Court-Appointed Receiver for Businesses, Commercial Real Estate & Regulated Industries
A Part 36 approved fiduciary for courts, counsel, lenders, shareholders, investors, and creditors — combining commercial litigation experience with the operational skill to actually run a business under judicial supervision.
Approved
Approved New York Court Receiver (22 NYCRR Part 36)
Michael James has successfully completed the training requirements and has been approved to serve as a Court Receiver under 22 NYCRR Part 36, the New York Unified Court System's program governing fiduciary appointments.
As a Part 36 approved fiduciary, Michael James is eligible to accept court appointments involving the preservation, management, operation, and disposition of businesses and assets under judicial supervision.
Legal Experience Meets Real Business Operations
Many receivers possess legal experience.
Few have operated regulated businesses with employees, inventory, marketing, vendor management, compliance obligations, payroll, and cash flow responsibilities.
Michael James combines courtroom advocacy with active business ownership and operational management, allowing him to stabilize businesses while protecting value for all stakeholders.
- Operating regulated businesses
- Managing employees
- Negotiating with creditors
- Real estate
- Financial restructuring
- Corporate governance
- Litigation
- Regulatory compliance
- Business acquisitions and sales
What Is a Court Receiver?
A court-appointed receiver is a neutral fiduciary appointed to preserve, manage, or liquidate property while litigation is pending or after judgment. Receivers commonly oversee:
- Commercial buildings
- Apartment buildings
- Cannabis businesses
- Restaurants
- Bars
- Nightclubs
- Liquor stores
- Hotels
- Professional practices
- Retail businesses
- Manufacturing companies
- Investment property
- Family-owned businesses
- Corporate and partnership disputes
When Courts Appoint a Receiver
Courts turn to a receiver when assets are at risk, control is contested, or no party can be trusted to hold the estate steady. These are the situations where a receivership is most often granted.
When 50/50 owners cannot agree, a court-appointed receiver breaks the paralysis — signing checks, meeting payroll, and keeping the company operating while the dispute is litigated.
In dissolution and oppression proceedings, a neutral fiduciary holds the corporate books, prevents self-dealing, and gives the court reliable financial visibility.
Licensed operators cannot simply be shut down. A cannabis receivership preserves the license, maintains OCM compliance, and protects seed-to-sale inventory integrity.
Restaurants, bars, and hotels lose value in days, not months. A hospitality receiver keeps staff, vendors, and reservations intact while ownership is sorted out.
A lapsed or surrendered license destroys most of the enterprise value. Active management preserves the license and the goodwill attached to it.
In foreclosure and ownership disputes, a receiver collects and escrows rent, funds maintenance, manages vendors, and reports income to the court.
Where cash is leaking and creditors are circling, a business receiver imposes controls, renegotiates terms, and stabilizes operations before value is lost.
When there is a credible risk assets will be dissipated, hidden, or encumbered, courts appoint a receiver to take custody until the case is resolved.
What a Receiver Actually Does
The powers below come from the appointing order. Together they describe the day-to-day reality of a commercial receivership.
Assumes day-to-day management of the business under the authority of the appointing order.
Secures premises, cash, inventory, equipment, books, and records immediately upon appointment.
Keeps licenses, permits, filings, and agency reporting current so the estate keeps its most valuable rights.
Manages payroll, staffing, supervision, and retention of the personnel the business depends on.
Controls receipts and disbursements, funds only necessary expenses, and keeps the business solvent.
Files periodic accountings and status reports, and seeks instruction before any material decision.
Owes no allegiance to any party. The receiver answers to the court and to the estate alone.
Positions the business for the best possible outcome — sale, return to ownership, or orderly wind-down.
Receivers Are Often Asked to Operate a Functioning Business — Not Simply Preserve Assets
A distressed business does not stabilize because someone reviews a balance sheet. It stabilizes when payroll is met, vendors are reassured, customers keep coming back, licenses stay intact, and expenses are brought under control — in the first weeks, not the first quarter.
Operating a business under court supervision requires practical management skill in addition to legal expertise. Receivers are ultimately judged by their ability to preserve or increase enterprise value, and every decision here is measured against what a buyer, a creditor, or the court will see at the end of the case.
Counts, ordering, shrinkage controls, and regulated-product tracking that keeps product moving without compliance exposure.
Meeting payroll on time, retaining the people who actually run the business, and making hard staffing decisions early.
Reassuring suppliers, resolving arrears, and renegotiating terms so critical deliveries never stop.
Weekly cash forecasting, disbursement discipline, and expense reduction that turns a bleeding business into a stable one.
Keeping customers, bookings, and reviews intact — enterprise value is measured in revenue, not just assets.
Licenses, permits, inspections, and agency reporting maintained throughout the appointment.
A written plan with milestones the court can measure, not an open-ended custodial holding pattern.
Decisions made in the first 72 hours, when the business is most fragile and most stakeholders are watching.
