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Rule 59-PR Receivership
Rule 59-PR Receivership
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RULE 59
RECEIVERSHIP
Sec. 1. Appointment of receiver.- Upon a verified application, one or more
receivers of the property subject of the action or proceeding may be
appointed by the court where the action is pending, or, By the Court of
Appeals or by the Supreme Court, or a member thereof, in the following
cases:
a.) When it appears from the verified application, and such other proof the
court may require, that the party applying for the appointment of a
receiver has an interest in the property or fund which is the subject of
the action or proceeding, and that such property or fund is in danger of
being lost, removed, or materially injured unless a receiver by appointed
to administer and preserve it;
b.) When it appears in an action by the mortgagee for the foreclosure of a
mortgage that the property in is danger of being wasted or dissipated or
materially injured, and that its value is probably insufficient to discharge
the mortgage debt, or that the parties have so stipulated in the contract
of mortgage;
c.) After judgment, to preserve the property during the pendency of an
appeal, or to dispose of it according to the judgment, or to aid
execution when the writ of execution has been returned unsatisfied or
the judgment obligor refuses to apply his property in satisfaction of the
judgment, or otherwise to carry the judgment into effect;
d.) Whenever in other cases it appears that the appointment of the receiver is
the most convenient and feasible means of preserving, administering, or
disposing of the property in litigation.
During the pendency of an appeal, the appellate court may allow an
application for the appointment of a receiver to be filed in and decided by
court of origin and the receiver appointed to be subject to the control of
said court.
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a)
When it appears from the verified application, and such other proof the court
may require, that the party applying for the appointment of a receiver has an
interest in the property or fund which is the subject of the action or
proceeding, and that such property or fund is in danger of being lost, removed,
or materially injured unless a receiver by appointed to administer and preserve
it;
BAR Q : A filed a case against B to collect unpaid loan. B, the defendant has no other
property left except a piece of land. Meaning of A wins, that land is the only property the
he can levy. And to preserve the property A, the plaintiff filed an application to place the
property under receivership. Is the petition proper?
ANSWER: The SC said NO, because receivership is only proper when the property to be
placed under receivership is the subject of the litigation. In this case, the subject of
litigation is not the property but money. I am collecting a loan which is different from
recovery of possession or ownership of land.
QUESTION: Suppose the defendant is trying to destroy the property or run away with
it or dispose it?
ANSWER: You better get an attachment and not a receivership. That is the tricky part.
b.) When it appears in an action by the mortgagee for the foreclosure of a mortgage
that the property in is danger of being wasted or dissipated or materially
injured, and that its value is probably insufficient to discharge the mortgage
debt, or that the parties have so stipulated in the contract of mortgage;
c.) After judgment, to preserve the property during the pendency of an appeal, or
to dispose of it according to the judgment, or to aid execution when the writ of
execution has been returned unsatisfied or the judgment obligor refuses to
apply his property in satisfaction of the judgment, or otherwise to carry the
Property of
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Generally, you file a Provisional Remedy while the case is going on. Except under par.
c.
Receivership is not only available while the case is pending. It is available even after
judgment to:
1. preserve the property during the pendency of an appeal.
QUESTION: Where will you file you petition for receivership? Before the CA or the trial
court?
ANSWER: The last par. of sec. 1, appellate court may allow the filing of the
receivership in the trial court that decided it although the trial court has already lost
jurisdiction because of the appeal.
QUESTION: Is this supported by Rule 41?
ANSWER: YES. Rule 41, Section 9, last paragraph. Once the appeal is perfected, the
trial court losses jurisdiction over the case except to issue orders for the
preservation and protection of the rights of the parties while on appeal. This is part
of the Residual Powers of the RTC.
2. dispose of it according to the judgment.
3. to aid execution when the writ of execution has been returned
unsatisfied or the judgment obligor refuses to apply his property in
satisfaction of the judgment.
QUESTION: Is this provision or ground supported by the rules on execution? Is there a
provision in the rules of court ?
ANSWER: YES, in remedies in aid of execution. Rule 39 sec. 41. In the execution
stage, you can appoint a receiver to preserve the property which is to be levied.
4. carry the judgment into effect.
d.) Whenever in other cases it appears that the appointment of the receiver is the
most convenient and feasible means of preserving, administering, or disposing
of the property in litigation.
Its the broadest. Anything under the sun can fall on this ground.
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What are the powers of the receiver? Just read the provision. It is like the power of the
manager.
Property of
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If you refuse or neglect to deliver the property to the receiver, you will be liable for
contempt of court.
Property of
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