Local Rule LR 63.1: Receiverships

LR 63.1 - Receiverships a. Appointment of Receivers. Application for the appointment of a receiver may be made after the complaint has been filed and the summons issued. 1. Emergency Receivers. An emergency receiver may be appointed without notice to the party sought to be subjected to a receivership. As soon thereafter as may be practicable, the party who obtained the emergency receivership must seek appointment of a permanent receiver. 2. Permanent Receivers. A permanent receiver may be appointed after notice and hearing upon an order to show cause. This order will be issued by a judge upon appointment of a temporary receiver or upon application of the plaintiff and will be served on all parties. The defendant must provide to the temporary receiver (or, if there is no temporary receiver, the plaintiff) within seven (7) days after being served with the order a list of defendant's creditors and their addresses. Not less than five (5) days before the hearing, the temporary receiver (or, if none, the plaintiff) must mail to the creditors listed a notice of hearing, and file proof of mailing.

b. Bond. A judge may require any receiver appointed to furnish a bond in an amount which the judge deems reasonable.

c. Employment of Experts. The receiver must not employ an attorney, accountant, or investigator without an order of a judge. The compensation of all such persons will be fixed by the judge.

d. Application for Receiver's Fees. An application for receiver's fees must be made by a petition setting forth in reasonable detail the nature of the services rendered. Proceedings on fee applications will be heard in open court, unless all parties waive their appearance in writing.

e. Deposit of Funds. A receiver must deposit all funds received in a depository designated by the judge, entitling the account with the name and number of the action. At the end of each month, the receiver must deliver to the clerk a statement of account and the canceled checks.

f. Reports by Receiver. Within twenty-eight (28) days of appointment, a permanent receiver must file with the Court a verified report and petition for instructions. The petition will be heard on seven (7) days' notice to all known creditors and parties. The report must contain a summary of the operations of the receiver, an inventory of the assets and their appraised value, a schedule of all receipts and disbursements, and a list of all creditors, their addresses, and the amount of their claims. The petition must contain the receiver's recommendation as to the continuance of the receivership and reason for the recommendations. At the hearing, the judge will determine whether the receivership will be continued and, if so, the judge will fix the time for future reports of the receiver.

g. Notice of Hearings. The receiver must give all interested parties at least ten (10) days' notice of the time and place of hearings concerning: 1. Petitions for the payment of dividends to creditors; 2. Petitions for confirmation of sales of property; 3. Reports of the receiver; 4. Applications for fees of the receiver or of any attorney, accountant or investigator, with a statement of services performed and the fee sought; and 5. Applications for discharge of the receiver.