ARIZONA’S NEW RECEIVERSHIP STATUTE: REVIEWED, INTERPRETED AND APPLIED©, PART XXI
October 16, 2020
Removal & Termination.
A court may only remove a receiver “for cause.” A.R.S. §33-2620(A). “Cause” is not defined in the Act. The comment to UCRERA §22 is not particularly helpful in understanding the circumstances that may constitute “cause”. Citing to Clark on Receivers the Commissioners state that “[c]ertainly, ‘cause’ would include the receiver’s refusal or failure to carry out its duties.” UCRERA at p. 70.
The Act authorizes a court to terminate the receivership if it finds that the appointment was improvidently granted or the circumstances do not justify continuing the receivership. In the event the court does so, it may award the fees and expenses of the receivership and actual damages caused by the receivership against a person the court determines sought the appointment wrongfully or in bad faith. A.R.S. §33-2620(D).
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