Document Type
Research Memorandum
Publication Date
2022
Abstract
(Excerpt)
In Barton v. Barbour, the Supreme Court established the general rule that a lawsuit cannot be brought against a receiver for acts done within their authority without leave of the court that appointed such receiver. The Court precluded a personal injury suit against a company's receiver without leave of the appointing court, finding that if the plaintiff were permitted to recover on his personal injury claim against the receiver, he would be recovering from the receivership property "without regard to the rights of other creditors or the orders of the court which is administering the trust property." The Court explained the Barton holding in terms of exclusive subject matter jurisdiction: failure to obtain leave from the appointing court would result in "a usurpation of the powers and duties which belonged exclusively to another court...and it would [make] impossible...the duty of that court to distribute...assets to creditors equitably and according to their respective priorities."