Receiver’s Fees Should Normally Be Paid from the Receivership, Not a Party

On May 15, 2025, the First Department issued a decision in Tarro v. Amadei, 2025 NY Slip Op. 03003, holding that a receiver’s fees should normally be paid from the receivership, not from a party, explaining:

[T]he court prematurely ordered defendants to bear all costs of the receiver. Typically, a receiver is paid from the receivership, absent exhaustion of those funds or other who special circumstances. If the accounting ultimately reveals that the Company was insolvent because of defendants’ mismanagement or appropriation of Company assets, or if defendants later obstruct the receiver’s efforts, defendants could properly be required to pay those costs.

(Internal citations omitted).

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