Legal Definitions - Temporary receivership

Temporary receivership is a legal solution where a court appoints a person to manage a property that is in the possession of the defendant. This remedy is only available when the plaintiff is making an equity claim, and the property is the subject of the claim. The court will grant this remedy only if there is a risk that the defendant will damage or reduce the value of the property while the case is pending.

Suppose a company is facing a lawsuit from its creditors. The creditors claim that the company owes them money and that the company is trying to sell its assets to avoid paying the debt. In this case, the court may appoint a temporary receiver to manage the company's assets until the case is resolved. The receiver will ensure that the assets are not sold or damaged, and the creditors can recover their money if they win the case.

Another example could be a landlord-tenant dispute where the landlord is not maintaining the property, and the tenant is seeking damages. In this case, the court may appoint a temporary receiver to manage the property until the dispute is resolved. The receiver will ensure that the property is maintained, and the tenant can recover damages if they win the case.

These examples illustrate how temporary receivership can protect the interests of the plaintiff and prevent the defendant from causing harm to the property in question.