In an effort to provide more clarity and predictability, Florida enacted the Uniform Commercial Real Estate Receivership Act (UCRERA) effective July 1. A task force of The Florida Bar business law section found that existing receivership law in Florida did not provide a clear standard for the appointment of a receiver or set forth a receiver’s powers and duties, which led to a lack of predictability concerning receiverships in the commercial real estate context. The act articulates the duties and powers of the receiver, the circumstances under which a receiver may be appointed, and the logistical components of a receivership. Additionally, in a time when the pandemic-stricken economy may lead to more receiverships and when more of corporate America is analyzing its diversity and inclusion efforts, the act may have the unintended effect of leading to the appointment of more women and minority receivers by demystifying the process.

Statistics concerning the judicial appointment of women and minorities as receivers in the commercial real estate are scant. A 1997 report of the working committees to the Second Circuit Task Force on Gender, Racial, and Ethnic Fairness in the Courts found the process of appointing quasi-judicial officers, such as receivers, is ad hoc and leaves no formal record of the race and gender of such appointees. The report also found that while white women made up 21.7% of federal practitioners, they received only 16% of appointments. The numbers were worse for minorities, which received 3.5% of appointments despite comprising 6.6% of federal practitioners. Explaining a selection process is an often-cited recommendation to increase diversity among candidates in other fields and may also be the key in the commercial real estate receivership context.