Monitorships

A court monitor is an effective tool that can be used to resolve disputes between adverse parties. Think of a court monitor as a court-appointed fiduciary, with as much legitimacy as a receiver and bankruptcy trustee. However, a monitor is more limited than a special master or receiver. While a receiver or special master stands in the shoes of the owner, a court monitor audits, investigates, and can seek judicial relief for non-compliance with corporate charters or federal, state, or local law. A court monitor is normally put in place with consent from both parties. This occurs when the parties agree that there is some issue that needs monitoring. The monitor is a less drastic remedy than a receivership or special master, which is why it is often based upon an agreement instead of being forced on a party. However, if a court monitor is ineffective at resolving the issue a receiver can ultimately be appointed.

A recent example of how Bay Area Receivership Group was used in a court monitorship occurred in Oakland with a large undeveloped real estate development. The owners were present and involved, which meant the use of a receivership was premature. However, the involvement of a court monitor to ensure that the blight caused by the property be brought to remedy was proper.