ARIZONA’S NEW RECEIVERSHIP STATUTE: REVIEWED, INTERPRETED AND APPLIED©, PART XI
September 11, 2020
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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