Civil Procedure Rules of Nova Scotia  
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Part 15 - Other Kinds of Proceedings

Rule 73 - Receiver

Scope of Rule 73
73.01 (1) This Rule provides for receivership as a final remedy, such as an order appointing a receiver to liquidate mortgaged property or to sell a business as a going concern.
  (2) An interlocutory or interim receivership may be obtained under Rule 41 - Interlocutory Injunction and Receivership.
  (3) A receivership may be ordered and conducted, in accordance with this Rule.
       
Motion for appointment of receiver
73.02 (1) A party who obtains a judgment for an amount of money may make a motion for the appointment of a receiver to enforce the judgment.
  (2) A party who claims for the appointment of a receiver may make a motion for an order appointing a receiver in either of the following circumstances:
   
(a)
the party is entitled to the order under Rule 8 - Default Judgment, or Rule 13 - Summary Judgment;
   
(b)
a judge determines, after the trial of the action or hearing of the application in which the claim is made, that the appointment should be made.
       
Prior and subsequent encumbrancers
73.03 (1) A person who starts a receivership proceeding to enforce a security must, as soon as possible after the proceeding is started, deliver both of the following to a prior registered or recorded security holder:
   
(a)
a copy of the notice by which the proceeding is started;
   
(b)
a statement providing details of the prior security instrument.
  (2) A holder of security with priority over the interest sought to be enforced through receivership need not be joined as a party, unless it is sought to charge expenses of the receivership in priority to the interest of the prior security holder.
  (3) Rule 35.12, of Rule 35 - Parties, provides a method by which a subsequent encumbrancer may become bound by a receivership order.
       
Powers of receiver
73.04   An order appointing a receiver, or a subsequent order, may give the receiver any power necessary to efficiently and fairly conduct the receivership, including power to do any of the following:
   
(a)
take control of the property that is the subject of the receivership;
   
(b)
manage the property and, if also appointed manager of a corporation in receivership, carry on its business;
   
(c)
do anything a sheriff may do under an execution order as provided for in Rule 79 - Enforcement by Execution Order;
   
(d)
protect the property or business, pay the expenses of protection, and recover the expenses from the property in priority to all other interests;
   
(e)
sell the property, or the going concern, in receivership in accordance with the directions of a judge;
   
(f)
recover expenses of the receivership from the property in receivership as a whole, or from parts of the property as allocated by order;
   
(g)
pay the receiver’s interim account as provided for in Rule 73.09;
   
(h)
make a motion for directions or guidance from a judge.
       
Injunction
73.05 (1) A judge may, in the order appointing the receiver or a subsequent order, provide an injunction against a party, a person who is not a party, or unnamed persons, to protect the property in receivership, including documents and electronic information of a party in receivership, and to require delivery of the property to the receiver.
  (2) A person to whom all of the following apply may require a rehearing under Rule 22.06, of Rule 22 - General Provisions for Motions:
   
(a)
the person is affected by an injunction in aid of a receivership;
   
(b)
the person was not given notice, or sufficient notice, of the motion for the injunction;
   
(c)
the person is a party entitled to notice under Rule 31 - Notice, or the person is not a named party.
       
Duties of a receiver
73.06   In addition to the duties prescribed by Section 78 of the Companies Act, Section 65 of the Personal Property Security Act, the order appointing a receiver, or a subsequent order, the receiver has a duty to do each of the following:
   
(a)
retain a lawyer;
   
(b)
report to the court at times prescribed by the order and, in any case, at the conclusion of the receivership;
   
(c)
include in the final report an account of all receipts and disbursements.
       
Security
73.07   A judge who appoints a receiver must require the receiver to file security in an amount and on terms set by the judge, unless the party who makes the motion satisfies the judge of either of the following:
   
(a)
the receiver is a member of the Canadian Association of Insolvency and Restructuring Professionals and carries professional liability insurance;
   
(b)
a party has filed an undertaking to pay for damages that may be caused by the receiver and the terms of the undertaking and the capacity of the party to pay the damages are clearly sufficient.
       
