QUESTION: I am a receiver appointed by a court in California in a contentious case. One of creditors has threatened to sue me in Nevada were he is located. How can this creditor sue me? I am a receiver appointed by the Court!

ANSWER: Welcome to the gritty world of receiverships. While you are a court appointed receiver, and may personally have quasi-judicial immunity, you can still be sued. Your question is unclear as to why the creditor wants to sue you and whether he intends to sue you in your official capacity as receiver or individually. Generally, receivers do have quasi-judicial ...

Most employers have an “introductory” or “probationary” period for new full-time employees. This period is usually defined as a set period of time following the date of hire, usually 90 days in length, during which a new employee is considered to be on “introductory status” and the employee and the employer get acquainted. During the introductory period, new employees are eligible only for certain benefits, such as Workers' Compensation insurance and Social Security. Employers usually inform new hires that the period may be extended if the employer determines that ...

QUESTION: I am a receiver. I filed a fraudulent transfer action against the mother of the defendant in the main case in which I was appointed. I only discovered six weeks ago that the defendant had transferred hundreds of thousands of dollars to his mother, approximately 4½ years ago, in order to, I believe, hide assets from creditors pursuing him. Counsel for the mother claims that the causes of action I am asserting against the mother are barred by the statute of limitations. How can that be when I only just obtained the documents showing the transfers to the mother?

ANSWER: For actual ...

QUESTION: My cousin, who is a lawyer, asked me to act as a receiver in a case where he represents the plaintiff. Is there some prohibition on my doing so? Am I ineligible to act as receiver because of our family relationship?

ANSWER: In California, Code of Civil Procedure § 566(a) sets forth who is ineligible to be appointed a receiver. It provides: “No party, or attorney for a party, or a person interested in an action, or related to any judge of the court by consanguinity or affinity within the third degree, can be appointed receiver therein without the written consent of the parties, filed ...

QUESTION: I have noticed language in a number of receivership orders providing that the receivership entities’ officers and directors are removed and their powers are vested in the receiver and further enjoining the officers and directors from filing a bankruptcy petition on behalf of the entity placed in receivership. Are such provisions effective in preventing former management from commencing a bankruptcy for the receivership entity and, if a petition is filed, can the receiver easily have the case dismissed because the persons filing the bankruptcy petition have no ...

We recently posted information concerning OSHA’s new training requirements that are designed to align its Hazard Communication Standard with the United Nations’ Globally Harmonized System of Classification and Labeling of Chemicals (see post here). Since that time, I have been asked if the requirements apply to office environments. The short answer is that the requirements apply to every employer that has hazardous chemicals in the workplace. OSHA estimates that this includes about 5 million employers in the United States, a figure which undoubtedly includes more than a ...

QUESTION: I have been appointed receiver in a case where the defendant appealed my appointment. If the appeal is successful, and the receivership is terminated, how do I get paid?

ANSWER: As a general rule, fees and costs of a receiver and his or her professionals are administrative expenses, chargeable against the assets in the receivership estate. The assets in the estate are liable for those fees and costs even if the underlying litigation is dismissed or judgment is rendered for the defendants. Venza v. Venza, 101 Cal. App. 2d 678, 680 (1951). The receivership court has discretion ...

One of the laws that was passed in California in 2013 that did not receive much media attention was Assembly Bill 1386. AB 1386 amended Labor Code section 98.2 to give the Labor Commissioner additional means to collect wages and penalties on behalf of workers. Existing law had authorized the Labor Commissioner to issue orders, decisions, or awards in connection with employee complaints governed by the Labor Code. As amended by AB 1386, Labor Code section 98.2 now provides that any amount due under a final Labor Commissioner order, decision, or award permits the Labor Commissioner to ...

QUESTION: The court has approved my final account and report, discharged me as receiver and exonerated my bond in a difficult, litigious case I am glad to have over. An elder receiver I know told me I could still be liable for acts or omissions that occurred in the case even though I have been discharged and my bond exonerated. Is this true?

ANSWER: As the saying goes: “Listen to your elders”. There are situations where you may still have liability for actions taken or not taken during your term as receiver; even personal liability. Although there is a dearth of case law on this subject, the ...

QUESTION: I have been appointed receiver in a case involving contentious litigation over a business. The defendant has appealed my order of appointment. The defendant has also repeatedly violated the injunction issued along with my appointing order and has refused to turn over or account for receivership property. Because of the defendant’s conduct, at my request, the court issued an order to show cause why the defendant should not be held in contempt. Given the defendant’s conduct, is there an argument that his appeal should be dismissed because he has refused to comply with the ...