§ 21.5 Grounds for Appointment of Receiver

• Library: Oregon Civil Pleading and Litigation (OSBar) (2020 Ed.)

§ 21.5 GROUNDS FOR APPOINTMENT OF RECEIVER

As set forth in § 21.5-1 to § 21.5-4, the grounds for appointment of a receiver may be statutory, based in common law, or founded on the court's inherent authority.

COMMENT: Although a receiver can be used in a wide variety of situations, a receiver is most commonly used in civil litigation in connection with collection of commercial loans, protection of endangered property, liquidation of business entities, and enforcement of judgments. Governmental entities also seek the appointment of a receiver in connection with enforcement of state and federal law.

Regardless of the grounds for appointment, the appointment of a receiver is discretionary, not mandatory. ORS 37.060(1) (stating that the court may appoint a receiver); McMunn v. M L & H Lumber, Inc., 247 Or 319, 324, 429 P2d 798 (1967); Canada Life Assurance Co. v. LaPeter, 563 F3d 837 (9th Cir 2009).

§ 21.5-1 Statutory Grounds in Oregon

Under the ORC and the Oregon Rules of Civil Procedure, there are many situations in which a receiver may be appointed.

A court may appoint a receiver in the following cases, upon motion by any person or upon its own motion:
(a) Before judgment, if the property that is the subject of the action, or rents or profits deriving from that property, are in danger of being lost or materially injured or impaired.

(b) After judgment, if reasonably necessary to carry the judgment into effect.

(c) After judgment, to dispose of property according to the judgment, to preserve the property during the pendency of an appeal or when an execution has been returned unsatisfied and the debtor refuses to apply the property in satisfaction of the judgment.

(d) In an action under ORS 95.200 to 95.310 [pertaining to fraudulent transfers, including an action "to subject property or a fund to the payment of a debt," ORCP 80 B(4)];
(e) When property is attached by a creditor, if:

(A) The property is of a perishable nature or is otherwise in danger of waste, impairment or destruction; or
(B) The debtor has abandoned the property and receivership is reasonably necessary to conserve, protect or dispose of the property.

(f) After judgment, either before or after the issuance of an execution, to preserve, protect or prevent the transfer of property subject to execution and sale thereunder.

(g) When an entity has been dissolved or is insolvent or in imminent danger of insolvency, if receivership is reasonably necessary to protect the property of the entity or

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