Short answer. If you refuse or neglect, upon reasonable demand, to deliver the property, money, books, deeds, or documents in your control that are subject of the action, you may be punished for contempt and become liable to the receiver for the value of what you withheld plus all damages the entitled parties suffered as a result.
What the law says
A person who refuses or neglects, upon reasonable demand, to deliver to the receiver all the property, money, books, deeds, notes, bills, documents and papers within his power or control, subject of or involved in the action or proceeding, or in case of disagreement, as determined and ordered by the court, may be punished for contempt and shall be liable to the receiver for the money or the value of the property and other things so refused or neglected to be surrendered, together with all damages that may have been sustained by the party or parties entitled thereto as a consequence of such refusal or neglect.
Rule 59, Section 7 — Liability for refusal or neglect to deliver property to receiver. Read the full provision →
A wide scope of items covered
Rule 59, Section 7 covers far more than just physical property. It applies to money, books, deeds, notes, bills, documents, and papers within a person's power or control that are the subject of or involved in the action, meaning both tangible assets and the paperwork connected to the case can trigger this obligation to deliver, not just the specific item the receivership was established over.
Reasonable demand is the trigger
The obligation to deliver is activated by a reasonable demand, and where there is disagreement about what must be delivered, the court itself determines and orders the matter. This gives the receiver and the party in possession a mechanism to resolve disputes about scope through the court rather than through self-help or standoff, so a genuine dispute over whether an item falls within the receivership does not, by itself, automatically expose someone to contempt.
Two separate consequences for non-compliance
Refusal or neglect to comply carries two distinct consequences. First, the person may be punished for contempt — a direct sanction for defying the court's process. Second, and separately, that person becomes liable to the receiver for the money or value of the property withheld, plus all damages sustained by the parties entitled to it as a result of the refusal or neglect.
Why two remedies exist together
Pairing contempt with personal liability for value and damages addresses two different concerns at once: contempt vindicates the court's authority over its own receivership process, while the liability for value and damages compensates the people actually harmed by the refusal, who might otherwise be left without an adequate remedy if contempt alone were the only consequence available to the court and the affected parties.
Related provisions
- Rule 59, Section 7 — Liability for refusal or neglect to deliver property to receiver
- Rule 59, Section 6 — General powers of receiver
- Rule 59, Section 8 — Termination of receivership; compensation of receiver