Ohio Updates Receivership Statute
Earlier this year, changes to Ohio’s statute governing court-appointed receivers became effective. The Ohio legislature passed, and Gov. John Kasich signed, legislation updating and clarifying various aspects of the law, including the qualifications of a receiver, the authority of a receiver, and the procedure for the sale of property.
In general, a receiver acts on behalf of the court to protect endangered property or assets, often while an underlying legal action such as a foreclosure is pending. Under the statute, a receiver may be appointed by the court to do such things as collect rents, take possession of property, or enter into contracts. The statute permits a receiver to be appointed in several specific circumstances, such as when a corporation has been dissolved, to carry a judgment into effect, or in some foreclosure actions.
It is important to note, however, that even if a court may appoint a receiver it is not required to do so. The court must use its discretion to determine if such an appointment is necessary to protect a party’s rights, in particular to prevent a party from suffering irreparable harm.
A detailed analysis of these important statutory changes affecting property and business owners is available from Porter Wright.