Receiverships in New York 2024

9:00 a.m. – 9:15 a.m. Welcome/Introduction and Program Overview 

1. Introduction of Panelists (R. Wolf - 9:00 – 9:05)

A. Panel Members

• Robert A. Wolf, Esq., Tarter Krinsky & Drogin LLP 
• Vincent O. Hanley, Esq., Bond, Schoeneck & King, PLLC
• Meredith R. Jones, Esq., Office of Court Administration, Special Counsel for Surrogate & Fiduciary Matters
• Edward A. Smith, Esq., Abrams Fensterman, LLP
• Rishi Kapoor, Esq., Venable LLP

2. Program Format & Overview (V. Hanley 9:05 – 9:10)

A. Panel Discussion Format

B. Program Overview – Focus on Foreclosure Receivers

a. Part 36 Rules

b. Substantive, Procedural, and Practical Issues

3. Satisfaction of Part 36 Certification Requirement (M. Jones - 9:10 – 9:15) 

9:15 a.m. – 9:45 a.m. Part 36 of the Rules of the Chief Judge (M. Jones - 9:15 – 9:45)

1. Overview of Part 36 Rules & List Enrollment

2. Receiver Appointment Process and Forms

3. Secondary appointments and procedure for appointment

A. Counsel

B. Property manager

C. Other secondary appointees

9:45 a.m. – 10:30 a.m. Receiverships: Substantive Issues

1. Purpose & Statutory Basis for Receivership (V. Hanley - 9:45 – 10:00)

A. Receivership – General Rules

a. Grounds

b. Clear and Convincing Evidence

c. No Less Drastic Alternative Available

B. CPLR Article 64 and other NY Statutory Provisions

2. Receivers in Mortgage Foreclosure Actions (R. Wolf - 10:00 – 10:15 pm)

A. Purposes of Having Receiver Appointed

a. Preserving value of mortgagee’s collateral

b. Preventing owner-mortgage or from “milking” rental income

c. Preventing deterioration of property and waste

B. Ex Parte Appointment

a. NY Real Property Law Section 254(10)

b. Constitutionality

3. Powers and Duties of Receivers (E. Smith/ R. Kapoor -10:15 – 10:30)

A. Nature of Receiver’s Office (Officer of the Court)

B. Authority Limited by Terms of Order

C. Applications to Court for Additional Authority

10:30 a.m. – 10:40 a.m. Break (10 mins)

10:40 a.m. – 11:10 a.m. Receiverships: Procedural Issues

1. Motion for Appointment of Receiver (R. Wolf - 10:40 – 10:50 pm)

A. Motion on Notice or Ex Parte

B. Judge’s Selection of Qualified Receiver

C. Posting of Bond & Qualification of Receiver

2. Order Appointing Receiver & Posting of Bond (R. Kapoor -10:50 – 11:00)

A. Specific Provisions of Order

a. Granting of Possession

b. Authority to Retain Counsel

c. Receiver’s Bond

d. Authority to Collect Rents

e. Authority to Charge Owner-Occupant Rent

f. Requirement for Tenants to Attorn

g. Access to Books & Records

h. Authority to Commence Proceedings

i. Operation of Premises

j. Limited Authorization to Make Repairs

k. Receivers Fees

l. Continuation of Receivership after Final Judgment

3. Accounts and Judicial Settlement of Accounts (V. Hanley - 11:00 – 11:10)

A. CPLR §6404 Requirement for Receivers to Keep Accounts

B. Records Subject to Inspection by Interested Parties

C. Receiver may be held accountable 

D. Motion for Judicial Approval of Receivers Final Accounting

a. Contents of Receiver’s Supporting Affidavit

b. Order Directing Payment of Receiver’s Fees

c. Order Canceling Bond & Discharging Receiver

11:10 a.m. – 12:00 p.m. Receiverships: Practical Issues

1. What to Expect If Appointed Receiver (E. Smith/R. Kapoor - 11:10 – 11:30)

A. Article – What to Expect When a Receiver Takes Over

B. Receiver’s Checklist

C. Anecdotal experiences of E. Smith as Receiver and R. Kapoor as foreclosing plaintiff’s counsel with regard to various receivership issues that they’ve had to deal with

2. Commissions (M. Jones 11:30 – 11:35)

3. Disbursements and Depletion of Funds (V. Hanley - 11:35 – 11:40)

A. CPLR Section 8004(b)

B. Liability for Shortfall

C. Practical Considerations

4. Liability & Insurance (E. Smith/R. Kapoor - 11:40 – 11:45)

A. General Rule

a. Receiver acting in Good Faith Immune from Suit

b. Personal Liability for Acts or omissions of Receiver Outside the Scope of Order 

c. Receiver May not be Sued without Permission of Court

B. Insurance 

a. Property Insurance

b. Liability Insurance

4. Accounts and FDIC coverage (M. Jones - 11:45 – 11:50)

A. Specific Accounting Requirements of Part 202.52 Uniform Civil Rules for Supreme & County Courts (22 NYCRR space 202.52)

a. Depository to be designated by Court

b. Withdrawals to be made only upon Court Order

c. Receivers to file regular accountings with Court

d. County Clerk Certificate regarding status of Bond

5. Impact of Bankruptcy (R. Wolf - 11:50 – 11:55)

A. Section 543 of Bankruptcy Code renders Receiver a Custodian

B. Absent court Order, otherwise, must turn over account funds to Bankruptcy Trustee or Debtor in Possession

C. Receiver’s compensation may be determined by Bankruptcy Court

3.0 MCLE Credits in Areas of Professional Practice

11:55 a.m. – 12:00 p.m. Q&A

12:00 p.m. Adjourn