The appellants, a privately appointed receiver and his company, appealed a trial judgment ordering an accounting and denying receiver's fees due to egregious breaches of fiduciary duty and self-dealing in the receivership of a horse farming operation.
The respondents cross-appealed, seeking the equitable remedy of tracing regarding a specific farm property improperly acquired by the receiver's nephew.
The Court of Appeal dismissed the appeal, finding overwhelming evidence of the receiver's complete failure to appreciate his duties, including acting in conflict of interest.
The Court allowed the cross-appeal in part, granting the respondents the right to trace the proceeds realized from the farm property and ordering the receiver to disgorge any profits.
