will determine whether or not the receivership estate should or should not continue. Responsibilities of a receiver may also include addressing creditor claims, legal compliance with laws, codes and ordinances as well as tax obligations. However, the specific responsibilities are generally set forth in the initial or subsequent orders of the court and they may vary based upon the lifecycle of the receivership, new information as the case matures and possible changes in the underlying litigation. Essentially, a full equity receiver steps into the shoes of the owner and takes over operations of all elements of the business including taxes, investor relations, marketing, accounts payable, receivables or in the case of real estate, collection of rents, payment of invoices and repairs and maintenance of the property. A receiver may ultimately market and sell a business and/or real estate pursuant to existing or further orders of the court. It is important for a receiver not to take actions beyond those identified in the order appointing receiver.

Review the chapter authored by Mr. Donell

Reviving the financially distressed business book by written by Receiver Stephen Donell, CCIM, CPM

Reviving the Financially Distressed Business

Reviving The Financially Distressed Business is the essential guide for business owners and corporate leaders whose companies are under—or anticipating—financial difficulties. See Chapter 11, Receiverships, written by Court Receiver Stephen Donell, CCIM, CPM

Steve Donell’s contribution to the book “Reviving a Financially Distressed Business” reflects not only his expertise as a receiver, but his sound judgment on how receivership can be used to effectively advance a financially troubled business.” 

– Brian Davidoff, Esq. Author and Editor

About our court-appointed receivers

A family business, founded by James Donell, we are leaders in the receivership industry.

With prior experience as President of the California Receivers Forum (CRF) Los Angeles/Orange County Chapter, President of the National Association of Federal Equity Receivers (NAFER) and panel members at receiver conferences, we are leaders in our industry.

Stephen J. Donell Los Angeles

President of FedReceiver, Inc., Jalmar Properties, Inc. and Donell Expert Services, Inc.

Todd D. Donell Los Angeles

Executive Vice President of FedReceiver, Inc. and Jalmar Properties, Inc.

James H. Donell Los Angeles

Founder and Chief Executive Officer of FedReceiver, Inc. and Jalmar Properties, Inc.

Sarah R. Bates Los Angeles

Vice President of FedReceiver, Inc. and Jalmar Properties, Inc.

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