RECEIVERSHIP

John Robert Sam P. Juan

Argel Cosme
RULE 59

GROUNDS FOR ISSUANCE

Grounds For Issuance

Party applying for appointment of receiver has an
interest in the property or fund which is subject of the
action or proceeding ; and
Such property or fund is in a danger of being lost,
removed or materially injured unless a receiver be
appointed to administer and preserve it.
In action by mortgagee for the foreclosure of the
mortgage, property is in danger of being wasted or
dissipated or materially injured and that its value is
probably insufficient to discharge the mortgage debt
or that parties have so stipulated in contract of
mortgage.

 After judgment, to preserve the property during the

pendency of an appeal, or to dispose of it according to
the judgment , or to aid execution when the execution
was returned unsatisfied or the judgment obligor
refuses to apply his property in satisfaction of the
judgment, or otherwise to carry judgment into the
effect;
In other cases, where it appears that appointment of
receiver is most convenient and feasible means of
preserving, administering or disposing the property in
litigation.

 DURING PENDENCY OF AN APPEAL, APPELLATE COURT

MAY ALLOW APPLICATION FOR APPOINTMENT OF
RECEIVER TO BE FILED IN AND DECIDED BY COURT OF
ORIGIN AND THE RECEIVER APPOINTED TO BE SUBJECT
TO CONTROL OF SAID COURT.
Receivership may be a principal or ancillary remedy.
While perfection of an appeal deprives the trial court of
jurisdiction over the case, the trial court can appoint
the receiver since this does not involve any matter
litigated by appeal. ( Sec. 9 Rule 41)
Receiver may be availed of EVEN AFTER FINAL
JUDGMENT
Appointment of receiver during pendency of action is
INTERLOCUTORY in nature and cannot be compelled
by mandamus, but certiorari will lie if there was grave

RECEIVER
Person appointed by court in behalf of the parties to an
action solely for the purpose of preserving the property
involved in litigation as well as to protect the rights of
the parties under the discretion of the court.
Receiver should exercise ordinary diligence(diligence of
a good father)
Sworn in to perform duties (sec. 4 Rule 59)
Generally a party, cannot be appointed a receiver
without other parties consent.
Bond to be determined by appointing court, executed
to the party against whom application is presented.

 CONDITION OF RECEIVERS BOND

CONDITION OF RECEIVERS BOND

(SEC. 2 RULE 59)
Before issuance of order appointing a receiver,
Court shall require applicant to file a bond
executed in amount fixed by court.
Applicant will pay such party all damages he
may sustain by reason of appointment of such
receiver in case applicant procured such
appointment without sufficient cause.
Court may require additional bond as further
security for such damages at any time after the
appointment.

DENIAL OF APPLICATION OR DISCHARGE OF

RECEIVER
Sec.3 Rule 57

Receivership may be lifted or denied if:

When adverse party files a bond executed to the
applicant, in an amount fixed by court, to effect that
such party will pay applicant all damages he may suffer
by reason of acts, omissions, or other matters specified
in application as ground for such appointment.
The receiver may also be discharged if it is shown that
his appointment was obtained without sufficient cause.

Service of copies of bonds; effect of disapproval

Sec. 5
Person filing the bond shall serve a copy on each interested
party who may except to its sufficiency or of surety or
sureties thereon.
If either applicant or receivers bond is insufficient in amount,
or if sureties failed to justify a bond and failed to filed after.
APPLICATION SHALL BE DENIED OR RECEIVER BE
DISCHARGED.
If bond of adverse party is found insufficient in amount or
sureties failed to justify , and a bond sufficient in amount with
sufficient sureties approved after justification is not filed, then
receiver shall be appointed or re-appointed, as case may be.

General Powers of receiver

General Powers of receiver Sec. 6

Power to bring and defend, in such capacity, actions in
his own name
To take and keep possession of property in controversy
To receive rents
To collects debts due to himself as receiver or to the
fund, property, estate, person, or corporation of which
he is a receiver
To make transfers
To pay outstanding debts
To divide money, property that shall remain among

FUNDS in Hands of receiver may be invested only by

order of court upon written consent of all parties to the
action.

***No action may be filed by or against a receiver without

leave of court which appointed him

Liability for refusal or neglect to deliver

property
Refusal or neglect upon reasonable demand, to deliver
property, money, books, deeds, notes, bills , documents
and papers within his power or control may be punished
for CONTEMPT and be LIABLE TO RECEIVER FOR
MONEY OR VALUE OF PROPERTY SO REFUSED OR
NEGLECTED TO BE with DAMAGES that may have
been sustained by party or parties entitled.

TermiNation Sec.8
Court, motu proprio or on motion of either party, shall
determine that the necessity for a receiver no longer exists, it shall
after due notice to all interested parties and hearing, settle the
accounts of the receiver, direct the delivery of the funds and other
property in his possession to person adjudged to be entitles to
receive them and order discharge of the receiver for further duty.
Court shall allow receiver such reasonable compensation as
circumstance of the case warrant, to be taxed as costs against the
defeated party, or apportioned , as justice requires.

Judgment to include recovery against

sureties
The amount if any to be awarded to any party upon any
bond filed shall be claimed, ascertained and granted
under the same procedure. (Sec. 20 of Rule 57)

ALCANTARA v. ABBAS

GEN RULE: Neither

party should be
appointed as a receiver,
as receiver should be
impartial, indifferent,
disinterested. Receiver

DOLAR v. SUNDIAM

ordinarily, no receiver can

be appointed over a
property which is under
custodia legis respondent
court has no jurisdiction to
grant receivership over the
said parcels of land in
dispute

CENTRAL SAWMILL v. ALTO SURETY & INSURANCE CO

ET. AL
CENTRAL SAWMILL v. ALTO
SURETY- In action for collection of
debt, when there is already a final
judgment. Court has authority to
appoint a receiver over the
properties of the judgment debtor
and which are not subject of
controversy.

VENTOSA v. FERNAN

- Receiver allowed to
take
over
premises,
because there was no
evidence adduced that
petitioner
is
in

Pacific Co v. Surety Co

The receiver must secure authority

from appointing court before he
enters into a contract. Otherwise he
shall be held personally liable.