W.E. Erickson Construction, Inc. v. Congress-Kenilworth Corp.
Illinois Court of Appeals
445 N.E.2d 1209 (1983)
Erickson (plaintiff) built a water slide for CK (defendant) and accepted a deed to the property as security when CK fell behind on payments, but the deed proved worthless because CK never actually owned the land; after the water park opened, CK's principals formed a new corporation, Thunder Mountain, that took over operations and collected the revenues. When Erickson sued for the $550,000 still owed and sought a receiver fearing diversion of funds, it introduced no additional evidence supporting that fear at the four-day hearing, yet the trial court appointed a receiver anyway; CK appealed.
Whether a receiver will only be appointed where the plaintiff shows both that a special fund exists to which it has a right to resort and that the property or its income is in danger of loss from neglect, waste, misconduct, or insolvency.