“The Courts of Justice Act allows a Receiver/Manager to be appointed where it appears to the judge to be just or convenient to do so. Specifically, s. 101 (1) says:
Injunctions and receivers
101 (1) In the Superior Court of Justice, an interlocutory injunction or mandatory order may be granted, or a receiver or receiver and manager may be appointed by an interlocutory order, where it appears to a judge to be just or convenient to do so.
R.S.O. 1990, c. C.43, s. 101 (1); 1994, c. 12, s. 40; 1996, c. 25, s. 9 (17)
There is further authority for the appointment of a receiver pursuant to the Family Law Rules under Rule 26(3)(g) and Rule 26(4)(c):
Rule 26: Enforcement of Orders
26. (3) PAYMENT ORDERS – A Payment order may be enforced by…
(g) the appointment of a receiver under section 101 of the Courts of Justice Act;
26 (4) OTHER ORDERS – An order other than a payment order may be enforced by…
(c) the appointment of a receiver under section 101 of the Courts of Justice Act.
Receivers may be appointed on a motion pursuant to Rule 41 of the Rules of Civil Procedure, which may be referred to pursuant to Rule 1(7) of the Family Law Rules:
Rule 41 – Rules of Civil Procedure – Appointment of a Receiver
…
HOW OBTAINED
Rule 41.02 The appointment of a receiver under section 101 of the Courts of Justice Act may be obtained on motion to a judge in a pending or intended proceeding.
FORM OF ORDER
Rule 41.03 An order appointing a receiver shall,
Name the person appointed or refer that issue in accordance with Rule 54;
Specify the amount and terms of the security, if any, to be furnished by the receiver for the proper performance of the receiver’s duties, or refer that issue in accordance with Rule 54;
State whether the receiver is also appointed as manager and, if necessary, define the scope of the receiver’s managerial powers; and
Contain such directions and impose such terms as are just.
REFERENCE OF CONDUCT OF RECEIVERSHIP
Rule 41.04 An order appointing a receiver may refer the conduct of all or part of the receivership in accordance with Rule 54.
DIRECTIONS
Rule 41.05 A receiver may obtain directions at any time on motion to a judge, unless there has been a reference of the conduct of the receivership, in which case the motion shall be made to the referee.
DISCHARGE
Rule 41.06 A receiver may be discharged only by the order of a judge.
…
Rule 1 (7) MATTERS NOT COVERED IN RULES – If these rules do not cover a matter adequately, the court may give directions, and the practice shall be decided by analogy to these rules, by reference to the Courts of Justice Act and the Act governing the case and, if the court considers it appropriate, by reference to the Rules of Civil Procedure.
…
Pursuant to Rule 1(8) of the Family Law Rules, the court may deal with the failure to obey an order by making any order that it considers necessary for a just determination of the matter. Lastly, the court must deal with each case justly and promote the primary objective pursuant to Rule 2(2), (3), (4) and (5).
Rule 1(8) Failure to Obey Order
If a person fails to obey an order in a case or a related case, the court may deal with the failure by making any order that it considers necessary for a just determination of the matter, including,
(a) An order for costs;
(b) An order dismissing a claim;
(c) An order striking out any application, answer, notice of motion, motion to change, response to motion to change, financial statement, affidavit, or any other document filed by a party;
(d) An order that all or part of a document that was required to be provided by was not, may not be used in the case;
(e) If the failure to obey was by a party, an order that the party is not entitled to any further order from the court unless the court orders otherwise;
(f) An order postponing the trial or any step in the case; and
(g) On motion, a contempt order.
Rule 2 (2) PRIMARY OBJECTIVE – The primary objective of these rules is to enable the court to deal with cases justly,
Rule 2 (3) DEALING WITH CASES JUSTLY – Dealing with a case justly includes,
(a) Ensuring that the procedure is fair to all parties;
(b) Saving expense and time;
(c) Dealing with the case in ways that are appropriate to its importance and complexity; and
(d) Giving appropriate court resources to the case while taking account of the need to give resources to other cases.
Rule 2 (4) DUTY TO PROMOTE THE PRIMARY OBJECTIVE – The court is required to apply these rules to promote the primary objective and parties and their lawyers are required to help the court to promote the primary objective.
Rule 2 (5) DUTY TO MANAGE CASES – The court shall promote the primary objective by active management of cases, which includes,
(a) At an early stage, identifying the issues and separating and disposing of those that do not need full investigation and trial;
(b) Encouraging and facilitating use of alternatives to the court process;
(c) Helping the parties to settle all or part of the case;
(d) Setting timetables or otherwise controlling the progress of the case;
(e) Considering whether the likely benefits of taking a step justify the cost;
(f) Dealing with as many aspects of the case a possible on the same occasion; and
(g) If appropriate, dealing with the case without parties and their lawyers needing to come to court, on the basis of written documents or by holding a telephone or video conference.
Generally, having regard for the words of section 101 of the Courts of Justice Act, the court has discretion to appoint a Receiver/Manager if it is just or convenient to make such an order. This remedy will only be granted in cases where special circumstances exist. There are many cases that outline the special circumstances under which a Receiver/Manager will be appointed. An order appointing a Receiver/Manager may be properly made if there are no means of legal execution available to the creditor, or if the creditor demonstrates to the court that it is “practically very difficult, if not impossible, to obtain the fruit of his judgement” through legal execution. See Sengmueller v. Sengmueller, [1996] O.J. No. 1942, (Ont. C.J. Gen. Div.) and Goldschmidt v. Oberrheinishe Metallwerke, [1906] 1 K.B. 373.”