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Who or What is a Receiver?

            Who or what is a Receiver? 

            A Receiver is an independent or neutral person or entity appointed by the Court to manage money or property during the course of a lawsuit.

            A Receiver exercises powers for the common benefit of all parties in interest, owing loyalty only to the Court and acting solely for the benefit of the property concerned, even if the Receiver is recommended by or appointed at the request of a party to the lawsuit.  The Receiver reports only to the Court, and shall not favor or be influenced by any of the parties to the lawsuit.

            The Receiver is typically obligated to file monthly, or at least regular reports with the Court itemizing all funds or property it has received and/or spent.

Traditional types of Receivership are as follows:

1.          Preserving real property during a foreclosure proceeding when the property is in danger of being lost, removed, or materially injured;

2.          Protecting commonly owned property or funds in dispute or in danger of injury, waste or dissipation;

3.          Enforcing a judgment;

4.          Disposing of property subject to a judgment or to preserve such property pending appeal;

5.          Winding up of a dissolved corporation;

6.          Managing the affairs of a corporation whose owners are deadlocked and cannot agree as to management decisions or that is facing insolvency.

            The appointment of a Receiver can be a powerful tool when properly utilized by a party in a lawsuit.