Judge: Curtis A. Kin, Case: 21STCV13141, Date: 2024-04-11 Tentative Ruling

Case Number: 21STCV13141    Hearing Date: April 11, 2024    Dept: 86

MOTIONS (2) FOR APPROVAL OF RECEIVER’S

SIXTH AND SEVENTH INTERIM REQUEST FOR FEES

Date:               4/11/24 (1:30 PM)

Case:                           Sound Equity High Income Debt Fund v. Top Flight Investments LLC et al. (21STCV13141)

TENTATIVE RULING:

I.                   MOTION FOR APPROVAL OF SIXTH INTERIM REQUEST FOR FEES

Receiver Pacific Crest Realty Advisors, LLC’s UNOPPOSED Motion for Approval of Receiver’s Sixth Interim Request for Fees is GRANTED.

On February 20, 2024, the Court continued the motion because service by email was untimely. In addition, service on lien holders (1) City of Los Angeles, Department of Building and Safety, Financial Services Division and (2) County of Los Angeles, Department of the Treasurer and Tax Collector, Tax Collections Branch Secured Property Tax Division was not effectuated.  On February 23, 2024, Receiver filed an Amended Proof of Service indicating that the two aforementioned lien holders were served with the moving papers. All parties and non-parties of interest were served with notice of continuance of the hearing.

Service having been properly effectuated, the Court rules as follows:

Receiver Pacific Crest Realty Advisors, LLC moves for approval of its interim fees incurred in the performance of its duties.

Pursuant to the Order Appointing Equity Receiver and Preliminary Injunction entered on 3/17/22, Receiver is authorized to prepare “periodic interim statements reflecting the Receiver’s fees and administration of the Receivership Estate.” (3/17/22 Receiver Order ¶ 11.) Receiver is obligated to submit its fees and expenses to the Court for approval and confirmation by way of a noticed interim request for fees, a stipulation among the parties, or the Receiver’s final account and report. (3/17/22 Receiver Order ¶ 11.)

Receiver seeks approval of $57,889.50 incurred between March 2023 and June 2023.

“Interim fees are subject to final review and approval by the court. The court retains jurisdiction to award a greater or lesser amount as the full, fair, and final value of the services rendered.” (Cal. Rule of Court 3.1183(a).) “Unless good cause is shown, objections to a receiver’s interim report and accounting must be made within 10 days of notice of the report and accounting, must be specific, and must be delivered to the receiver and all parties entitled to service of the interim report and accounting.” (Cal. Rule of Court 3.1183(b).) No objections were received.

A review of the invoices received in support of the motions reveals that Receiver paid utilities and vendors; continued property management activities, including collecting rents, preserving and cleaning the sites, and tending to security measures; marketed the properties for sale; assisted in the preparation of sale motions; reviewed and responded to objections to sale of properties; managed transactions and escrow logistics; prepared financial statements; and advanced the eviction of an unlawful occupant from one of the properties. (Constantinescu Decl. ¶¶ 7-10 & Exs. 1-4; 3/17/22 Receiver Order ¶ 3(b) [“The Receiver is granted the following powers and duties…[t]o operate, manage, maintain, preserve, market, and sell the Property, and to collect revenues, security deposits, storage fees, income, issues, and profits thereof….”].) Receiver billed $295 per hour for Sidney Constantinescu, $160 per hour for accounting tasks, and $50 per hour for administrative tasks—ratees permitted in the March 17, 2022 order appointing Receiver. (3/17/22 Receiver Order ¶ 2(d).) Having reviewed the supporting declaration and invoices, the Court finds that the fees claimed by Receiver are reasonably related to the administration of the Receivership Estate.

The motion is GRANTED. The Court strikes the words “and costs” from paragraph 3 of the proposed order lodged on 1/25/24, as Receiver is not seeking costs. (Mtn. at 10, fn. 2.) The Court will sign the proposed order electronically received on 1/25/24.

II.                MOTION FOR APPROVAL OF SEVENTH INTERIM REQUEST FOR FEES

Receiver Pacific Crest Realty Advisors, LLC’s UNOPPOSED Motion for Approval of Receiver’s Seventh Interim Request for Fees is GRANTED.

Receiver seeks approval of $65,988.50 incurred between July 2023 and December 2023. No objections were received to this request.

A review of the invoices received in support of the motions reveals that Receiver paid utilities and vendors; continued property management activities, including collecting rents, conducing site inspections, preventing and mitigating vandalism, and supervising progress related to deferred maintenance; negotiated voluntary vacating of property and concurrently began legal process to force vacancy to enhance marketability of property; marketed the properties for sale; assisted in the preparation of sale motions; managed transactions and escrow logistics; prepared financial statements; and completed the eviction of an unlawful occupant from one of the properties. (Constantinescu Decl. ¶¶ 5-12 & Exs. 1-6; 3/17/22 Receiver Order ¶ 3(b) [“The Receiver is granted the following powers and duties…[t]o operate, manage, maintain, preserve, market, and sell the Property, and to collect revenues, security deposits, storage fees, income, issues, and profits thereof….”].) Receiver billed $295 per hour for Sidney Constantinescu, $160 per hour for accounting tasks, and $50 per hour for administrative tasks—rates permitted in the March 17, 2022 order appointing Receiver. (3/17/22 Receiver Order ¶ 2(d).) Having reviewed the supporting declaration and invoices, the Court finds that the fees claimed by Receiver are reasonably related to the administration of the Receivership Estate.

The motion is GRANTED. The Court strikes the words “and costs” from paragraph 3 of the proposed order lodged on 2/28/24, as Receiver is not seeking costs. (Motion at 8, fn. 2.) The Court will sign the proposed order electronically received on 2/28/24.