How Are New York Receivers Paid?
No receiver in New York sets their own fee. Compensation is fixed by the court, capped by statute, constrained by Part 36, and paid only after an application the parties can contest.
The statutory commission
CPLR 8004(a) provides that a receiver is entitled to a commission not exceeding five percent of the sums received and disbursed, in an amount the court fixes. It is a ceiling, not an entitlement — courts routinely award less where the work did not justify the maximum.
CPLR 8004(b) addresses the situation where the estate produced little or nothing. Where the receiver has been unable to realize funds sufficient to cover reasonable compensation, the court may fix compensation and direct that it be paid by the party who moved for the appointment, or from the property itself.
What Part 36 requires
- Appointments come from the approved list maintained by the Chief Administrator, with limited exceptions.
- Receivers file a notice of appointment and, at the conclusion, a certification of compensation.
- Compensation above the threshold set in the rule requires review by the Administrative Judge in addition to the appointing judge.
- Appointees are subject to annual compensation limits designed to prevent concentration of appointments.
- Relatives of judges, certain political party officers, and other categories are disqualified from appointment.
The fee application
A receiver seeking payment moves for approval on notice to the parties, supported by an accounting, contemporaneous time records or a detailed narrative of services, the schedule of receipts and disbursements, and the statutory computation. Judges look for a clear line between receiver services, legal services, and accounting services, each billed at the appropriate rate.
Interim allowances are common in longer receiverships — often quarterly — with a final application on discharge. Interim awards are subject to disgorgement if the final accounting does not support them.
How courts test reasonableness
- Complexity of the assets and the litigation surrounding them.
- Time reasonably required and results actually achieved.
- Whether the receiver preserved or increased value.
- Whether costs were proportionate to the size of the estate.
- Duplication between the receiver and retained professionals.
- Compliance with the order, reporting obligations, and Part 36.
Counsel, accountants, and brokers
Professionals retained by the receiver are paid from the estate on court approval, typically on a request that identifies the necessity for the retention, the rates, and the scope. Where the receiver is an attorney performing legal work, most courts require separate time entries so that legal work is not billed as a commission and vice versa.
The most common fee-application problem is not the rate — it is the absence of contemporaneous records tying hours to tasks and outcomes.
New York Receivership Guide
What every business owner should know before seeking — or opposing — a receiver.
- The CPLR 6401 standard, in plain language
- What to put in (and keep out of) the appointment order
- What receiverships actually cost
- Alternatives courts prefer, and how to propose them
Frequently asked questions
Receivership questions are fact-specific. These answers are general information, not legal advice for your matter.
No. Five percent of sums received and disbursed is the statutory maximum under CPLR 8004(a). Courts award what is reasonable on the record, and larger estates frequently draw awards well below the cap.
Under CPLR 8004(b), the court may direct the party who sought the appointment to pay reasonable compensation, or allow payment from the property. Many orders require the movant to advance fees or post security up front.
Parties can propose a structure in a stipulated order, but the court fixes compensation and Part 36 review still applies. A proposed rate is a recommendation, not a binding agreement.
As the order provides. Quarterly interim applications are common in operating receiverships, with a final application at discharge.
Seeking a receiver, opposing one, or considering an appointment?
Part 36 approved receiver and receivership counsel for New York City and Long Island matters.