§26.2 - Appointment of Receiver

• Jurisdiction: Washington

§26.2 APPOINTMENT OF RECEIVER

This section discusses the appointment of a receiver, including who may be appointed, grounds for appointment, types of receivers, and the receiver's bond.

(1) Grounds for appointment of a receiver

RCW 7.60.025(1)(a)-(nn) enumerates in one location the various statutory grounds for appointment of a receiver previously scattered throughout the Revised Code of Washington. As set forth in the statute, there are numerous grounds for the appointment of a receiver, most of which are specific in nature and probably of little interest to most practitioners. Most receiverships are premised on the grounds enumerated in RCW 7.60.025(1)(a)-(b), which provides as follows:

(1) A receiver may be appointed by the superior court of this state in the following instances, but except in any case in which a receiver's appointment is expressly required by statute, or any case in which a receiver's appointment is sought by a state agent whose authority to seek the appointment of a receiver is expressly conferred by statute, or any case in which a receiver's appointment with respect to real property is sought under (b)(ii) of this subsection, a receiver shall be appointed only if the court additionally determines that the appointment of a receiver is reasonably necessary and that other available remedies either are not available or are inadequate:

(a) On application of any party, when the party is determined to have a probable right to or interest in property that is a subject of the action and in the possession of an adverse party, or when the property or its revenue-producing potential is in danger of being lost or materially injured or impaired. A receiver may be appointed under this subsection (1)(a) whether or not the application for appointment of a receiver is combined with, or is ancillary to, an action seeking a money judgment or other relief;

(b) Provisionally, after commencement of any judicial action or nonjudicial proceeding to foreclose upon any lien against or for forfeiture of any interest in real or personal property, on application of any person, when the interest in the property that is the subject of such an action or proceeding of the person seeking the receiver's appointment is determined to be probable and either:

(i) The property or its revenue-producing potential is in danger of being lost or materially injured or impaired; or

(ii) The appointment of a receiver with respect to the real or personal...