Wash. Court of Appeals published opinion — D2 59088-3-II Published Opinion.pdf

Citation: Wash. Court of Appeals published opinion — D2 59088-3-II Published Opinion.pdf
Jurisdiction: Washington (state)
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Original Source: https://www.courts.wa.gov/opinions/pdf/D2%2059088-3-II%20Published%20Opinion.pdf ↗

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receivership law, there are some differences. For instance, a bankruptcy trustee has statutory

authorization to act on behalf of creditors. Winkler v. McCloskey, 83 F.4th 720, 725 (9th Cir.

2023); see 11 U.S.C. § 544. Conversely, though the purpose of the receivership statute is to benefit

secured creditors, a receiver “stands in the shoes of the receivership entities, not in the shoes of

the creditors.” Winkler, 83 F.4th at 727; Morse Electro Prods. Corp., 90 Wn.2d at 198 (stating

“the receiver stands in the shoes of the insolvent”); see RCW 7.60.060.

Here, RCW 7.60.130(2) provides that if a party to an executory contract has a claim arising

from a receiver’s rejection of that contract, the claim must be served upon on the receiver in the

manner provided for in RCW 7.60.210.

RCW 7.60.210 states that any claim, “other than claims of creditors with security interests

in or other liens against property of the estate,” that arises prior to the receiver’s appointment must

be written in a “‘Proof of Claim’” form and served upon the receiver. RCW 7.60.210(1), (3).

RCW 7.60.210 is applicable to LGI, and based on the language of RCW 7.60.130(2), LGI has a

claim “arising prior to the receiver’s appointment.” RCW 7.60.210(1). The record shows that

LGI submitted a proof of claim form in accordance with RCW 7.60.210.

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No. 59088-3-II

The receivership statute also provides a clear schedule of distribution priorities. RCW

7.60.230. Secured creditors with liens on the property of the receivership estate hold first position

and “shall receive the proceeds from the disposition of their collateral.” RCW 7.60.230(1)(a). The