How Does A Court Appointed Receiver Get Paid?
The basis of the Receiver's fees
The basis for A Court Appointed Receiver's fees can be found in the Civil Procedure Rules (April 2010) at Part 69, and it states the following:
69.7 Receiver's Remuneration
1. A receiver may only charge for his services if the court -
a. so directs: and
b. specifies the basis on which the receiver is to be remunerated.
2. The Court may specify -
a. who is to be responsible for paying the receiver; and
b. the fund or property from which the receiver id to revoer his remuneration.
3. If the court directs that the amount of a receiver's remuneration is to be determined by the court -
a. the receiver may not recover any remuneration for his services without a determination by the court; and
b. the receiver or any party may apply at any time for such a determination to take place.
4. Unless the court orders otherwise, in determining the remuneration of a receiver the court shall award such a sum as is reasonable and proportionate in all the circumstances and which takes into account -
a. the time properly given by him and his staff to the receivership;
b. the complexity of the receivership;
c. any responsibility of an exceptional kind or degree which falls on the receiver in concequence of the receivership;
d. the effectiveness with which the receiver appears to be carrying out, or to have carried out, his duties; and
e. the value and nature of the subject matter of the receivership.
5. The court may refer the determination of a receiver's remuneration to a costs judge.
The synopsis of this snapshot from the Civil Procedure Rules is that a Court Appointed Receiver must apply to court to be paid as explined at point 1 above.
This happens by either the court directing that the Receiver should be paid or specifying how the Receiver should be paid. For example the Court could order that the Receiver should be able to draw fees from realisation of assets. As exampled at point 2 above.
If you have any further questions about the fees of a Court Appointed Receiver please contact Chris Parkman for more advice.