Receivers acts as neutral fiduciary who are appointed by the court either on state level or on federal level. The main duty of these people is to have proper control over the business, properties and other assets which are engaged in litigation. They need to preserve these assets until the outcome of the litigation is reached. Receivers can be appointed during the pre as well the post judgment to acts as provisional remedy. Many a times they are also referred as the court’s hands and the eyes.
Receivers perform various functions on the guidance of the court. They research into the past records of the account to find out the details of various funds invested. Searching for the hidden assets and conducting general discovery is also performed by them.
They are provided with certain powers by the court and thus the parties involved in the litigation need to provide all the details and information required by them.
Receivers are made their payment through the estate in question’s asset and thus the parties involved in the litigation are not alone to bear their cost. Their appointment is also beneficial to the court as they avoid unnecessary court appearance by the parties involved.
Tags: Judicial Receiver, Litigation