Opinion ID: 1752744
Heading Depth: 1
Heading Rank: 3

Heading: Appointment of trustee

Text: This Court will affirm the trial court's judgment as to the appointment of a trustee unless there is no substantial evidence to support it, unless it is against the weight of the evidence, or unless it erroneously declares or applies the law. Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976). Statutory interpretation is an issue of law that this Court reviews de novo. Blakely v. Blakely, 83 S.W.3d 537, 540 (Mo. banc 2002). The relatively rare fact that the same individual serves as the receiver of both the RRG and Pro Med receivership estates creates potential for conflicts of interests. The doctors have alleged that the receiver has several conflicts of interests, including those caused by potential claims that RRG may have against Pro Med. Section 375.710 provides: In case of any conflict of interests on any matter, or concerning the enforcement or settlement of any conflicting claims between two or more insurers, the settlement and winding up of whose affairs shall be under the charge of the director, it shall be the duty of the director, and the right of any person interested in any of the insurers to report the fact of conflict and the question or questions involved to the court in which any of the causes is pending, and such court, thereupon, shall have power to appoint a trustee, to have charge and control of the interests of any of the insurers as regards the settlement or enforcement of its claims in respect to the matter in controversy, or to make such other orders providing for the settlement, adjustment or enforcement of the rights of the insurer in the matter as to the court shall seem best adapted to the protection of the rights of all. When a receiver acts on behalf of two contractually related entities, the court must be especially sensitive to any reported conflicts of interests. Regardless of whether a conflict of interests is reported to the court inconveniently late in the proceedings, a court cannot refuse to fashion appropriate protection of the rights of all interested persons. In this case, the receiver suspected that he might be operating under a conflict of interests, and the doctors asserted several major conflicts of interests. At a minimum, the doctors' potential derivative claims create in the receiver a conflict of interests. The court should fashion a remedy for the conflict of interests on the part of the receiver that the court finds best adapted to the protection of the rights of all interested persons. The trial court's judgment not to fashion a remedy for the receiver's conflict of interests is reversed. The cause is remanded. All concur.