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34-812: The 61-building medical complex was built in response to two federal class action civil rights lawsuits ( Plata v. Schwarzenegger and Coleman v. Schwarzenegger ), after which a federal court in Sacramento ruled that the California Department of Corrections and Rehabilitation 's medical and mental health services violated the Eighth Amendment to the United States Constitution 's prohibition on cruel and unusual punishment . The facility cost $ 839 million to construct and employs approximately 4,000 custody, medical and support staff. Facilities include

68-754: A state of emergency . Following the Governor's issuance of the State of Emergency Proclamation, the plaintiffs in Plata and Coleman filed motions to convene a three-judge court to limit the prison population. During the pending motions, the Little Hoover Commission released its report titled "Solving California's Corrections Crisis: Time Is Running Out" and the CDCR Expert Panel on Adult Offender Recidivism Reduction Programming released its report , both advocating

102-409: A creditor can enforce security against a company's assets in an effort to obtain repayment of the secured debt. It used to be the most popular method of enforcement by secured creditors , but recent legislative reform in many jurisdictions has reduced its significance considerably in certain countries. Administrative receivership differs from simple receivership in that an administrative receiver

136-555: A diagnostic center, dental clinic, dialysis clinic, memory care center, and palliative care unit. CHCF provides both inpatient and outpatient medical and mental health treatment. As of April 30, 2020, CHCF was incarcerating people at 93.2% of its design capacity, with 2,751 occupants. In March of 2019, CDCR confirmed a patient who had been incarcerated at CHCF and died tested positive after death for Legionnaires' disease . After additional testing of patients with pneumonia, one additional patient tested positive for Legionnaires' disease and

170-425: A plan on September 18, 2009, but the plan failed to meet requirements set by the release order. On October 21, 2009, the court rejected the plan, and gave the government until November 12 to submit a corrected plan or it would order the attorneys for the plaintiffs to submit a plan and order it implemented. The state submitted a revised plan on November 12, 2009, and the plan was accepted and entered as an order of

204-568: A receivership scheme for the administration, by the insurance commissioner, of insurance companies found to be insolvent as set forth in the NAIC's Insurer Receivership Model Act." Some organizations have come into existence on the state level to alter the proceedings. An example is the California Receivers Forum, which is a non-profit organization "formed by interested receivers, attorneys, accountants, and property managers, with support from

238-544: A reduction in prison overcrowding . On July 23, 2007, both the Plata and Coleman courts granted the plaintiff's motions and recommended that the cases be assigned to the same three-judge court. The Chief Judge of the United States Court of Appeals for the Ninth Circuit agreed and, on July 26, 2007, convened the instant three-judge district court pursuant to 28 U.S.C.   § 2284 . On August 4, 2009,

272-404: A remedy of last resort in litigation involving the conduct of executive agencies that fail to comply with constitutional or statutory obligations to populations that rely on those agencies for their basic human rights . Receiverships can be broadly divided into two types: Receiverships relating to insolvency are subdivided into two further categories: administrative/equity receivership, where

306-406: A situation likely to remain common for some years. Enforcement is also a significant aspect of the situations where administrative receivership is still permitted; for example, the ability to take control of the entirety of the assets is important in structuring insolvency-remote special purpose companies that issue securities or operate infrastructure projects. In common law jurisdictions outside of

340-440: A very powerful remedy, but it came to be considered unsatisfactory in that it was entirely a creature of the contract between the creditor and the borrower. There was no general ability on the part of the borrower or any other party to review the actions of the receiver (who would generally be acting on behalf of the borrower under the security document) or seek the supervision of the court. A general review of UK insolvency law in

374-547: Is a situation in which an institution or enterprise is held by a receiver – a person "placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights" – especially in cases where a company cannot meet its financial obligations and is said to be insolvent . The receivership remedy is an equitable remedy that emerged in the English chancery courts , where receivers were appointed to protect real property. Receiverships are also

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408-411: Is an accountant with considerable experience of insolvency matters. The common law has long recognised the concept of a receiver. Following development of the floating charge , creditors were effectively able to take security over a company's entire business by means of a floating charge over the undertaking. Security documents generally contained very wide powers of appointment such that on default

