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Criteria for Appointment of Temporary Receiver to Wind Up Dissolution of Partnership Not Met

The Second Department determined Supreme Court should not have appointed a receiver to wind up the dissolution of a partnership because the criteria for the appointment (irreparable loss or waste of property) had not been met:

The Supreme Court improvidently exercised its discretion in granting that branch of the plaintiffs’ motion which was pursuant to CPLR 6401 for the appointment of a temporary receiver to wind up the affairs of a partnership … and to liquidate and distribute its assets. “A party moving for the appointment of a temporary receiver must submit clear and convincing evidence of irreparable loss or waste to the subject property and that a temporary receiver is needed to protect their interests'” (…see CPLR 6401[a]…). Here, the plaintiffs failed to make a “clear evidentiary showing that property of the [partnership] was in danger of being removed from the state, or lost, materially injured or destroyed'” … . Accordingly, that branch of the plaintiffs’ motion which was for the appointment of a temporary receiver should have been denied. Magee v Magee, 2014 NY Slip Op 05845, 2nd Dept 8-20-14

 

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