The Powers and Role of a Receiver

Sometimes the court may deem it necessary to appoint a receiver as a neutral party who will oversee the business of one of the parties in a complicated lawsuit, oftentimes after all efforts have been exhausted. Either party to the lawsuit may also request a receiver at any time during the case. Receivership laws are meant to ensure that the property or business in dispute is protected from deterioration while the lawsuit is in progress. To get through the process, it is important for the parties to understand the role of the neutral party.

What is the Role of a Receiver?

The purpose of the receiver is to preserve property or other assets of the parties subject to litigation in an effort to ensure an equitable outcome for all parties involved. A receiver may be charged with the responsibility of overseeing business processes and may collect income and profits during the process to avoid the risk of having income generated by the business from being misappropriated.

A receiver may also facilitate the resolution of the dispute between the parties. The Plaintiff(s) and Defendant(s) are more likely to consider the suggestions of a neutral party. If a lender requires confirmation that the property in question will still be available after the case is concluded, he can request this confirmation from the receiver.

The details of a property may be documented in order to facilitate dispute resolution in the future. Pictures and copies of documents may be taken for future reference. Sometimes the borrower and the lender may be at odds as to the actual value of the property. The receiver provides a neutral and objective perspective in order to enhance trust in the receivership process.

Another function of a receiver is to protect a creditor from the risk of liabilities that may be incurred after taking over a property. Receivership laws allow for a considerable amount of flexibility in the powers granted to a receiver as the lawsuit is in progress.

Powers of a Receiver

Before being appointed, a receiver is expected to obtain a bond and file an oath with the Court. Once appointed, Ohio statues give powers to facilitate the process. A receiver can maintain a bank account, enter into leases, deeds, and contracts, and engage in any business activity that is deemed necessary and reasonable to ensure the maintenance of the property during the court process.