Legal Alert - Arizona Court of Appeals Limits its Jurisdiction to Review Receivership Orders
by Ben Reeves
On March 31, 2015, the Arizona Court of Appeals held in AEA Federal Credit Union v. Yuma Funding, Inc., that it lacked jurisdiction to hear an appeal from an order declining to set aside an order appointing or releasing a receiver, because such orders are not final or appealable under A.R.S. § 12-2101(A)(5)(b). This means that even if a trial court erroneously appoints a receiver, the Court of Appeals cannot, and will not, review the appointment unless the objecting party timely appeals the appointing order. Even then, because the appointment of a receiver is reviewed on the very demanding “abuse of discretion” standard, the aggrieved party will face a difficult burden obtaining relief from the appellate court.