32.1-174.3 - Appointment of receiver for certain private waterworks; grounds for such appointment; petition and hearing, etc.
§ 32.1-174.3. Appointment of receiver for certain private waterworks; groundsfor such appointment; petition and hearing, etc.
A. In addition to the remedies provided in § 32.1-27 and this chapter forcivil and criminal penalties and injunctive or other relief, the Commissionermay petition the circuit court for the jurisdiction in which any privatewaterworks is located for the appointment of a receiver for such waterworksin accordance with the provisions of this section. Such petition may be filedat any time that the Commissioner finds that the waterworks is unable orunwilling to provide adequate and safe service for any of the followingreasons:
1. The waterworks can no longer be depended upon to furnish pure water;
2. The waterworks has inadequate capacity to furnish pure water to itscustomers;
3. The owner has failed to comply with an order issued by the Commissioner;
4. The owner has abandoned the waterworks and has discontinued supplying purewater to his customers;
5. The owner is subject to a forfeiture order pursuant to § 32.1-174.1; or
6. The Commissioner has issued an emergency order because there is animminent danger to the public health and welfare resulting from the operationof the waterworks or the source of the water supply.
B. Upon the filing of a petition for appointment of a receiver for a privatewaterworks, the court shall hold a hearing within 10 days, at which time theCommissioner and the owner of the waterworks may present evidence. The courtmay grant the petition if it finds any one or more of the conditionsidentified in subsection A and the court further finds that the conditionswill not be remedied and that the health and welfare of the owner's customerswill not be protected unless the petition is granted.
C. Upon appointment the receiver shall take possession of the assets of thewaterworks and shall operate the waterworks in the best interests of thecustomers. The receiver shall have such powers and duties to operate andmanage the waterworks as the court may grant and direct, including the filingof such reports as the court may direct and the power to receive, conserve,protect, and disburse funds; further, the provisions of Article 1 (§ 8.01-582et seq.) of Chapter 22 of Title 8.01 shall apply, mutatis mutandis.
The court may grant injunctive relief as it deems appropriate to theCommissioner or the receiver either in conjunction with or subsequent to thegranting of a petition for appointment of a receiver under this section.
D. Control of and responsibility for the waterworks shall remain in thereceivership until the waterworks can, in the best interest of the customers,be returned to the owner, transferred to a new owner, or otherwise configuredas the court may determine to be in the best interests of the public and thecustomers.
E. The court may terminate the receivership on the motion of theCommissioner, the receiver, or the owner, upon finding, after a hearing, thatthe conditions initiating the petition for the appointment of a receiver havebeen eliminated or resolved. Within 30 days after such termination, thereceiver shall file a complete report of his activities with the court,including an accounting for all property of which he took possession and allfunds collected.
A receiver appointed pursuant to this section shall be an officer of thecourt, shall not be liable for the conditions of the waterworks that existedprior to his receivership, and shall not be personally liable, except for hisown gross negligence or intentional acts, to injuries or damage to propertyrelating to the waterworks during his receivership.
This subsection shall not, however, be construed to relieve any owner of anyduty imposed by law or of any civil or criminal liability incurred by reasonsof any act or omission of such owner.
(2003, c. 458.)