Local Rule 232: RECEIVERS

RULE 232 (Fed. R. Civ. P. 66)

RECEIVERS

(a) Definitions. For purposes of this Rule:

(1) "temporary receiver" shall mean a receiver appointed without notice or on less than the notice provided in L.R. 230 to the party sought to be subjected to the receivership, and

(2) "receiver" shall mean any receiver appointed after the giving of either (i) at least the notice of hearing upon the motion for appointment of receiver required by L.R. 230, or (ii) such lesser notice of hearing on the motion as may be agreed to by the party sought to be subjected to the receivership and the Court.

(b) Notice: Temporary Receiver. A temporary receiver shall not be appointed without notice to the party sought to be subjected to receivership except upon an appropriate showing of necessity and immediacy of potential harm. If a temporary receiver is appointed ex parte, the party seeking and securing such appointment shall give notice forthwith of the temporary receiver's appointment, any terms and conditions pertaining thereto, and the date calendared for subsequent hearing on the question of continuance of the receivership.

(c) Continuance of Receivership. Upon appointment of a temporary receiver, the Court shall calendar a hearing on the continuation of the receivership. The determination whether to continue the receivership shall be made as set forth in (d), and no weight shall be given to the fact that a temporary receiver was appointed.

(d) Appointment of a Receiver. A receiver may be appointed upon the notice set forth in (a)(2). Motions for appointment of a receiver need not be preceded by a motion for appointment of a temporary receiver.

(e) Reports of Receivers.

(1) Unless otherwise ordered by the Court, at least one (1) day before the hearing provided in (c), the temporary receiver shall file and personally serve a summary report of the temporary receivership.

(2) At such time as the Court may direct, and at least once a year, a receiver shall file and serve a report that shall be heard with notice to all parties in accordance with L.R. 230. The report shall contain (i) a summary of the operations of the receiver, (ii) an inventory of all the assets and their value, (iii) a schedule of all the receiver's receipts and disbursements, (iv) the receiver's recommendations for a continuation or discontinuation of the receivership and the reasons therefor, and (v) such other matters as the Court may direct. At the hearing, the Court shall approve or disapprove the receiver's report and determine whether the receivership shall be continued.

(f) Notice of Hearings. Unless the Court otherwise orders, L.R. 230 shall apply to all motions by the receiver.

(g) Employment and Compensation of Attorneys, Accountants, and Investigators. A receiver shall not employ an attorney, accountant, or investigator without first obtaining an order of the Court authorizing such employment, which order may set forth a tentative basis for computation of compensation. The actual compensation of such persons shall subsequently be fixed by the Court, after hearing, upon the applicant's affidavit setting forth in reasonable detail the nature of the services and the existence of any agreements concerning the amount of compensation to be paid.

(h) Deposit of Funds. A receiver shall deposit all funds received in a depository designated by the Court, entitled "Receiver's Account" together with the name and number of the action. See L.R. 150.

(i) Undertaking of Receiver. A receiver shall not act until a sufficient undertaking as determined by the Court is filed. See L.R. 151.