Burke & Herbert Bank & Trust Company v. Bare Arms Limited Liability Company, et al.

Summary

The document is a magistrate judge’s Report and Recommendation addressing Burke & Herbert Bank & Trust Company’s emergency motion to appoint a receiver over collateral securing allegedly defaulted financial agreements. The court recommends granting the motion under Federal Rule of Civil Procedure 66, appointing a receiver, and excluding the defendants’ Chesapeake, Ohio property from the receivership without prejudice.

Holdings

1. The factors substantially favored appointment of a receiver because the collateral was allegedly undersecured, the defendants were insolvent and in default, the agreements provided for appointment of a receiver upon default, the collateral faced imminent danger of loss or diminution, and plaintiff was likely to succeed on the merits.
2. The Chesapeake Property should be removed from the scope of the proposed receivership order without prejudice.

Questions Presented

1. Whether the court should appoint a receiver over the defendants' collateral under Federal Rule of Civil Procedure 66.
2. Whether the parties' contractual agreement permitting appointment of a receiver upon default supported appointment of a receiver.
3. Whether the Chesapeake Property should be excluded from the proposed receivership order without prejudice.

Disposition

other