442-442: Is appointed over all of the assets and undertakings of the company. This means that an administrative receiver can normally only be appointed by the holder of a floating charge . Because of this unusual role, insolvency legislation usually grants wider powers to administrative receivers, but also controls the exercise of those powers to try to mitigate potential prejudice to unsecured creditors . Typically, an administrative receiver

476-581: The Enterprise Act 2002 . The administration regime was changed to make it more attractive, but also barred the right to appoint administrative receivers in any security created after 15 September 2003 (subject to certain specific exceptions). Any attempt to do so takes effect as a power to appoint an administrator. Administrative receivership still forms part of modern insolvency practice. Companies that get into financial difficulty today may well have security packages that were created before 15 September 2003,

510-582: The Eighth Amendment , the Americans with Disabilities Act , and section 504 of the Rehabilitation Act of 1973 . As a result of the case, the CDCR's prison medical conditions were found to be in violation of the Eighth Amendment to the United States Constitution . After repeated violations of a stipulated agreement and order for injunctive relief, the CDCR was held in civil contempt and the medical health care system

544-574: The Federal Housing Finance Agency (FHFA) for government-sponsored enterprises (GSEs) such as Fannie Mae , Freddie Mac , and the 11 Federal Home Loan Banks . Most individual states also have granted receivership authority to their own bank regulatory agencies and insurance regulators. State Insurance Departments are accredited by the National Association of Insurance Commissioners (NAIC)—which states, "State law should set forth

578-528: The Los Angeles Superior Court , to address the needs and concerns of receivers, to facilitate communication between the receivership community and the courts, and to assist in raising the level of professionalism of receivers..." The California Receivers Forum reports five local affiliates in the state: Bay Area, Central California, LA/Orange County, Sacramento Valley and San Diego. Court-appointed receivers are "the most powerful and independent of

612-829: The 1980s began with the Cork Report and culminated in the Insolvency Act 1986 . It put forward two major reforms. First, it put the receiver and manager on a statutory footing: a receiver appointed to all or substantially all of a company's property was now an administrative receiver and subject to some statutory responsibilities. Second, it introduced an " administration order " as an equivalent process to administrative receivership – but available to any company by court order independent of any particular security arrangement. The UK Parliament expected that companies and creditors would use administration in preference to administrative receivership. Crucially, however, Parliament had conceded in

646-678: The CDCR's medical health care delivery system in receivership . The receivership went into effect in April 2006. 18 U.S.C.   § 3626 , a statute created by the Violent Crime Control and Law Enforcement Act and further amended by the Prison Litigation Reform Act , sets forth remedies with respect to prison conditions. On October 4, 2006, the Governor Schwarzenegger issued Proclamation 4278 , declaring

680-490: The Insolvency Act that administrative receivership should have priority – that is, a secured creditor with a floating charge could defeat any attempt to commence an administration by appointing an administrative receiver. As a result, administration was not as popular as lawmakers had envisaged, and secured creditors habitually appointed administrative receivers to enforce security rights. Parliament took more drastic action in

714-503: The United Kingdom, administrative receivership remains popular. A number of offshore jurisdictions market transaction structures to banks on the basis that they still retain the freedom to appoint administrative receivers in those jurisdictions. Because of their unique role, insolvency legislation usually confers wide powers on administrative receivers under applicable insolvency law, which is usually concurrent with powers granted under

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748-548: The court on January 12, 2010. California appealed the order to the Supreme Court on January 19, 2010, and the Court postponed jurisdictional questions relating to the appeal on June 14, 2010. It was argued on November 30, 2010. On May 23, 2011, the Court issued an opinion, Brown v. Plata , No. 09-1233, written by Justice Kennedy . The Court held (1) The three-judge court limits on the prison population were necessary to remedy

782-401: The creditor could take over the business immediately and without the input of any court. A receiver appointed to the entire business became known as a receiver and manager . The receiver and manager would typically have extensive powers over the business, including the power to sell it at a time and on terms that suited the appointing creditor. The ability to appoint a receiver and manager was

