Short answer. Subject to court control, a receiver can sue and be sued in that capacity, keep possession of the property, collect rents and debts, compromise claims, make transfers, pay debts, and divide remaining funds among those entitled. Investing funds requires a court order and all parties' written consent, and suing the receiver requires leave of court.
What the law says
Subject to the control of the court in which the action or proceeding is pending, a receiver shall have the power to bring and defend, in such capacity, actions in his own name; to take and keep possession of the property in controversy; to receive rents; to collect debts due to himself as receiver or to the fund, property, estate, person, or corporation of which he is the receiver; to compound for and compromise the same; to make transfers; to pay outstanding debts; to divide the money and other property that shall remain among the persons legally entitled to receive the same; and generally to do such acts respecting the property as the court may authorize. However, funds in the hands of a receiver may be invested only by order of the court upon the written consent of all the parties to the action. No action may be filed by or against a receiver without leave of the court which appointed him.
Rule 59, Section 6 — General powers of receiver. Read the full provision →
A broad toolkit, but always under court control
Rule 59, Section 6 gives the receiver a wide range of powers — suing and defending suits in his own capacity, holding the disputed property, receiving rents, collecting debts, compromising claims, transferring property, paying debts, and distributing remaining funds among those legally entitled. But the opening phrase, subject to the control of the court, frames every one of these powers as exercised under the supervising court's oversight, not independently.
A catch-all for court-authorized acts
Beyond the enumerated powers, the section adds a general clause allowing the receiver to do such acts respecting the property as the court may authorize. This lets the court adapt the receiver's authority to situations the enumerated list does not specifically anticipate, without needing to amend the rule itself — a receivership involving an unusual kind of property or business can be handled through a specific court authorization rather than forcing the case into one of the listed categories.
Two special limits: investing funds and being sued
Two powers are singled out for extra restriction. Investing funds in the receiver's hands requires both a court order and the written consent of all parties to the action — the receiver cannot decide unilaterally to invest money under receivership. And no action may be filed by or against the receiver at all without leave of the appointing court, keeping litigation involving the receiver under that same court's gatekeeping.
Why these particular powers are court-supervised
Receivership exists to preserve disputed property for whoever is ultimately entitled to it, not to hand the receiver free rein over someone else's assets. Requiring court approval before funds are invested, and leave of court before the receiver sues or is sued, keeps the receiver accountable to the same court that created the receivership in the first place, rather than letting the receiver make unilateral decisions that could dissipate or endanger the very property the receivership was meant to protect.
Related provisions
- Rule 59, Section 6 — General powers of receiver
- Rule 59, Section 7 — Liability for refusal or neglect to deliver property to receiver
- Rule 59, Section 4 — Oath and bond of receiver