August 25, 2020

Power of the Court.

Section 33-2604 provides that a court appointing a receiver “has exclusive jurisdiction to direct the receiver and determine any controversy related to the receivership or receivership property.”  Vesting one court with the sole authority to handle all matters relating to the proceeding and property owned by the receivership estate arising or located in Arizona certainly makes sense from judicial efficiency perspective, ensuring the elimination of potentially conflicting rulings and minimizing the time and expense of the parties.  However, it is clear that an Arizona Court cannot exercise jurisdiction over properties located in other states or persons and events having no or limited nexus to Arizona.   A plaintiff or receiver in an Arizona proceeding is not without a remedy, however. 

He or they will need to initiate a receivership action in the other state in which that property or those persons are present or those events transpired.  If that other state has adopted the UCRERA, they would be able to initiate an “ancillary proceeding” in that other state.   See 33-2611(A)(8) & UCRERA, §24.

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