816-673: The document(s) underlying his appointment" – i.e., a statute , financing agreement, or court order . The receiver may: Several regulatory entities have been granted power by the Congress to place banking and financial institutions into receivership like the Office of the Comptroller of the Currency for failing nationally chartered commercial banks ; the Office of Thrift Supervision for failing savings and loan associations (thrift institutions); and

850-460: The failure of the administrative grievance system to provide timely or adequate responses to complaints concerning medical care. The claims alleged that patients being treated by the CDCR received inadequate medical care that resulted in the deaths of 34 incarcerated patients. The plaintiffs and defendants negotiated a stipulation for injunctive relief , which the court approved by court order on June 13, 2002, requiring defendants to provide "only

884-426: The interference of custodial staff with the provision of medical care; the failure to recruit and retain sufficient numbers of competent medical staff; disorganized and incomplete medical records; a "lack of quality control procedures, including lack of physician peer review, quality assurance and death reviews"; a lack of protocols to deal with chronic illnesses, including diabetes, heart disease, hepatitis, and HIV; and

918-424: The judicially appointed managers." Unlike special masters and monitors, "the receiver completely displaces the defendants: the receiver makes large and small decisions, spends the organization's funds, and controls hiring and firing determinations." Examples of court-appointed receivers include: Administrative receivership is a procedure in the United Kingdom and certain other common law jurisdictions whereby

952-551: The minimum level of medical care required under the Eighth Amendment." However, three years after approving the stipulation as an order of the court, the court conducted an evidentiary hearing that revealed the continued existence of appalling conditions arising from defendants' failure to provide adequate medical care to incarcerated Californians. As a result, the court ruled in June 2005 and issued an order on October 3, 2005, putting

986-434: The receiver is granted wide management powers over all or most of the property of a business, and other receiverships (sometimes misleadingly called fixed charge receiverships ) where the receiver has limited control over specific property, with no broader powers beyond managing or selling the individual asset. Receivers are appointed by either a government regulator, privately, or a court. The receiver's powers "flow from

1020-416: The takeover by a receiver, citing the billions in costs that would have to be incurred to build new medical facilities for prisoners. In March 2009, the court-appointed receiver filed a contempt order against Schwarzenegger and California State Controller John Chiang for the refusal to turn over $ 250 million needed to rehabilitate existing medical facilities. Receivership In law , receivership

1054-535: The three-judge court ordered that the defendants submit a plan within 45 days detailing "a population reduction plan that will in no more than two years reduce the population of the CDCR's adult institutions to 137.5% of their combined design capacity." The panel argued that substantial numbers of those in prison could be released without affecting public safety, through such measures as parole reform, community treatment of non-violent prisoners and release of inmates who have demonstrated good behavior. The state submitted

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1088-519: The violation of prisoners' constitutional rights and were authorized by the Prison Litigation Reform Act (PLRA); (2) The three-judge court's order, subject to the State's right to seek its modification in appropriate circumstances, must be affirmed. Justice Scalia wrote a dissenting opinion, to which Justice Thomas joined. Justice Alito wrote a dissenting opinion, to which Justice Roberts joined. Governor of California Arnold Schwarzenegger and California Attorney General Jerry Brown opposed

1122-692: Was placed in receivership . The case was consolidated with Coleman v. Schwarzenegger and assigned to a three-judge court on July 26, 2007, to hear motions for relief pursuant to the Prison Litigation Reform Act . An order to reduce the prison population was entered on January 12, 2010, which California claims is unconstitutional in its appeal before the Supreme Court . The case was filed on April 5, 2001, and re-filed with an amended complaint on August 20, 2001. The alleged deficiencies included inadequate medical screening of incoming prisoners; delays in or failure to provide access to medical care, including specialist care; untimely responses to medical emergencies;

1156-466: Was treated at the facility. In response to the outbreak, CHCF temporarily shut off some water access, including showers, and instead provided bottled water for drinking and hygiene. Plata v. Schwarzenegger Plata v. Newsom , Docket No. 4:01-cv-01351-JST ( N.D. Cal. ), is a federal class action civil rights lawsuit alleging that the California Department of Corrections and Rehabilitation 's (CDCR) medical services are inadequate and violate

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