Tag «Receiver»

Tolling Statute of Limitations for Claims of Entities in Receivership or Bankruptcy Previously Controlled by Wrongdoer

Adverse Domination Doctrine Under the adverse domination doctrine, the statute of limitations for bringing an action against the corporate wrongdoers is tolled when those wrongdoers continue to control or dominate the corporation and prevent it from discovering the malfeasance and taking remedial action against the malefactors. See Favila v. Katten Muchin Rosenman LLP, 188 Cal. …

A Receiver Has Standing to Pursue Fraudulent Transfer Claims on Behalf of Receivership Entity

As set forth in Scholes v. Lehmann and adopted by courts across the country, a Receiver has standing to pursue fraudulent transfer claims because the receivership entity in whose shoes the Receiver stands is deemed to be creditor of the Ponzi scheme or other fraudulent enterprise that was placed in receivership.  That seminal case and its ever-growing progeny …

Receivership Estate, as Legal Identity Separate and Distinct From Receivership Entity, is Creditor of Receivership Entity for Purposes of Fraudulent Transfer Claims

Most court have adopted the traditional view that a receiver stands in the shoes of the entity that has been placed in receivership such that it can only assert those claims that the entity could have asserted.  See Scholes v. Lehmann, 56 F.3d 750 (7th Cir. 1995); Eberhard v. Marcu, 530 F.3d 122 (2d Cir. …

Stay Relief Is Seldom Granted in Receivership Cases

The Ninth Circuit Court of Appeals, in SEC v. Wencke, 742 F.2d 1230 (9th Cir. 1984), set forth the three factors commonly applied by federal courts in determining whether to lift the stay in a receivership case: (1) whether refusing to lift the stay genuinely preserves the status quo or whether the moving party will …

A Receivership Court Has Exclusive Jurisdiction Over the Receivership Property but Not Necessarily the Receivership Defendant

A court that appoints a receiver over property of a defendant typically has exclusive jurisdiction over such property and imposes a stay against commencing any litigation that would affect it.  A plaintiff that seeks to file suit to recover, impair, or affect property of a receivership estate or otherwise in the hand of the receiver …

Receivers’ Fraudulent Transfer Claims Are Not Barred by In Pari Delicto Doctrine: A Survey of Federal and State Court Decisions

A growing list of federal and state courts have determined that fraudulent transfer claims brought by an equity receiver are not barred by the doctrine of in pari delicto. While the following list includes many of the significant and most frequently-cited decisions setting forth or upholding this proposition of law, it is by no means …