Superior Court of California 

County of Los Angeles – West District  

Beverly Hills Courthouse / Department 205 

 

 

MOVING PARTY: Plaintiff City of Beverly Hills 

 

RESPONDING PARTY: Defendant Joel Rosner, an individual and as trustee of the Rosner Family Trust  

 

BACKGROUND 

This hearing is on the receiver’s motion for order authorizing and confirming the sale of real property located at 1119 Coldwater Canyon Drive, Beverly Hills, California (“the Property”).  As of the posting of this tentative, there has been no opposition filed.     

On March 24, 2022, this Court appointed a receiver to take complete custody, possession and control over the Property for the purpose of remediating significant Municipal and Health and Safety Code Violations at the Property which have rendered it a nuisance to the surrounding community.  (Ex. 1 to Alsbrook Decl.) 

Thereafter, the Court granted the receiver’s application to borrow funds secured by the Property for the purpose of remediating the Property.  (Exs. 2-3 to Alsbrook Decl.)  There were severe structural issues with the Property requiring significant funds to remediate, including a landslide on the lower hillside below the Property, necessitating the construction of a major retaining wall.  (Alsbrook Decl. ¶5.) 

The Court also granted the receiver’s application to retain a real estate broker to list the Property for sale in the event the owners of the Property failed to appear and pay all outstanding costs associated with the remediation.  (Ex. 2 to Albrook Decl.).  Defendants failed to appear and the receiver contracted with a broker to list and market the Property.  (Alsbrook Decl. ¶4.)  

After marketing the Property for sale, the receiver received seven offers, ranging from $2,450,000 to $3,000,000.  The receiver had initially accepted an offer of $2,750,000.  However, the buyer opted to withdraw their offer during the 5 day contingency period.  (Alsbrook Decl. ¶4.) 

On January 28, 2023, the receiver received an all-cash offer to purchase the Property for $2,800,000.  (Ex. 4 to Alsbrook Decl.)  The offer was accepted on February 19, 2023, which included the Buyer’s removal of all contingencies.  The terms of the proposed sale include the payment of 3% commission to the buyer’s broker and 3% commission to the seller’s broker.  (Alsbrook Decl. ¶8.)   

There was also a lien on the property by the Small Business Administration (“SBA”) in the amount of $23,700, in addition to three recorded Receiver Certificates of Indebtedness used to fund the remediation of the Property, totaling $765,000.  (Exs. 9-11 to Alsbrook Decl.)  The receiver intends to pay the Receiver Certificates of Indebtedness through escrow, but not the lien in favor of the SBA, except in the event the SBA shows it has a valid present interest.  (Alsbrook Decl. ¶12.)    

The sale is subject to overbidding at the confirmation hearing pursuant to California law.  The minimum overbid is 5% plus $500 higher than the contract price and requires any overbidder to step into the shoes of the Buyer, with all contingencies waived.  Thus, the minimum starting overbid for the Property would be $2,940,500.  (Alsbrook Decl. ¶14.)   

If there is overbidding, the receiver will encourage the unsuccessful lower bidders to remain in backup positions so that he will be able to close the sale without further order of this Court if the highest bidder fails to close timely.  (Alsbrook Decl. ¶16.) 

The receiver attests the proposed sale represents the fair market value of the Property and will allow him to marshal funds for the benefit of the Receivership Estate.  (Albrook ¶17.)   

DISCUSSION 

A receiver’s powers in any particular action are established by statute, the appointment orders and the court’s subsequent orders.  (Cal-America Income Property Fund VII v. Brown Development Corp. (1982) 138 Cal.App.3d 268, 273.)   Here, the relevant statutory authority and the Court’s order authorize the sale of the Property, which will benefit the Receivership Estate.   

Code Civ. Proc. § 568.5 provides that a receiver can sell Receivership Estate real property subject to Court confirmation.  The section states “[a]receiver may, pursuant to an order of the court, sell real or personal property in the receiver’s possession[.]”  (Code Civ. Proc. § 568.5; see also Cal-America, 138 Cal.App.3d at 273 (“Code of Civil Procedure sections 568¿and¿568.5 authorize the receiver to perform such acts respecting the property as the court may authorize, including the sale of real and personal property upon notice and subject to court confirmation.”).)   

Likewise, the relevant case law provides that courts possess broad powers to authorize private or public receivership sales of real and personal property and to alter the terms of those sales as is equitable under the conditions of each case.  (People v. Riverside University (1973) 35 Cal.App.3d 572, 585; Lesser & Son v. Seymour (1950) 35 Cal.2d 494, 499.)   

This Court has specifically authorized the receiver to list the Property for sale.  (Ex. 2 to Alsbrook Decl.)  And the evidence shows that the proposed sales price represents the fair market value of the property.  (Alsbrook Decl. ¶¶ 6-7, 17.)   

CONCLUSION 

Based on the foregoing, the Court GRANTS the Receiver’s motion for issuance of order authorizing and confirming the sale of the Property.   

 

IT IS SO ORDERED. 

 

DATED: March 28, 2023 ___________________________ 

Edward B. Moreton, Jr. 

Judge of the Superior Court