The Water Works and Sewer Board of the City of Prichard v. Synovus Bank (Appeal from Mobile Circuit Court…

Summary

The court affirmed an interlocutory order appointing a receiver to administer and operate the Board's waterworks and sewer system. It held that the Board could contractually agree to receivership as a default remedy, but that the trial court was also required to consider the extraordinary-remedy factors under Alabama law. The court concluded that the Board's defaults, financial deficit, deteriorating infrastructure, water loss, and lack of an adequate legal remedy supported the appointment and that the trial court acted within its discretion in structuring the receiver's powers.