Receivers are agents of the court and may be appointed only when authorized by statute. (Marsch v. Williams (1994) 23 Cal.App.4th 238, 245.) A receiver is appointed to take charge and manage property which is subject to litigation, for the purpose of its preservation and disposition according to the final judgment. (Code of Civ. Proc., § 564.)
The court may appoint a receiver where there is evidence that a plaintiff has at least a probable right or interest in the property sought to be placed in receivership and that the property is in danger of destruction, removal or misappropriation. (Sachs v. Killeen (1958) 165 Cal.App.2d 205, 213.)
“A receiver may be appointed by the court in which an action or proceeding is pending, or by a judge thereof, in the following cases:
(Code of Civ. Proc., § 564(b).)
The moving party has the burden of showing that there is a danger of irreparable injury to the moving party and that the receivership is necessary to prevent the injury. (Alhambra-Shumway Mines, Inc. v. Alhambra Gold Mine Corp. (1953) 116 Cal. App. 2d 869, 873-874.) The moving papers must allege facts establishing one of the statutory grounds for appointment of a receiver. (Miller v. Oliver (1917) 714 Cal. 407, 410.) “Evidence to justify the appointment of a receiver may be presented ‘in the form of allegations in a complaint or other pleading, by affidavit or by testimony.’” (Armbrust v. Armbrust (1946) 75 Cal.App.2d 272, 274-275.)
The appointment of a receiver rests largely in the discretion of the trial court. (Maggiora v. Palo Alto Inn, Inc., (1967) 249 Cal.App.2d 706, 710.) The “power to appoint a receiver is a delicate one which is exercised sparingly and with caution, and only in an extreme case under such circumstances as demand or require summary relief, and never in a doubtful case or where there is no necessity or occasion for the appointment." (Morand v. Superior Court (1974) 38 Cal.App.3d 347, 350.) In determining whether to appoint a receiver, the Court considers the availability and efficacy of other remedies in determining whether to employ the extraordinary remedy of a receivership. (City & County of S.F. v. Daley (1993) 16 Cal. App. 4th 734, 745.) Ordinarily, if there is any other remedy, less severe in its results, which will adequately protect the rights of the parties, a Court should not take property out of the hands of its owners. (Alhambra-Shumway Mines, Inc. v. Alhambra Gold Mine Corp. (1953) 116 Cal. App. 2d 869, 873.)
“Before entering upon the duties of a receiver:
(Code of Civ. Proc., § 567.)
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