Epic Enterprises LLC v. 10 Brown & Howard Wharf Condominium Ass'n
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The Supreme Court vacated the order of the superior court granting the request of Petitioners to appoint a temporary receiver for Respondent, Bard Group, LLC, holding that Petitioners lacked standing to seek the appointment of a receiver, either under statute or as a matter of equity.
Respondent owned nine of thirteen condominium units at a certain condominium in Newport, and Petitioners owned the remaining four units. Respondent had a controlling voting share in the condominium association. When the condominium roof began to leak and repairs were not timely made Petitioners filed a petition for the appointment of a receiver for the association. Thereafter, Respondent's mortgage was foreclosed upon. Petitioners then filed a second motion and petition to appoint a receiver in this case, only this time they sought to appoint a receiver for Respondent and not the association. The hearing justice found that Petitioners had standing to pursue the receivership and appointed a temporary receiver for Respondent. The Supreme Court vacated the order, holding that Petitioners lacked standing to seek the appointment of a receiver, and the hearing justice erred in appointing one.
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