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Utah Litigation Attorney

A Receivership case is an insolvency proceeding. Like a bankruptcy; but you need to have a
Litigation Attorney to help you – especially if you have a business.
The rules governing Receiverships are not as well-defined as in a bankruptcy proceeding.  It is possible for someone who has made an investment or purchased an interest in a company or property to be drawn into a Receivership case based on the conduct of other persons or entities.  A lender holding a lien on property may also be drawn into a Receivership case if the property is subject to a Receivership order.

If you become part of a Receivership case or if a Receiver makes a claim against you, here are some important things to know:

  1. A Receiver is an officer appointed by the Court who is given custody of specified assets with direction to liquidate them and distribute the proceeds. A Court order is typically required to appoint a Receiver, and the terms of the order describe the Receiver’s duties and powers.
  2. The appointment of a Receiver often comes at the request of a government law enforcement agency, such as the United States Attorney’s Office or the Securities and Exchange Commission. When such an agency brings an enforcement action against someone, that person or entity’s assets may be placed in receivership to preserve them for the victims of wrongful conduct.
  3. The Receiver stands in the shoes of the owner(s) of the assets committed to his or her custody. For example, if an entire company is placed in Receivership, the Receiver stands in the shoes of that company.  Nevertheless, the Receiver may be given power to set aside or undo certain actions taken or transactions entered by the person or entity before the Receiver was appointed.
  4. A Receiver can only act in accordance with the instructions and authorizations of the Court that appointed him or her. If the general appointment order does not give specific authorization, then the Receiver must seek additional approval before pursuing a certain course of action.  For example, the Receiver must be previously authorized to file claims against third persons, to sell or abandon the assets placed in the Receiver’s custody, or to distribute the proceeds of assets liquidated.
  5. With the Court’s authority, a Receiver may file claims against third persons or entities to recover monies paid or assets transferred to them if the Receiver believes the circumstances were unlawful.
  6. The Court has broad power and discretion to fashion appropriate remedies in a Receivership case. For that reason the Court’s rulings on various issues may be handled differently than in a typical civil action.
  7. The Receiver is paid from the assets placed in his or her custody, and the Receiver’s fees have priority over other claims. Fees earned by the Receiver must be approved by the Court before they are paid, and typically are based upon rates and parameters set forth in the order of appointment.  Likewise, other costs incurred by the Receiver are reimbursed only after approval by the Court.
  8. In most civil litigation, parties reach a settlement because of:
  • The burden of legal expenses
  • The desire to avoid further litigation.

In a Receivership case, the Receiver often does not feel those motivations as would a party to a traditional lawsuit.  The Receiver does not have a client who is paying legal expenses from its own funds, but instead the Receiver is being paid from the assets of the receivership estate.  Also, being a Court-appointed officer, the Receiver does not have a personal connection to the issues of the case, and therefore does not face the emotional burden that often weighs upon a traditional civil litigant.

Free Consultation with Litigation Attorney

When you need a litigation lawyer, call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

Ascent Law LLC

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JEveland

About the Author

People who want a lot of Bull go to a Butcher. People who want results navigating a complex legal field go to a Lawyer that they can trust. That’s where I come in. I am Michael Anderson, an Attorney in the Salt Lake area focusing on the needs of the Average Joe wanting a better life for him and his family. I’m the Lawyer you can trust. I grew up in Utah and love it here. I am a Father to three, a Husband to one, and an Entrepreneur. I understand the feelings of joy each of those roles bring, and I understand the feeling of disappointment, fear, and regret when things go wrong. I attended the University of Utah where I received a B.A. degree in 2010 and a J.D. in 2014. I have focused my practice in Wills, Trusts, Real Estate, and Business Law. I love the thrill of helping clients secure their future, leaving a real legacy to their children. Unfortunately when problems arise with families. I also practice Family Law, with a focus on keeping relationships between the soon to be Ex’s civil for the benefit of their children and allowing both to walk away quickly with their heads held high. Before you worry too much about losing everything that you have worked for, before you permit yourself to be bullied by your soon to be ex, before you shed one more tear in silence, call me. I’m the Lawyer you can trust.