Court Receiverships for Regulated Cannabis Businesses
A cannabis receivership presents operational challenges no ordinary receiver is prepared for. Product cannot simply be warehoused, sold, or written off. Inventory is tracked seed-to-sale, security requirements are non-negotiable, vendor relationships depend on licensed counterparties, and the Office of Cannabis Management must be kept informed of any change in control — including the appointment of a receiver.
A mishandled cannabis receivership can cost the estate its most valuable asset: the license itself. Preserving license value means keeping the business operating in compliance, not simply locking the doors. Experience operating a licensed cannabis dispensary provides practical insight into how these businesses run day to day and what regulators expect to see.
Explore our cannabis compliance practice →- OCM compliance
- Inventory control
- Vendor relationships
- Security requirements
- Licensing and change-of-control reporting
- Preservation of license value
- Maintaining operations
- Employees and payroll
- Receivership planning
- Asset preservation
Hospitality and Liquor-Licensed Businesses
Restaurants, bars, nightclubs, liquor stores, hotels, and hospitality operations lose value faster than almost any other asset class. Staff leave, vendors stop delivering, reservations dry up, and reviews turn — often within weeks. A hospitality receiver has to keep the business open, not merely inventory what is left of it.
The liquor license is frequently the single most valuable item on the balance sheet, and it is tied to continued, compliant operation. Lapses, unreported changes in control, or a shuttered premises can jeopardize the license and with it the enterprise value the court is trying to preserve. Active management — payroll, purchasing, compliance, and customer retention — is what protects that value through to sale or transition.
- Restaurants
- Bars
- Nightclubs
- Liquor stores
- Hotels
- Catering and event venues
- Liquor license preservation
- Staffing and payroll continuity
- Vendor and supplier management
- Health and safety compliance
Commercial Real Estate Receiverships
In foreclosure and ownership disputes, the property still has tenants, payroll, utilities, insurance, and code obligations. A receiver steps in to keep the asset performing: collecting and escrowing rent, funding necessary maintenance, managing vendors and building staff, and reporting income and expenses to the court.
The goal is a property that appraises and sells well at the end of the case — not one that deteriorates while the litigation runs.
- Office buildings
- Apartment complexes
- Mixed-use properties
- Retail centers
- Foreclosure actions
- Rent collection
- Vendor management
- Property maintenance
- Capital improvements
- Financial reporting
The Receivership Timeline
A disciplined sequence from the day the order is signed through transition or sale.
- 1Appointment
Order entered, bond posted, and the receiver's powers and reporting duties are defined.
- 2Immediate Stabilization
Secure premises, cash, keys, books, records, inventory, and bank accounts within days.
- 3Operational Review
Assess staffing, leases, vendors, licenses, contracts, and revenue drivers.
- 4Cash Flow Preservation
New receivership accounts, disbursement controls, expense reduction, and reconciled reporting.
- 5Court Reporting
Transparent periodic accountings so every stakeholder sees the same numbers.
- 6Resolution
Settlement, buyout, refinancing, or judgment — the receiver holds value steady until the case resolves.
- 7Transition or Sale
Court-approved sale, return to ownership, or orderly wind-down and distribution.
Commercial Litigation Situations Leading to Receivership
Corporate deadlock, business dissolution, foreclosure, fraud, and judgment enforcement are the most common paths to a fiduciary appointment.
Owners at an impasse and the company cannot make decisions or pay its obligations.
Competing partners each claim control of cash, books, or day-to-day operations.
Lenders seeking a neutral party to collect rents and protect collateral pending sale.
Dissolution or oppression claims where a neutral must hold the company steady.
Regulated operators where license continuity depends on compliant management.
Buildings requiring professional management, leasing, and vendor oversight.
Stalled projects needing controlled disbursement, contractor management, and completion.
Court-supervised collection, escrow, and accounting of rental income.
Tracing funds, reconstructing books, and reporting findings to the court.
Orderly wind-down, liquidation, and distribution under court supervision.
Receivers appointed post-judgment to reach assets and satisfy creditors.
Freezing dissipation of inventory, receivables, equipment, or cash.
Industries We Can Manage
Operating knowledge across regulated, hospitality, real estate, and professional businesses.
Services as Receiver
Full operational and fiduciary management, from the first day of appointment through final accounting.
Assume day-to-day control, keep the doors open, and stabilize revenue.
Payroll, staffing decisions, supervision, and continuity of key personnel.
Renegotiate terms, resolve arrears, and secure critical supply.
Daily controls over receipts, disbursements, and reserves.
Clear, auditable statements for the court and stakeholders.
Tenant communication, arrears recovery, and escrowed deposits.
Receivership accounts opened, funded, and reconciled under court order.
Counts, security, shrinkage controls, and regulated-product tracking.
Marketing, bidding procedures, and court-approved dispositions.
Stop the bleeding, restore vendor and customer confidence.
Protect licenses, permits, and filings while under receivership.
Periodic accountings, status reports, and applications for instruction.
Orderly closure, claims handling, and final distribution.
Diligence, license transfers, and closing management.
