CHAPTER 920*

RECEIVERS

*Cited. 206 C. 421.

Table of Contents

Sec. 52-504. Application for receiver; orders of judge.

Sec. 52-505. Receivers for certain associations, communities or corporations.

Sec. 52-506. Receiver to give bond.

Sec. 52-507. Authority of receiver of corporation.

Sec. 52-508. Receiver to file semiannual statements.

Sec. 52-509. Appointment of receiver of partnership.

Sec. 52-510. Power of court over partnership property.

Sec. 52-511. Receiver entitled to control of partnership property.

Sec. 52-512. Preference in receivership proceedings to claims for wages and deposits for consumer goods and services.

Sec. 52-513. Court may remove receiver at pleasure and fill vacancy.

Sec. 52-514. Receivership; dissolution of attachment and levy of execution; costs.


Sec. 52-504. Application for receiver; orders of judge. When any action is brought to or pending in the superior court in which an application is made for the appointment of a receiver, any judge of the superior court, when such court is not in session, after due notice given, may make such order in the action as the exigencies of the case may require, and may, from time to time, rescind and modify any such order. The judge shall cause his proceedings to be certified to the court in which the action may be pending, at its next session.

(1949 Rev., S. 8240; P.A. 82-160, S. 194.)

History: P.A. 82-160 rephrased the section.

Appointment is merely auxiliary to equitable relief; creditor may act. 73 C. 587. Judgment appointing is not final judgment. 74 C. 652. Some equity must appear, but final merits of case not to be determined before temporary appointment; appointment in chambers. 76 C. 252. Appointment to hold property pending an appeal affecting its disposition. 81 C. 116. Appointment to receive rents pending action to quiet title. 85 C. 434. In determining jurisdiction, ancillary and permanent appointments stand on same ground. 91 C. 92. National bank may be receiver when. 94 C. 648. Appointment of receiver operates as a breach of an executory contract unless receiver adopts and carries out contract. 98 C. 414. When foreign receiver may sue in Connecticut as matter of right, and when as matter of comity. 104 C. 670. See notes to sections 33-383, 36-35. Receiver is officer of court. 109 C. 335. Cited. 195 C. 218.

Cited. 1 CA 397. Cited. 16 CA 420.

Sec. 52-505. Receivers for certain associations, communities or corporations. (a) If in any town, any association, community or corporation organized in whole or in part for the support of its members, has property upon which its members, in whole or in part, are dependent for support, and, in the opinion of the selectmen of the town, there is danger that the property will be lost or expended in any manner so that some of the members may become an expense to the town, the selectmen may bring an application, in the name of the town, to the superior court for the judicial district in which the town is situated, for the appointment of a receiver of the property of the association, community or corporation and for other equitable relief.

(b) The court shall have power, if it deems necessary and proper, to appoint a receiver of all the property of the association, community or corporation, and vest all the property in the receiver, by decree or otherwise, to provide that the property shall be managed and used for the benefit and support of the members, in such manner as the court finds to be best for the protection of the town and the members, and to grant such other relief as is necessary for that purpose and to protect the interests of the town and the members, according to the practice and proceedings of courts of equity.

(c) No application may be brought under this section by the selectmen until the matter has been submitted to the town at a special meeting called for that purpose and until the town has approved of the application by vote at the meeting.

(1949 Rev., S. 8241; P.A. 78-280, S. 2, 127; P.A. 82-160, S. 195.)

History: P.A. 78-280 substituted “judicial district” for “county”; P.A. 82-160 rephrased the section and inserted Subsec. indicators.

Joint bond of two receivers construed. 79 C. 470.

Sec. 52-506. Receiver to give bond. All receivers, before assuming to act as such, shall file with the clerk of the court by which, or by a judge of which, they were appointed, a bond with such surety or sureties, and for such an amount as such court or judge may order and approve, payable to the state and conditioned for the faithful performance of their official duties.

(1949 Rev., S. 8242.)

Does not apply to trustees winding up corporation. 96 C. 83.

