California Code of Civil Procedure Sections 564-570 governs Receivership and provides in relevant part:
Civ. Code, Sec. 564
Civ. Code, Sec. 567 provides, with respect to the oath and undertaking of court-appointed receivers:
“Before entering upon the duties of a receiver:
The receiver’s bond is usually fixed high enough to cover the value of any cash or transferable personal property coming into the receiver’s possession. It is the applicant’s responsibility to propose the amount of the bond, but the opposing party may propose a higher amount. (California Rules of Court 1902.5.) Wherever possible, counsel should submit affidavits stating facts justifying the amount of bond. (Id.)
Civ. Code, Sec. 568 sets forth the powers of a receiver:
“The receiver has, under the control of the Court, power to bring and defend actions in his own name, as receiver; to take and keep possession of the property, to receive rents, collect debts, to compound for and compromise the same, to make transfers, and generally to do such acts respecting the property as the Court may authorize.”
It is held that a receiver may not be sued without leave of court. Ostrowski v. Miller (1964) 226 Cal.App.2d 79, 84-85.
In the context of a forced sale or winding up of a business entity, “[t]he receiver's powers included enforcing and collecting debts, instituting lawsuits on behalf of [entity] represented to preserve and protect the [...] assets, discharge obligations of business against the funds in [its] possession, and engaging the services of counsel.” (O'Flaherty v. Belgum (2004) 115 Cal.App.4th 1044, 1048.)
“A receiver is an officer of the court possessing the property for the court. (Pacific Indem. Co. v. Workers' Comp. App. Bd. (1968) 258 Cal.App.2d 35, 40.) Consequently, a receiver is liable in tort solely in an official capacity, not a personal one. (Sealite, Inc. v. Finster (1957) 149 Cal.App.2d 612, 617-618; Chiesur v. Superior Court (1946) 76 Cal.App.2d 198, 200-201.) ‘He is not personally liable for torts committed in the performance of his receivership duties; liability is in his official capacity only, to be satisfied from receivership funds.’ (6 Witkin, Cal. Procedure (3d ed. 1985) Provisional Remedies, Sec. 364, at 304-305.).”
A receiver is personally liable if he does not give priority to the tax liens of the United States (31 U.S.C. ss 191, 192, supra; King v. United States, supra, 379 U.S. 329.) Further, the withholding and Federal Insurance Contributions Act taxes accruing during the receivership constitute expenses of administration of high priority and are to be held in trust by the receiver for the United States (Cf., Estate of Dwyer, 168 Ca.App.2d 264, 267.) While California is not armed with such formidable statutes imposing personal liability upon a receiver, it is clear that the state sales taxes and unemployment insurance contributions are entitled to high priority in payment (Cf., Estate of Morris, supra, 37 Cal.App.2d 155, 157—158.)
Nov 13, 2020
Placer County, CA
Sep 29, 2020
Placer County, CA
Aug 11, 2020
Placer County, CA
Aug 06, 2020
Sacramento County, CA
Jul 29, 2020
San Francisco County, CA
Jul 24, 2020
Sacramento County, CA
Jul 13, 2020
San Francisco County, CA
Jun 25, 2020
Sacramento County, CA
Jun 25, 2020
Sacramento County, CA
Jun 25, 2020
Sacramento County, CA
Jun 17, 2020
Sacramento County, CA
Jun 16, 2020
San Francisco County, CA
Jun 04, 2020
San Francisco County, CA
Jun 04, 2020
San Francisco County, CA
May 27, 2020
San Francisco County, CA
May 22, 2020
San Francisco County, CA
May 13, 2020
Santa Clara County, CA
Apr 28, 2020
San Francisco County, CA
Apr 21, 2020
San Francisco County, CA
Apr 15, 2020
San Francisco County, CA
Apr 15, 2020
San Francisco County, CA
Mar 19, 2020
Placer County, CA
Mar 17, 2020
San Francisco County, CA
Mar 16, 2020
Placer County, CA
Mar 12, 2020
San Francisco County, CA
Please wait a moment while we load this page.