A receiver may employ an attorney or accountant only if the court determines that such employment is necessary to the proper conservation and administration of the estate. No order authorizing such employment shall be entered until after a hearing on the fiduciary’s sworn application setting forth facts to support the need therefor, except that where necessary to prevent immediate and irreparable damage such employment may be authorized by the court until an application for authorization of such employment can be made pursuant to this rule. Notice of the application together with a copy of affidavit shall be mailed by ordinary mail, not less than 15 days prior to the date for hearing fixed thereon to all creditors or such of them as the court shall direct and, by certified mail, return receipt requested, to the District Director of Internal Revenue for the Internal Revenue District in which the proceedings are commenced, to the United States Attorney for the District of New Jersey, and to the Attorney General for the State of New Jersey. The court shall authorize such employment if satisfied of the necessity of the employment and that the attorney or accountant is not interested in the litigation or in any of the parties thereto in such a way as would disqualify the attorney or accountant from properly serving the receiver as a fiduciary for all the stockholders and unsecured creditors of the estate. On request by an interested party, the court shall require the receiver to be examined under oath on these issues. The employment of more than one attorney may be authorized, but the total fees allowed them shall not be increased because of the number of attorneys employed.
Rule 4:53-3.Employment of attorney or accountant
Last amended September 1, 1994 · Current through June 18, 2026 · Last verified July 7, 2026
In one sentenceRule 4:53-3 requires a receiver to get court approval, after a hearing on a sworn application and notice to creditors and government offices, before employing an attorney or accountant, and bars increasing total fees just because more than one attorney is employed.
Full Text of Rule 4:53-3
Amendment History
New Jersey publishes each rule’s amendment record in a “History” note beneath the rule. It is reproduced verbatim below; the “R.R.” citations refer to the former Revised Rules numbering the current rules replaced.
Source-R.R. 4:68-4(a) (b) (c); amended July 13, 1994 to be effective September 1, 1994.
Plain-English Summary
A receiver cannot hire counsel or an accountant on its own judgment — the court has to find the employment necessary to properly conserve and administer the estate, based on a hearing on the fiduciary's sworn application, unless immediate and irreparable harm requires interim authorization first. Notice of that application goes out by ordinary mail to creditors at least 15 days ahead of the hearing, and by certified mail to the IRS district director, the U.S. Attorney, and the state Attorney General.
The court approves the employment only if it's satisfied both that it's necessary and that the attorney or accountant has no conflicting interest that would compromise their duty to the estate's stockholders and creditors, and it can require the receiver to be examined under oath on those points. More than one attorney may be employed, but their combined fees cannot grow just because the work is split among them.
Frequently Asked Questions
Can a receiver hire an attorney without court approval?
No. The court must determine that the employment is necessary to properly conserve and administer the estate, based on a hearing on the receiver's sworn application.
Does employing multiple attorneys increase the total fees a receiver can be allowed?
No. The total fees allowed are not increased because more than one attorney was employed.
Source & verification. The rule text and amendment history are reproduced verbatim from the
official New Jersey Rules of Court (N.J. Ct. R. 4:53-3). Prescribed by the Supreme Court of New Jersey (N.J. Const. art. VI, § 2, ¶ 3). The plain-English summary is original and written by us. Last verified July 7, 2026. ·
Official source
Also known as: receiver hiring counselreceivership attorney fees