Sec. 52-507. Authority of receiver of corporation. (a) Receivers of a corporation, appointed by judicial authority, shall have the following rights and powers: (1) The right to the possession of all the corporation’s books, papers and property; (2) the power in their own names, or in the corporation’s name, to commence and prosecute civil actions for and on behalf of the corporation; (3) the right to defend all actions brought against the corporation or them; (4) the right to demand and receive all evidences of debt and property belonging to the corporation, and to do and execute in the corporation’s name, or in their names as receivers, all other acts and things necessary or proper in the execution of their trust; and (5) all the powers for any of the above-mentioned purposes possessed by the corporation.

(b) The receivers of a corporation shall, under the order of the court, have the same power as the directors of the corporation to call in the subscriptions to its capital stock, in such proportions and at such times and places as they think necessary for the purpose of paying all the debts of the corporation and all the expenses of the receivership.

(1949 Rev., S. 8243; P.A. 82-160, S. 196.)

History: P.A. 82-160 rephrased the section and inserted Subsec. indicators.

See Sec. 33-898 re court appointment of receiver or custodian for corporation.

Fraud of corporation may be a defense to a suit by its receivers. 29 C. 385. A judgment for the corporation bars a suit by the receivers for the same cause of action. 28 C. 441. Receiver may sue in trover for a conversion which occurred prior to his appointment. 44 C. 562. Statute does not undertake to change the title of property or to vest it in the receiver. Id., 562. Receiver may allow mortgagor of satisfied mortgage to use the corporation’s name in an action of ejectment. 47 C. 211. After appointment, property cannot be attached, encumbered or repossessed by conditional vendor or chattel mortgagee to receiver’s disadvantage. 106 C. 165. Powers of, in general; for most purposes receiver represents and stands in place of the corporation. 52 C. 361; but see 70 C. 220; Id., 321; 74 C. 359; Id., 370; 76 C. 377; 87 C. 369; 88 C. 194; 89 C. 645; 104 C. 563. Statute does not recognize the capacity of the corporation to sue and be sued after decree of annulment. 56 C. 477. Receiver may appeal from an order claimed to be void, which affects the rights of owners and creditors represented by him. 69 C. 715. Cited. 52 C. 108. Cited. 66 C. 283. Should not be permitted to employ counsel for defendant corporation in action in which he may be plaintiff. 74 C. 652. Where receiver changed, corresponding change should be made in action in which he is party. 73 C. 383. In action by, to enforce stockholder’s liability, has broader right than corporation would have. 75 C. 441; 104 C. 683; 107 C. 220. Necessity of securing permission of court to bring action against. 66 C. 277; 68 C. 543; 82 C. 363. Receiver may bring action to free estate from fraudulent liens. 74 C. 367. Duties as to contracts of insolvent. 72 C. 62; 76 C. 38. Property vests on appointment. 66 C. 350; 87 C. 369; 106 C. 165. Taxation of property in hands of receiver. 72 C. 63; 82 C. 406. Effect of bankruptcy succeeding receivership within four months. 84 C. 712. Statute of limitations in action by, against directors for negligence. 89 C. 451. Court may order receiver to assist in collecting on collateral deposited with trustee to secure debentures. Id., 645. Receiver may file mechanic’s lien. 90 C. 8. Court may authorize employment of broker to sell property. 91 C. 191. Right to reimbursement for expenditures. 93 C. 143. judgment concludes him, and, if he is authorized, establishes a claim. Id., 166. Permission to sue receiver necessary; 93 C. 178; effect of his entering to defend without authority of court. Id., 186. Receivers are in effect the corporation which they represent. 94 C. 113. Where receiver litigates in the name of the corporation, As to priority of current creditor’s claims to operating income over claims of mortgagees under corporate mortgage securing bond issue, see 101 C. 13; 108 C. 217. Contract of corporation to buy back its stock if unsuccessful is ultra vires; creates an unenforceable preference. 101 C. 539. Ancillary receiver may distribute assets but ordinarily they will be turned over to principal receiver for distribution. 104 C. 218. Priority between conditional vendor and receiver of conditional vendee. Id., 567. Receiver not a “personal representative”. Id.

