RULE 59: RECEIVERSHIP
WHO IS A RECIEVER?
- A person appointed by the court in behalf of all
the parties in the action
- For the purpose of preserving and conserving the
property in litigation
- And prevent destruction or dissipation
- If it were left in the hands of the parties
WHO MAY BE APPOINTED AS RECEIVER?
GR: (none party to the litigation unless the parties
consented) The receiver should be indifferent, impartial,
disinterested
- The judge may appoint the sheriff/other proper
officer or persons
- If the bonded officer is appointed, he and his
sureties shall be liable on his official bond
- If another person? He shall give a bond as
receiver as in other cases
WHEN MAY A RECEIVER BE APPOINTED?
A. Real Property
- When it appears from the pleadings or such
other proof as the judge may require, that the
party applying for appointment has:
1. An actual interest in it
2. Such property is –
a. In danger of being lost, removed or
materially injured or
b. Whenever it appears to be the most
convenient and feasible means of
preserving or administering the
property in litigation
Note: appointment of receiver is not a matter of absolute
right
Remember the guiding principle: Prevention of
imminent danger to the property
APPOINTMENT OF RECEIVER DURING THE PENDENCY OF
APPEAL
- It must be noted that after the perfection of the
appeal the trial court loses jurisdiction over the
case
- But the court retains jurisdiction re the
preservation of the subject property and
involved in the appeal
- Thus, the TRIAL COURT may appoint a receiver
even during the pendency of the appeal
1. After final judgment a receiver may
be appointed as an aid to the
execution of judgment.
2. Appointment of a receiver over the
property in custodial egis may be
allowed when it is justified by special
circumstances as when it reasonably
necessary to secure and protect the
right of the real owner
RECEIVER IS NOT ALLOWED TO TAKE AWAY POSSESSION
OF PROPERTY
- It is not his duty to deprive a party who is in
possession of the property in litigation
RECEIVERSHIP IN PARTITION PROCEEDINGS
GR: unnecessary to appoint a receiver
EXPN:
- Relations among the co-owners are strained
- And no satisfactory arrangement of
administration can be accomplished
Note: when there is an abuse of discretion in appointing
a receiver, the CA may interfere
Note: a property under receivership does not include
that portion owned by other partners not
included/affected.
NECESSITY OF IMMINENT DANGER TO PROPERTY
- Receivership is not proper where the rights of
the parties are still to be determined by the court
of who is in possession of the property
Example of imminent danger-
- Prospective foreclosure of a mortgage for non-
payment of the loan despite the considerable
income derived from the property
Note: Appointment of receiver must be exercise with
extreme Caution

Things that need to be considered-

(a) Whether or not the injury resulting from such

appointment would probably be greater than
the injury ensuing if the status quo is left
undisturbed
(b) WON the appointment will imperil the interest
of others whose rights deserve as much a
consideration from the court as those person
requesting for receivership

Note: Clerk of court should not be appointed as receiver

BOND COUNTER-BOND
Answers for damages Conditioned upon the
that the adverse party payment of all damages
may suffer by reason of which the applicant may
the appointment of a suffer by reason of the
receiver acts or other matters in
the application for
receivership