A. Except as otherwise provided by law, the receiver or liquidator of a domestic or foreign corporation, a domestic or foreign limited liability company, or a domestic or foreign partnership, appointed by a court of this state is the proper defendant in an action to enforce an obligation of the corporation, limited liability company, or partnership, or of its receiver or liquidator. B. The receiver or liquidator may be sued without the necessity of obtaining permission therefor from the court which appointed him.
Art. 740.Corporation; Limited Liability Company; Partnership In Receivership Or Liquidation
Title III. Parties · Chapter 3. Parties Defendant · Enacted 1999 · no amendments on record · Last verified July 30, 2026
In one sentenceArticle 740 makes the court-appointed receiver or liquidator of a corporation, limited liability company, or partnership the proper defendant for that entity's obligations once a Louisiana court has placed it in receivership or liquidation, and lets the receiver or liquidator be sued without seeking the appointing court's permission.
Full Text of Art. 740
Amendment History
Acts 1999, No. 145, §2.
Plain-English Summary
When a corporation, limited liability company, or partnership runs into financial trouble, a Louisiana court can place it into receivership or liquidation — a court-supervised process for taking control of the entity's affairs, whether to reorganize it or wind it down. Article 740 addresses who answers a lawsuit against the entity once that happens: the receiver or liquidator the court has appointed, not the entity itself acting through its ordinary officers.
The rule reaches obligations of the entity and obligations the receiver or liquidator takes on while running it, so a creditor dealing with either kind of claim sues the same person. That consolidation matters because a receiver or liquidator, not the entity's displaced management, controls the assets available to satisfy a judgment while the receivership or liquidation continues.
Paragraph B removes a hurdle a plaintiff might otherwise expect: a receiver or liquidator can be sued without first asking the court that made the appointment for permission. That keeps a creditor from having to obtain leave of court to bring a claim against the entity's affairs while they remain under court supervision.
Frequently Asked Questions
Who do I sue if a company I have a claim against is in receivership?
The receiver or liquidator the Louisiana court has appointed for that corporation, limited liability company, or partnership. Article 740 makes the receiver or liquidator the proper defendant rather than the entity's own officers.
Do I need the appointing court's permission before suing a receiver or liquidator?
No. Article 740, Paragraph B, allows a receiver or liquidator to be sued without first obtaining permission from the court that made the appointment.
What is the difference between receivership and liquidation?
Receivership places an entity's affairs under a court-appointed receiver, often to preserve or reorganize it, while liquidation involves winding the entity down and distributing its assets. Article 740 applies the same rule to both — the court-appointed receiver or liquidator is the proper defendant either way.
Does this article apply to insurance companies?
Not to insurers generally — insurance companies have their own receivership scheme addressed separately in Article 741, which distinguishes between a domiciliary receiver and an ancillary receiver.
Source & verification. Article text is reproduced verbatim from
the vLex (Louisiana Code of Civil Procedure, 2026 Edition). Enacted by the Louisiana Legislature.
Last verified July 30, 2026.
· Official source
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