Opinion ID: 2206450
Heading Depth: 1
Heading Rank: 4

Heading: Appointment of a Receiver

Text: Bitter asserts it was error for the trial court to reject his application for appointment of a receiver. The trial court found a receiver was not necessary to conserve or protect the assets of the business. The trial court further found that the Smiths had established an escrow account in which they segregated one-third of the income pending the outcome of this litigation; that Bitter had access to the books and records; and that the business was well and efficiently operated with careful management and control of the cash flow. Ordinarily a receiver is appointed to liquidate an insolvent business; but circumstances may dictate the appointment of a receiver in the absence of insolvency or dissolution. First National Bank of Waterloo v. Fireproof Storage Building Co., 199 Iowa 1285, 1298, 202 N.W. 14, 20 (1925). In the present case the trial court refused to appoint a receiver for a business operating successfully at a substantial profit. The appointment of a receiver is within the sound discretion of the trial court. Holden v. Construction Machinery Co., 202 N.W.2d 348, 360 (Iowa 1973). We find no cause to say the trial court abused its discretion in denying Bitter's application.