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ARIZONA’S NEW RECEIVERSHIP STATUTE: REVIEWED, INTERPRETED AND APPLIED©, PART XI

September 11, 2020

Owner’s Duties.

The Act imposes certain obligations on owners and on officers and other persons in control of an owner that is an entity to co-operate with and not to interfere with the receiver.   A.R.S. §33-2612(A) & (B).   A court may (1) award actual damages, attorneys’ fees and costs in favor of a receiver against any person who “knowingly” fails to perform a duty imposed by this section; and (2) impose penalties for civil contempt against any such person.   A.R.S. §33-2612(C).   The comments to UCRERA make clear that courts are not limited to the remedies set forth in this provision.

In appropriate circumstances, a court may use other equitable remedies, such as the imposition of an injunction or a constructive trust, to address an owner’s failure to comply with its duties under the Act. If the receiver seeks and obtains a recovery under subsection (c), that recovery is receivership property and not the proceeds of the receiver’s personal cause of action.

UCRERA, §13, at p. 43.

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