Q: We are currently under receivership and the receiver is running up extremely high costs for the business.
The receiver was also appointed with a large conflict of interest in the case
A: What happened when your lawyer petitioned the court to remove/ replace the receive showing proof of conflict and impropriety?
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- California
- (916) 704-3009
- View Profile
- Answered
A:
In California, if a receiver appointed to a business is incurring high costs that seem unreasonable, or if there's a conflict of interest, you have options to address these concerns.
First, it's important to review the court order that appointed the receiver to understand the scope of their authority and responsibilities. Receivers are typically required to act in the best interest of the business and its stakeholders.
If you believe the receiver is not fulfilling their duties appropriately or is acting with a conflict of interest, you can file a motion with the court. This motion would request a review of the receiver's actions and costs, and potentially seek their removal or replacement.
Documenting all instances of perceived excessive costs or conflicts of interest is crucial. This evidence will support your case in court.
It's also advisable to communicate your concerns directly to the receiver, seeking clarification and resolution. If this does not yield results, legal action may be necessary.
Consulting with an attorney experienced in receivership and business law can provide you with tailored advice and assistance in navigating this complex situation.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
