Roles of a Receiver
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, and (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.