Sec. 52-508. Receiver to file semiannual statements. Each such receiver shall, during the first week in April and in October in each year, sign, swear to and file with the clerk of the court by which he was appointed a full and detailed account of his actions as receiver for the preceding six months, together with a statement of all orders of court passed during the six months and the present condition and prospects of the property in his charge. Upon filing of the account, the receiver shall cause a motion for a hearing and approval of the account to be placed on the short calendar.

(1949 Rev., S. 8244; P.A. 82-160, S. 197.)

History: P.A. 82-160 replaced “estate” with “property” and rephrased the section.

Damage for violation is set by statute. 7 CS 521.

Sec. 52-509. Appointment of receiver of partnership. (a) When any partnership is dissolved and the partners cannot agree upon the disposition of the partnership property and the settlement of the affairs of the partnership, any of them may apply to the superior court for the judicial district in which any of the partners resides, or in which the property of the partnership is situated, and, if the court is not in session, then to any judge of the Superior Court, for the appointment of a receiver to hold the business and all of the property, both real and personal, belonging to the partnership, and dispose of, manage and apply the property as the court or the judge may direct.

(b) Upon receiving an application, the court or judge shall immediately appoint a day for the hearing upon the application, and shall make such order relative to notice of the application and of the hearing to the other partners as may be deemed proper, provided the hearing shall be at least six days from the service of the order of notice. The court or judge upon such hearing may appoint a receiver for the partnership, who shall be subject to the orders of the court.

(1949 Rev., S. 8245; P.A. 82-160, S. 198.)

History: P.A. 82-160 rephrased the section and inserted Subsec. indicators.

Court may hear the application forthwith, if the adverse parties consent. 41 C. 305; 66 C. 357. Statute of lis pendens not applicable to action for appointment. Id., 350. Right of equity to wind up partnership. 73 C. 606. Equity has full jurisdiction of a suit for an accounting and settlement of partnership affairs. 147 C. 160. What must be contained in a final account. Id. See note to section 52-507.

Cited. 15 CS 433.

Sec. 52-510. Power of court over partnership property. The Superior Court, and when court is not in session any judge thereof, may make such orders relative to the management or closing up of the business of such partnership, and to the sale, division or other disposal of its real and personal property, as may be necessary to protect the rights and interests of each partner and of the creditors of such partnership.

(1949 Rev., S. 8246; 1967, P.A. 656, S. 52; P.A. 82-160, S. 199.)

History: 1967 act substituted “when said court is not sitting” for “in vacation”; P.A. 82-160 rephrased the section.

Sec. 52-511. Receiver entitled to control of partnership property. Upon the appointment of a receiver for a partnership, he shall be entitled to the immediate possession and control of all its property, both real and personal, subject to the order of the Superior Court; but any such appointment, or any order of the court, may be modified or vacated on the application to the court of any party to the proceedings, reasonable notice of the application and of the time and place of the hearing thereon having first been given to every other party.

(1949 Rev., S. 8247; P.A. 82-160, S. 200.)

History: P.A. 82-160 made minor changes in wording.

That statute “vests” the partnership property in the receiver on his appointment does not alter the nature of the application. 66 C. 359; 87 C. 369.

Sec. 52-512. Preference in receivership proceedings to claims for wages and deposits for consumer goods and services. (a) Every debt due to any laborer or mechanic for personal wages, from any corporation or partnership for which a receiver is appointed, for any labor performed for such corporation or partnership within three months next preceding the service of the application for the appointment of a receiver, shall be paid in full by the receiver, to the amount allowed for certain wages pursuant to subdivision (4) of subsection (a) of 11 USC Section 507, as amended and adjusted from time to time pursuant to 11 USC Section 104, as amended from time to time, before the general liabilities of such corporation or partnership are paid.

