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Will the receivership apply to deprive someone who is Can you appoint the Clerk of Court as receciver? NO.
in possession of the property?
NO
SEC 4 OATH and BOND of Receiver
PARTITION The appointment of a receiver creates no lien in favor
While in a partition proceeding it is generally of any party applying for it; it gives no advantage or
unnecessary for the court to appoint a receiver, preference to such parties over other claimants to the
however, where the relations among the co-owners property. It does not determine the rights of the parties
are strained, and no satisfactory arrangement for or prejudge the parties' purported rights in the main
administration can be accomplished, the appointment suit
of a receiver is not an abuse of discretion.
What is the guiding principle of the receivership? Property is under Custodia Legis
The prevention of imminent danger
If the plaintiff, in its petition for receivership fails Does the receiver have power to enter into contract?
to present any evidence to establish the NO, only WITH leave of court.
requisite condition that the property is in
danger of being lost, removed or materially A receiver is to be regarded as the arm, officer or
injured, unless a receiver is appointed to guard representative of the court appointing him. The
and preserve it, the petition for receivership will custody of the receiver is the custody of the court. His
be denied acts and possession are the acts and possession of
The appointment of a receiver is not proper the court, and his contracts and liabilities are, in
where the rights of the parties are still to be contemplation of law, the contracts and liabilities of the
determined by the court one of whom is in court. As a necessary consequence, a receiver is
possession of the property. subject to the control and supervision of the court at
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every step in his management of the property or funds sustain by reason of the appointment of a receiver in
placed in his hands. On the other hand, it is the duty case the applicant shall have procured the
of the court to protect the possession of its receiver appointment without sufficient cause (Sec. 3), or
and to prevent all interference with him in the against the counter-bond posted by the party opposing
performance of his official functions and duties. So the appointment of the receiver, conditioned to pay all
thoroughly is this recognized, that it is well-settled that the damages the applicant may suffer by reason of the
any unauthorized interference with a receiver's acts, omissions, or other matters in the application for
possession of the property committed to his charge, is receivership.
a contempt of the court by which he was appointed. It
is the relationship which exists between the court and "Where the damages were not for unlawful
the receiver which has led to the general rule. appointment of a receiver, but for the receiver's
mismanagement, the liability of the sureties on the
SEC 7 liability for REFUSAL or NEGLECT to deliver bond could only be enforced by a separate action and
property to receiver. not by a mere motion in the receivership proceedings.”
SEC 9 Judgement includes recovery against The bond is given by the receiver
SURETY.
The liability arises from Receiver’s own negligence
It has been held that the procedure laid down in For the acts of the receiver after his appointment no
Section 20, Rule 57, in conjunction with this section, is one is responsible but himself and his sureties
to be followed only in the execution of a bond filed by
either party in the case where the receiver is appointed
but not in the execution of the receiver's bond which is
filed by the receiver himself and his surety. In other
words, the procedure outlined in Rule 57, Sec. 20, is
required to be followed only in proceedings against the
bond filed by the applicant for receivership, which
Discussion 3/21/2019
answers for the damages that the adverse party may
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The receiver should be a neutral person, he should not
be a representative of the parties, someone agreed
upon by the parties, where there is no bias.
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Rule 60
Replevin
SEC 1 APPLICATION
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