Legal Memorandum: Appointment of a Receiver in MN

Issue: Under Minnesota law, when do courts generally find the need for the appointment of a receiver?

Area of Law: Bankruptcy & Creditors Rights, Litigation & Procedure
Keywords: Appointment of a receiver; Creditor
Jurisdiction: Minnesota
Cited Cases: 237 N.W.2d 350; 247 N.W. 579; 779 N.W.2d 582; 495 N.W.2d 888; 188 Minn. 496; 306 Minn. 244
Cited Statutes: § 576.01, subd. 1(1)
Date: 12/01/2010

A landlord is entitled to recover from a tenant improperly holding over after the termination of the lease for the use and occupation of the leased property during the holdover period, at a rate based on the previous rental rate for the property.  See Restatement (Second) of Property, Landlord & Tenant, § 14.5 (1977 & Supp. 2009).  A holdover may consist of failing to surrender the premises at the expiration of the lease term by leaving personal property on the premises and failing to make necessary repairs upon surrender.  See B.J. Johnson Partners, LLC v. Koss Paint & Wallpaper, Inc., No. A08-0764 at *6 (Minn. Ct. App. Apr. 7, 2009) (unpublished).  “This was a holdover for which the court found damages.”  Id. at *6.   Although the district court had improperly calculated the total damages amount in that case, the appellate court agreed that holdover rent was required, and that setoffs could be applied in calculating damages.  Id.   


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