Opinion ID: 4543040
Heading Depth: 2
Heading Rank: 1

Heading: Legal Background – Receivership

Text: A district court may appoint a receiver “to take the control, custody[,] or management of property . . . involved in litigation, to preserve the property, and to receive the rents, issues[,] and profits thereof pending the ultimate determination of such litigation.” Comm’r v. Owens, 78 F.2d 768, 773 (10th Cir. 1935); see 12 Charles A. Wright & Arthur R. Miller, Federal Practice and Procedure: Civil § 2981 (3d ed., Apr. 2020 update) (“Wright & Miller”). “When a district court creates a receivership, its focus is to safeguard the assets, administer the property as suitable, and to assist the district court in achieving a final, equitable distribution of the assets if necessary.” S.E.C. v. Vescor Capital Corp., 599 F.3d 1189, 1194 (10th Cir. 2010) (quotations omitted). Once appointed, a receiver is “vested with complete jurisdiction and control of [the] property with the right to take possession thereof.” 28 U.S.C. § 754; see Wright & Miller § 2985 (“Section 754 of Title 28 gives the appointing court and the receiver exclusive jurisdiction and control over all of defendant’s property in whatever district it may be situated . . . .”). A receiver “is an officer . . . of the court,” not the parties’ agent. Zacarias v. Stanford Int’l Bank, Ltd., 945 F.3d 883, 896 (5th Cir. 2019) (quotations omitted).