Did you miss the CRA Annual Conference? We’ll be sharing articles over the coming weeks on each of the panels from the conference, written by ChatGPT.
Managing Appointments by State and Local Entities
CRA Annual Conference 2025 | St. Louis
Panelists: John Farnum (Moderator, Miles & Stockbridge), Jeremiah Foster (Resolute), Courtney Jones (Chicago Homes Realty Group), Mark Owens (Barnes & Thornburg)
Introduction
Receiverships appointed by state and local entities carry unique responsibilities and challenges. At the CRA Annual Conference 2025, a panel of experienced professionals convened to discuss the appointment process, motivations of public authorities, and the practical differences in managing these engagements compared to private appointments.
Who Makes the Appointments?
Appointments can originate from a variety of authorities, including:
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Attorneys General
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Secretaries of State
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Insurance Commissioners
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Courts (federal and state)
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Other state or local agencies
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This diversity of appointing authorities underscores the importance of understanding the motivations and expectations of each entity.
How Are Appointments Sourced?
The panel highlighted the many pathways that lead to appointment, ranging from informal outreach to structured processes. Methods include:
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Random phone calls from agencies seeking assistance.
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Formal RFP processes, such as those used in Arizona.
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Education system referrals in cases involving schools or institutions.
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Professional referrals and network connections built on reputation and experience
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Motivations Behind Appointments
Public authorities generally appoint receivers to serve three main objectives:
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Public safety and protection of citizens.
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Regulatory oversight, often through departments of insurance or other watchdogs.
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Opportunities for corrective intervention, particularly in cases of fraud, dilapidation, or mismanagement
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Types of Cases Commonly Seen
State and local entities appoint receivers across a wide spectrum of matters, including:
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Insurance company failures
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Securities fraud
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Dilapidated properties
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Senior living facilities
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Education-related matters
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Correctional facilities and prisons
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Each type brings its own set of operational, regulatory, and reputational challenges.
What Makes These Appointments Different?
Managing an appointment from a public entity differs significantly from private matters in several ways:
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Information flow: Agencies must understand the receiver does not work for them but acts independently for the benefit of stakeholders.
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Standardized terms: Appointments may come with pre-set agreements, fee structures, or discounted rates.
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Conflicts of interest: Navigating secured lenders’ expectations when they are not the appointing party can create tension.
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Large firm dynamics: Potential conflicts and waiver issues are magnified when multiple parties are involved
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Additionally, federal equity proceedings differ from state court proceedings in publicity, scope, and the range of victims and creditors involved
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War Stories and Lessons Learned
Panelists shared real-world experiences that underscored the complexities of managing state and local entity appointments. From balancing political sensitivities to addressing urgent public safety concerns, these stories illustrated both the risks and the impact of effective receivership leadership.
Conclusion
Appointments by state and local entities bring heightened visibility, broader constituencies, and unique regulatory expectations. As the panel at CRA 2025 emphasized, success requires balancing independence with responsiveness, protecting victims and creditors, and navigating the complex motivations of public agencies.
For practitioners, mastering these distinctions is key to delivering value in some of the most challenging receivership environments.