RULE 59

Question 1

When or why do you avail the provisional remedy of receivership?

Answer 1

To protect and preserve the rights of the parties during the pendency of the main action. Receivership is aimed at the preservation of, and at making more secure, existing right; it cannot be used as an instrument for the desctruction of those rights

Question 2

Can a party be appointed to be receiver?

Answer 2

Yes, when with consent of the parties

Question 3

What does the court consider before appointing a receiver?

Answer 3

Section 1. Appointment of a receiver
Upon a verified application, one or more receivers of the subject of the action or proceeding may be appointed by the court where the action is pending, or by the CA or by the SC or a member thereof, in the following cases:

1. when it appears from the verified application and such other proof as the court may require, that the party applying for the appointment of a receiver has an interest in the property or funds which is the subject of the action or proceeding, and that such property or fund is in danger of being lost, removed or materially injured unless a receiver be appointed to administer and preserve it.
2. when it appears in an action of the mortgagee for the foreclosure of a mortgage that the property is in danger of being wasted and dissipated or materially injured, and that its value is probably insufficient to discharge the mortgage debt, or that the parties have so stipulated in the contract of mortgage.
3. after judgment, to preserve the property during the pendency of the appeal, to dispose the property according to the judgment, aid in the execution when the execution has been returned unsatisfied or the judgment obligor refuses to apply his property in satisfaction of the judgment or otherwise to carry out the judgment into effect
4. whenever in other cases, it appears that the appointment of a receiver is the most convenient and feasible means of preserving, administering, disposing of the property im litigation

Question 4

apart from affidavit, what else is required for the court to grant receivership?

Answer 4

BOND

Question 5

Will the receiver be acting on behalf of the party?

Answer 5

NO, on behalf of the interest of all.

He is an officer of the court exercising his functions in the interest of neither plaintiff nor defendant, but for the common benefit of all parties in interest. He performs his duties dubject to the control of the court

Question 6

can the bond be excused?

Answer 6

NO, Bond is mandatory

Question 7

What is required of the receiver before commencing his duties?

Answer 7

Before entering upon his duties, the receiver shall sworn to perform them faithfully and shall file a bond, executed to such person in such sum as the court may direct, to the effect that he will faithfully discharge his duties in the action or proceeding and obey the orders of the court

Question 8

How much is the bond?

Answer 8

sum fixed by the court