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THE RECEIVER APPOINTED TO CONTROL PROPERTY INVOLVED IN AN OWNERSHIP DISPUTE SHOULD HAVE BEEN SUBSTITUTED AS THE REPRESENTATIVE OWNER IN A SLIP AND FALL CASE (THIRD DEPT). ​

​The Third Department, reversing Supreme Court, determined the receiver, appointed to take control of two properties the ownership of which is in dispute, should have been substituted as the representative owner of the property in a slip and fall case:

Generally, a temporary receiver appointed pursuant to CPLR article 64 “is a person appointed by the court to take control of designated property and see to its care and preservation during litigation” … . Pertinent here, the appointment order authorized the receiver “to immediately take charge and enter possession of the properties,” and empowered the receiver to “act as manager and landlord of the properties.” Correspondingly, the receiver was “authorized and obligated to keep the properties insured against loss by damage of fire . . . and to procure such . . . other insurance as may be reasonably necessary.” Given these directives, we cannot agree with Supreme Court’s assessment that the receiver was accorded only a limited role that did not include property maintenance. To the contrary, the receiver was charged with both the authority and responsibility to assume control over the properties. Pursuant to CPLR 1017, “[i]f a receiver is appointed for a party . . . the court shall order substitution of the proper parties.” That is the situation here. By the court’s directive, responsibility over the management of the properties was passed from the disputing owners to the receiver … . As such, the receiver should have been substituted as the representative owner of the … property … . Wen Mei Lu v Wen Ying Gamba, 2022 NY Slip Op 06037, Second Dept 10-27-22

Practice Point: Here a receiver was appointed to control properties involved in an ownership dispute. The receiver should have been substituted as a representative owner in a slip and fall case.

 

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