Shannon

The issue presented on this appeal is whether a receiver appointed under Code of Civil Procedure section 564 may claim the attorney-client privilege with respect to communications between the receiver and his or her special counsel. We hold the receiver is entitled to the benefit of the privilege and issue a peremptory writ of mandate to the respondent court.

Facts

In October 1987, Duvel, a publicly traded Delaware corporation, merged with Statewide Check Cashing, a California corporation which operated check-cashing stores and other businesses in California and Arizona. On June 29, 1988, First Interstate Bank filed a verified complaint against Duvel and its president, alleging those parties had fraudulently caused an overdraft on Duvel’s account with First Interstate Bank of more than $2.7 million. According to the complaint, Duvel was insolvent or in imminent danger of insolvency so as to warrant the appointment of a receiver. The same day, pursuant to a stipulated order, respondent superior court appointed petitioner, Vincent J. Shannon (Shannon), as Duvel’s receiver. Richard Azevedo, individually and in his capacity as Duvel’s president, executed the…