(b) Every debt due to any individual from a corporation or partnership for which a receiver is appointed for a deposit made in connection with the purchase, lease or rental of goods or the purchase of services for the personal, family or household use of such individual, where such goods were not received or such services were not provided prior to the service of the application for the appointment of a receiver, shall be paid in full by the receiver, to the amount allowed for certain consumer deposits pursuant to subdivision (7) of subsection (a) of 11 USC Section 507, as amended and adjusted from time to time pursuant to 11 USC Section 104, as amended from time to time, before the general liabilities, except taxes or wages, of the corporation or partnership are paid. As used in this subsection, “deposit made in connection with the purchase, lease or rental of goods” includes, but is not limited to, deposits made by a consumer to a home heating oil or propane gas dealer pursuant to a prepaid home heating oil or propane gas contract or capped price per gallon home heating oil contract.

(1949 Rev., S. 8248; 1957, P.A. 591, S. 3; P.A. 93-314, S. 2; June 11 Sp. Sess. P.A. 08-2, S. 5.)

History: P.A. 93-314 added Subsec. (b) to give a preference to the claim of an individual for a deposit made in connection with the purchase, lease or rental of goods or the purchase of services for the personal, family or household use of such individual; June 11 Sp. Sess. P.A. 08-2 deleted $600 amount for wages and inserted 11 USC 507(a)(4) and 104 references in Subsec. (a) and deleted $900 consumer deposit amount, inserted 11 USC 507(a)(7) and 104 references and added definition of “deposit made in connection with the purchase, lease or rental of goods” in Subsec. (b), effective June 17, 2008.

See Sec. 52-400f re preference to claims for deposits for consumer goods and services in nonreceivership situations.

Trial court did not abuse its discretion in refusing to grant defendant’s motion to open judgment of dissolution. Defendant’s failure to appear was due to his own negligence and not any mistake, accident or other reasonable cause. He was served with notice of the action and did nothing. The trial court did not have to decide whether the defendant had a good defense. 105 CA 648.

Wages are given a preference over taxes. 4 CS 45. Laborer does not include bookkeeper. Id., 253.

Sec. 52-513. Court may remove receiver at pleasure and fill vacancy. Receivers may be removed at any time, at the pleasure of the court by which they were appointed or, if such court is not in session, by a judge thereof; and, if any receiver is removed or declines to act or dies, the court that appointed him, or, if such court is not in session, a judge thereof, may fill the vacancy.

(1949 Rev., S. 8249.)

Due notice should be given prior to removal; procedure; receiver cannot appeal from removal. 70 C. 473. Includes appointment in chambers of new temporary receiver where one originally appointed has died. 76 C. 257. Cited. 196 C. 172.

Sec. 52-514. Receivership; dissolution of attachment and levy of execution; costs. (a) The commencement of proceedings for the appointment of a receiver of a corporation or a partnership shall dissolve all attachments and all levies of executions not completed, made within the preceding sixty days, on the property of the corporation or partnership.

(b) If the property is subsequently taken from the receiver so that it cannot be made subject to the orders of the court in the settlement of the affairs of the corporation or partnership or if the receivership is terminated by order of the court pending the settlement of the affairs of the corporation or partnership, the attachments and levies of execution shall revive. The time from the commencement of the proceedings to the time when the receiver is dispossessed of the property, or to the time when the court finds that the property is not subject to the orders of the court, or to the time when the trust is terminated, shall be excluded from the computation in determining the continuance of the lien created by the attachment.

(c) Attaching or levying creditors shall be allowed the amount of their legal costs, accruing before the time of the appointment of a receiver, as a preferred claim against the property of the corporation or partnership, if their respective claims upon which the attachments are founded are allowed, in whole or in part.

(1949 Rev., S. 8250; P.A. 82-160, S. 201.)

History: P.A. 82-160 rephrased the section and inserted Subsec. indicators.

Creditor’s rights to attach or levy are suspended by the appointment. 66 C. 359; 70 C. 232; 106 C. 165. Statute has no application to legal proceedings in other states. 71 C. 353. Statute applies to suits commenced in the federal as well as in the state courts. 73 C. 154, 155. Action may, however, be pursued. 85 C. 278.