Local Rule Civil Rule 66.1: Receivers

Civil Rule 66.1 Receivers 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. Temporary Receivers. A temporary receiver may be appointed without notice to the party sought to be subjected to a receivership in accordance with the requirements and limitations of Rule 65(b), Fed. R. Civ. P. 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 must be served on all parties. The defendant must provide the temporary receiver (or, if there is no temporary receiver, the plaintiff) within seven (7) days a list of the defendant's creditors, and their addresses. Not less than seven (7) days before the hearing, the temporary receiver (or, if none, the plaintiff) must mail to the creditors listed the notice of the hearing and file the proof of mailing. 3. Bond. A judge may require any receiver appointed to furnish a bond in such amount as deemed reasonable. b. Employment of Experts. The receiver must not employ an attorney, accountant or investigator without an order of a judge. The compensation of all such employees must be fixed by the Court. c. Application for Fees. All applications for fees for services rendered in connection with a receivership must be made by petition setting forth in reasonable detail the nature of the services and must be heard in open court. d. Deposit of Funds. A receiver must deposit all funds received in a depository designated by a 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. e. Reports. Within thirty (30) days of appointment, a permanent receiver must file with the Court a verified report and petition for instructions, which must be heard on fourteen (14) 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 amounts of their claims. The petition must contain the receiver's recommendation as to the continuance of the receivership and the receiver's reasons. At the hearing, the judge will determine whether the receivership should be continued and, if so, will fix the time for future reports of the receiver. f. Notice of Hearings. The receiver must give all interested parties at least fourteen (14) days' notice of the time and place of all pertinent hearings of all: 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, the notice to state the services performed and the fee requested; or 5. Applications for discharge of the receiver.