Use of Los Angeles Receiver in Corporate/Partnership Disputes
One of the most beneficial remedies available to parties that are engaged in corporate/partnership disputes is the use of a court appointed receiver. A receiver may be nominated by a party in California in a variety of circumstances including actions filed involving breach of contract and breach of fiduciary duty.
Breach of contract claims can include violations of membership agreements, loan agreements, payment of accounts payables and security agreements. In addition, a receiver may be sought in connection with causes of action involving fraudulent transfers pursuant to California Civil Code § 3429.04(a)(1)) (Actual Fraud) and Civil Code §§ 3429.04(a)(2)(A) and (B) and §3439.05 (Constructive Fraud).
The specific authority for appointment of receiver is found in California Civil Code Section §564(b)(1), (6) and(9). A court appointed receiver in this circumstance is often granted the powers to take possession, custody and control of defendant’s tangible and intangible assets and property, including the rights and obligations to manage, operate and control the same pursuant to the order appointing receiver. Assets may include accounts receivables, company books, records and equipment, cash, inventory, intellectual property and other contracts such as lease agreements.
This remedy allows the “pause button” to be pushed when funds and/or assets are diminishing, wasting and/or are being improperly managed by a party. A court appointed receiver can perform an analysis of short term and long term assets/liabilities, the source and use of cash and a report may be provided to all parties regarding the financial condition of the company. Ultimately, the receiver can, pursuant to court order, distribute remaining cash after an asset sale, to the secured creditors in order of priority.
If you are in need of a Los Angeles court appointed receiver, contact the receivership specialists at FedReceiver. Stephen J. Donell, President of FedReceiver, Inc. has served as receiver in state and/or federal court in connection with business disputes, divorce, real estate, real estate, bankruptcy, judgment collection, Ponzi schemes and accounts receivable financing. He has recovered assets throughout the United States and internationally. Contact us today to learn more about how we can fulfill your receivership needs.