Topic Receiver TopicsReceiverAppointment
The courts have sometimes struggled with the issue of a receiver appointed pursuant to a charging order. Section 503(b)(1) states that the court may "appoint a receiver of the distributions subject to the charging order, with the power to make all inquiries the judgment debtor might have made . . .." Frequently, creditors attempt to have the receiver appointed for the entity itself, and take over the control and operations of the entity.
Thus, the receiver has essentially two powers: (1) receive distributions, and (2) obtain information from the entity.
The first power (receive distributions) is an oddity, because the distributions should be going from the entity directly to creditor anyway, and it is difficult to image situations where it would be beneficial to interpose the receiver in the middle.
The second power (obtain information from the entity) is the more practical purpose of the receiver, since the creditor is entitled to whatever information about the entity that the D/M is entitled, but the D/M may be less than cooperative in seeking that information or in providing it to the creditor.
The proper workings of the receiver could be better spelled out in an expanded Comment.
- 2019.11.24 ... Imputed Distributions To Evade Charging Order Result In Receiver And Sale Of Assets In Earthgrains
- 2018.09.29 ... Morgan Stanley Uses Charging Order As An Entree To Appointment Of Receiver
- 2017.05.22 ... A Charging Order A Day Keeps The Receiver Away In Pajooh
- 2016.12.16 ... Charging Order Gives Creditor Priority Claim To Defeat A Receiver In Detroit Memorial
- 2012.07.27 ... Jonas: Receiver Appointed By Montana Court To Take Control Of LCC Whose Interests Had Been Charged
- 91st Street Joint Venture v. Goldstein, 691 A.2d 272, 114 Md.App. 561 (Md.Sp.App., 1997).
- Deutsch v. Wolff, 7 S.W.3d 460 (Mo.App.W.D.,1999).
- Earthgrains Baking Co., v. Sycamore, 2022 WL 433486 (10th Cir., Feb. 14, 2022).
- Earthgrains Baking Companies, Inc. v. Sycamore Family Bakery, Inc., 2019 WL 6001940 (D.Utah, Nov. 14, 2019).
- Jonas v. Waterman, 2013 WL 6231619 (D.Mont., Dec. 2, 2013).
- Limbright v. Hofmeister, 2012 WL 5605437 (E.D.Ky., 2012).
- Medipro Medical Staffing LLC v. Certified Nursing Registry, Inc., 2021 WL 388660 (Feb. 4, 2021).
- Morgan Stanley Smith Barney LLC v. Johnson, 2018 WL 4654711 (D.Minn., Sept. 27, 2018).
- Morgan Stanley Smith Barney LLC v. Johnson, 2020 WL 1222684 (March 13, 2020).
- Pajooh v. Royal West Investments LLC, Series E, 2017 WL 1173892 (Tex.App., March 30, 2017).
- SEC v. Detroit Memorial Partners, LLC, 2016 WL 6595942 (N.D.Ga., Nov. 8, 2016).
- Single Box, LP v. Del Valle, 2022 WL 1694776 (C.D.Cal., April 6, 2022).
- U.S. v. Zabka, 900 F.Supp.2d 864 (C.D.Ill., 2012).
- Williams v. The Estates LLC, 2022 WL 17490729 (M.D.N.C., Dec. 7, 2022).