Motion for directions and other assistance
73.08 (1) A receiver, or a person who has an interest that may be affected by a receivership, may make a motion for a judge to direct or give guidance to the receiver.
  (2) In addition to a motion for directions or guidance, a receiver may make a motion for any of the following:
   
(a)
production of a document, electronic information, or other thing by a party or a person who is not a party;
   
(b)
examination of a witness conducted as provided in Rule 18 - Discovery, or as otherwise provided in the order;
   
(c)
interpleader under Rule 76 - Interpleader;
   
(d)
an order under Rule 42 - Preservation Order, as if the receiver were a party;
   
(e)
any other order that aids the receivership.
       
Payment of fees and disbursements
73.09 (1) A receiver’s final account for fees and disbursements may not be paid from the proceeds of the receivership until the account is approved by a judge.
  (2) The interim account of a receiver who files the following documents may be paid from the proceeds of the receivership, unless the proceeds are required for the administration of the receivership:
   
(a)
a copy of the interim account;
   
(b)
an undertaking to repay any amount not approved by a judge.
       
Replacing receiver
73.10   A judge may remove a receiver and appoint a replacement.
       
Passing accounts and discharge
73.11 (1) A receiver who completes the tasks for which the receivership order was granted must make a motion for an order passing the receiver’s accounts, approving fees and expenses not yet approved, and discharging the receiver.
  (2) A judge who hears a motion for a discharge may do any of the following:
   
(a)
pass the accounts or order repayment of an expense not approved;
   
(b)
approve the receiver’s fees and disbursements and allow payment of them or, if advances exceed the amount approved, order repayment;
   
(c)
discharge the receiver wholly, or on conditions.
  (3) A judge who is satisfied that a receiver delays in bringing a receivership to conclusion or in making a motion to pass accounts, set remuneration, and be discharged may do any of the following:
   
(a)
replace the receiver;
   
(b)
refuse some or all remuneration;
   
(c)
order the receiver to pay expenses caused by the delay.
       
Receivership jointly with another court
73.12 (1) A judge who is satisfied on all of the following may order that a receivership in Nova Scotia be directed by a judge in consultation with a judge of a court in another jurisdiction that has power to appoint a receiver:
   
(a)
both courts have appointed, or are about to appoint, the same person to be receiver;
   
(b)
the subject of the receivership is substantially connected to both jurisdictions;
   
(c)
the other court has accepted, or is likely to accept, the consultation.
  (2) Rule 86 - Judicial Communication Across Borders, provides for a receivership directed in consultation with a judge in another jurisdiction.
       
Auxiliary receivership
73.13 (1) A judge may, in a proceeding started under Rule 5 - Application, appoint as an auxiliary receiver a person, or an agent of a person, who is appointed as receiver by a court outside Nova Scotia, if the judge is satisfied on both of the following:
   
(a)
the order of the other court is final, rather than interim or interlocutory;
   
(b)
the Nova Scotia order will aid the order of the other court.
  (2) An order appointing an auxiliary receiver must provide for the receivership of assets in Nova Scotia and require approval by the Supreme Court of Nova Scotia of the sale of property in Nova Scotia.
  (3) The order may otherwise leave control of the receivership with the other court, including control of any of the following:
   
(a)
marketing the property in receivership;
   
(b)
passing accounts;
   
(c)
fixing or approving remuneration;
   
(d)
discharging the receiver.
  (4) The auxiliary receiver must report to the court at a time prescribed by the order and at the conclusion of the auxiliary receivership.
       
Auxiliary interlocutory receivership
73.14   A person who seeks the appointment of a receiver auxiliary to an interlocutory or interim receivership in another jurisdiction may start a proceeding under Rule 5 - Application, and make a motion under Rule 41 - Interlocutory Injunction and Receivership.
       

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