Receiverships May Continue Even After Judgment Is Paid

The appointment of a receiver can be a powerful tool in obtaining satisfaction of a judgment against a debtor. A court's broad discretion to keep a receiver in place, once the receiver has been appointed, was reaffirmed recently by the Ninth Circuit Court of Appeals in WB Music Corp., et al. v. Royce International Broadcasting Corporation, Case No. 21-55264 (9th Cir. Aug. 31, 2022).

The defendants owned and operated three radio stations, in California and Nevada. The plaintiffs owned copyrights of various musical works, and sued the defendants for copyright violations resulting from broadcasts of unauthorized performances of the works. The plaintiffs obtained a substantial judgment against the defendants.