Appointment Qualifications
What courts, lenders, and opposing counsel can expect from this firm in every appointment.
No allegiance to any party. The receiver answers to the court and the estate.
Open books, prompt responses to counsel, and no surprises at accounting time.
Timely reports and applications so the court retains full oversight.
Segregated accounts, documented disbursements, and reconciled statements.
Lean administration that avoids consuming the estate in fees.
Decisions measured against recovery for creditors and owners alike.
Experience & Professional Standing
A record built on operating businesses, managing regulated assets, and appearing before New York courts and agencies.
Training completed and approved for court appointment as a receiver under 22 NYCRR Part 36, the New York Unified Court System's fiduciary appointment program.
Available on request for lenders, counsel, and courts evaluating a proposed receiver. This record is updated as appointments are received.
Hospitality, licensed cannabis, commercial and mixed-use real estate, retail, professional practices, and construction.
Deadlocked ownership disputes, distressed hospitality operations, license transfers under litigation, and asset dispositions — described in summary form with confidentiality preserved.
Admitted in New York and New Jersey; Super Lawyers recognized. Bar and industry associations across hospitality and regulated business law.
Ongoing writing on receiverships, CPLR 6401 practice, and distressed regulated businesses in our Knowledge Center below.
Available for CLE programs and industry panels on receiverships, distressed hospitality, and cannabis business continuity.
Court Receiver FAQs
A court receiver is a neutral fiduciary appointed by a judge to take custody of property or a business, preserve its value, and manage or liquidate it while litigation is pending or after judgment. In New York, temporary receivers are commonly appointed under CPLR 6401, and fiduciary appointments are governed by 22 NYCRR Part 36.
Any party with an interest in the property or business can move for appointment — lenders and mortgagees in foreclosure, shareholders in dissolution or oppression proceedings, partners in a deadlocked company, judgment creditors seeking enforcement, and in some cases the court on its own motion.
A receiver's powers come from the appointing order. Typical powers include taking possession of assets, operating the business, opening receivership bank accounts, hiring and terminating employees, retaining professionals, collecting rents and receivables, and — with further court approval — selling assets.
Yes. Operating receiverships are common where shutting down would destroy value. The receiver runs the business as a going concern — payroll, inventory, vendors, marketing, and compliance — while reporting to the court. This is where operational experience separates receivers from one another.
Courts appoint receivers when there is a real danger that property will be lost, materially injured, removed, or dissipated, or when ownership is so contested that no party can be trusted to hold the estate. Deadlock, fraud allegations, foreclosure, and regulated businesses at risk of losing a license are frequent triggers.
A receiver may sell assets when the appointing order authorizes it or the court approves a specific sale. Sales normally follow noticed motion practice, appraisal or marketing evidence, and court-approved bidding procedures, with proceeds held in the receivership account pending distribution.
Receivers are generally compensated from the assets or revenue of the receivership estate, subject to court approval, with commissions capped by statute (CPLR 8004) unless the court orders otherwise. In some cases a lender or moving party advances fees or posts funds to start the administration.
22 NYCRR Part 36 is the rule of the Chief Judge governing appointments of fiduciaries — including receivers, guardians, and referees — by New York courts. It sets training, registration, disclosure, and compensation requirements. Michael James has completed the Part 36 training requirements and is approved to accept receiver appointments.
It lasts as long as the court order provides. Some receiverships resolve in a few months once a sale or settlement closes; contested business disputes and foreclosure receiverships can run a year or more until the underlying case ends.
Yes, where the order grants operational control. A receiver can remove or supervise existing management, retain key personnel who add value, and install new controls over cash and decision-making.
Regulated cannabis businesses can continue operating under a receiver, but only with careful attention to licensing rules, disclosure of the receiver to the regulator, seed-to-sale inventory tracking, and security requirements. Operational experience with licensed businesses matters enormously here.
In commercial real estate receiverships, rent collection is usually the core duty: notifying tenants, collecting and escrowing rent, pursuing arrears, funding necessary maintenance, and accounting to the court for every dollar.
Receivership Knowledge Center
In-depth guides on New York receivership practice. New articles are published on a rolling basis — contact us if you need guidance on a topic before it is posted.
- What Is a Court Receiver in New York?Coming soon
- When Will a Court Appoint a Receiver Under CPLR 6401?Coming soon
- Receiverships in Cannabis BusinessesComing soon
- Commercial Foreclosure Receiverships ExplainedComing soon
- Rights and Duties of a Court-Appointed ReceiverComing soon
- How Receivers Are PaidComing soon
- Receivers vs. Bankruptcy TrusteesComing soon
- Shareholder Deadlock and ReceivershipsComing soon
- Preparing an Application for Appointment of a Temporary ReceiverComing soon
Need a Court-Appointed Receiver or Seeking Appointment of One?
Whether you are counsel moving for appointment, a court evaluating a candidate, or a lender, shareholder, investor, or creditor with value at risk, Michael James offers a Part 36 approved fiduciary with real operating experience.