Receivership in California
Legal Update - July 2018
Receivership is a very effective means to either preserve assets as a provisional remedy or for post judgment enforcement by creditors. It is particularly useful for assets that are not amenable to direct enforcement of a judgment. The California Code of Civil Procedure (CCP § 564) provides the grounds for appointment of receiver. CCP § 564(3), provides "After judgment, to carry the judgment into effect" and CCP § 564(4) provides "after judgment, to dispose of the property according to the judgment, or to preserve it during the pendency of an appeal". This can be a very effective remedy to recover under judgment, including certain intangible assets. Anthony Murray acted as Court Appointed Receiver, appointed by the New York State Supreme Court, New York County. He was receiver of the assets of a Television Station, including its Federal Communications Commission ("FCC") licenses. He took control of the FCC licenses on behalf of the court and successfully arranged their sale. The creditors in the receivership were paid in their entirety. The total value of the receivership proceeds was $7,000,000. For further information about receivership in New York or California please contact us.