Q: I was appointed state court receiver over a corporation. There are a number of pending lawsuits against the corporation. At the current time, there are few liquid assets and I would rather not use them to defend the lawsuits. Can the receivership court stay the lawsuits and require the claims be dealt with in a claims procedure in the receivership case?
A: It depends. The pivotal issue is whether the case you were appointed in is an action (C.C.P §22) or a special proceeding ( C.C.P. §23). The distinction is important because C.C.P. § 526(b)(1) prohibits an injunction: “to stay a ...
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