Receiverships: Potential Negligence Of An Indiana Receiver

Indiana Commercial Foreclosure Law blog continues to impress with its coverage of commercial law in the Indiana federal courts. Reading Potential Negligence Of An Indiana Receiver, I get the impression that our federal courts see more receivership cases than we do in the state courts.

"Judge Theresa Springmann of the Northern District of Indiana issued an opinion on November 5, 2007 in the case FTC v. Think Achievement, 2007 U.S. Dist. LEXIS 82621 (N.D. Ind. 2007) (ThinkAchievementOpinion.pdf). Think Achievement was a negligence case brought against a court-appointed receiver relating to the alleged failure to preserve and protect the assets of the receivership estate. The opinion addresses some of the general rules in Indiana and the Seventh Circuit that apply to receivers. Although the underlying case dealt with Federal Trade Commission Act violations, the opinion relates to secured lenders because of their interest in holding receivers accountable for the protection of the receivership estate."

The Indiana Commercial Foreclosure Law blog provides more analysis of the case and is worth reading.

From my experience and conversations with other local lawyers, the old bankruptcy code spoiled us when it comes to alternatives to bankruptcy. I put receiverships into the category of bankruptcy alternatives even if more accurately the process is a collections process. You will be seeing more in the next few weeks on Indiana's receivership law. In the meantime, I would point out that receiverships are not as unknown as assignments for benefit of creditors (see my articles on that little used bankruptcy alternative here). I did a quick Google search through the Indiana appellate court archives and the results can be seen here.