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You are here: Home1 / Civil Procedure2 / Criteria for Appointment of Temporary Receiver to Wind Up Dissolution of...
Civil Procedure, Partnership Law

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

 

August 20, 2014
Tags: Second Department
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