Superior Court of California 

County of Los Angeles – West District  

Beverly Hills Courthouse / Department 205 

 

 

BACKGROUND 

On March 24, 2022, this Court appointed a receiver to take complete custody, possession and control over real property located at 1119 Coldwater Canyon Drive, Beverly Hills, California (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.) 

The Court found that the Property was dilapidated, deteriorated and abandoned and contained an accumulation of junk, trash, and debris.  (Id. at ¶¶ 1.1.1 - 1.1.4.)  Pursuant to the Court’s appointment order, the receiver was given the “powers and duties as are necessary to bring the Subject Property into full compliance with the State Housing Law, California Fire Code, Beverly Hills Municipal Code and other applicable laws and undertake all actions necessary to abate all substandard, hazardous and/or unlawful conditions at the Property.”  (Id. at ¶2.3.7.)   

In April 2022, the receiver conducted an initial inspection of the Property.  The Property was in squalid condition, and it was clear that individuals had been squatting at the Property.  The receiver instructed contractors to secure the Property by boarding and fencing it up and to begin removal of junk so that the full extent of work necessary to be completed could be determined.  (Alsbrook Decl. ¶7.)   

Later in April 2022, the receiver conducted another inspection and prepared a summary of violations to be remediated and repaired.  (Alsbrook Decl. ¶9.)  In accordance with this Court’s Order, at the end of April 2022, the receiver borrowed an initial $40,000 to begin remediating the code violations.  (Alsbrook Decl. ¶ 10.)   

In May 2022, the receiver solicited a quote from JV Construction regarding all work needed at the Property and spoke with the City of Beverly Hills (the “City”) and Code Enforcement to ensure that the proposed work would result in Code compliance.  (Alsbrook Decl. ¶11.)  The receivership administrator coordinated with contractors and oversaw maintenance of and improvements to the Property as well as security and removal of trash from the Property.  (Id.) 

In June 2022, the Court granted the receiver’s application to retain a real estate broker to list the Property for sale.  (Alsbrook Decl. ¶12.)  The receiver borrowed an additional $525,000 in order to continue remediating the Property.  (Id.) 

In July and August 2022, the receiver’s office continued to oversee inspections, repairs and improvements to the Property, including traveling to the Property regularly, meeting with general contractors, overseeing the budget and overseeing issues concerning plans, permits, landscaping, air conditioning, heating and asbestos removal.  Significant construction and improvement work was completed by the contractor over the course of the summer.  The receivership administrator also ensured the payment of bills relating to the Property and worked to remove trespassers from the Property.  (Alsbrook Decl. ¶13.)   

From September to December 2022, the receiver worked with the contractor to complete the remediation and repair of the Property, including the repair of the Property’s air conditioning and heating units.  The receiver also met with Code Enforcement and the City to oversee inspection, review any remaining deficiencies at the Property and obtain plans and permits concerning the Property.  The receiver borrowed an additional $200,000 to continue remediating the Property.   (Alsbrook Decl. ¶¶ 14-16.) 

In November 2022, the receiver retained a real estate broker to market and sell the Property.  (Alsbrook Decl. ¶ 18.)  After marketing the Property for sale, the receiver received an all-cash offer to purchase the Property for $2,800,000 from Marc Ackerman (the “Buyer”).  (Ex. Alsbrook Decl. ¶19.)  The offer was accepted on February 19, 2023, which included the Buyer’s removal of all contingencies.  On March 28, 2023, after hearing and notice, the Court granted the receiver’s motion for order authorizing the sale of the Property to Buyer, which approved and confirmed the sale of the Property to Buyer for $2.8 million, as-is, with no warranties or representations and with the payment of 3% commission to the buyer’s broker and 3% commission to the seller’s broker.  (Alsbrook Decl. ¶21.)   

During January 2023, torrential rainstorms caused a major landslide on the Property.  (Alsbrook Decl. ¶22.)  In reviewing the damage caused by the landslide, the receiver’s contractor and the City determined that two major retaining walls needed to be constructed.  (Alsbrook ¶24.)  The receiver reviewed whether the Property’s insurance would cover damages resulting from the landslide but unfortunately determined there was no coverage.  (Alsbrook Decl. ¶23.)   

In April and May 2023 2023, the receivership administrator coordinated the approval of the plans to build the retaining walls.  The administrator organized engineering reports, soil reports and plans to develop the retaining walls on the front and back slope which required working with geo-engineers.  (Alsbrook Decl. ¶25.)  In June 2023, the receiver borrowed an additional $500,000 in order to complete work on both retaining walls.  (Alsbrook Decl. ¶27.) 

Obtaining approved plans from the City was a long and demanding process, and plans were not approved until August 2023.  (Alsbrook Decl. ¶28.)  In September and October 2023, the administrator and receiver continued to oversee the construction progress of the retaining walls, in addition to obtaining permits.  (Alsbrook Decl. ¶29.)  From January 2024 to March 2024, the administrator and receiver coordinated with the general contractor regarding obtaining a certificate of occupancy and permits; coordinated with the buyer and broker on the sale, and worked with the City Officials regarding the certificate of occupancy and other permits.  (Alsbrook Decl. ¶¶ 30-33.)   

On February 23, 2024, escrow closed.  After payment of the lenders, property taxes, commissions and other necessary closing costs, $1,022,363.92 was released to the receiver.  (Alsbrook Decl. ¶34.)  After close of escrow, the receiver paid the contractor a remaining $354,940 owed for construction work, security and cleanup that was not covered with the amounts borrowed.  (Alsbrook Decl. ¶35.) 

The receiver has incurred $275,076.51 in fees and costs.  (Alsbrook Decl. ¶38.)  Of that amount, $238,663.14 has been paid pursuant to ¶2.3.15 of the Appointment Order, and $36,413.37 is due and owing.  All of the receiver’s and his office’s time has been billed at each employee’s standard hourly billing rate.  (Alsbrook Decl. ¶40.)   

The receiver retained a CPA to file documentation with the Internal Revenue Service to establish a Qualified Settlement Fund, given the owner of the Property was uncommunicative.  The CPA has now filed a final tax return for the Estate.  (Alsbrook Decl. ¶9.)  The CPA’s services were from April 2022 through February 2024 during which time he incurred $5,500 in fees.  None of these fees and costs have been paid.  (Alsbrook Decl. ¶41.)  

After the sale of the Property, the receiver asked the City to prepare and submit a declaration setting forth all of their compensable fees and costs owed in this matter, which are payable under the California Health & Safety Code.  Those fees and costs are set forth in the Declaration of Eric P. Markus.  The receiver has reviewed the fees and costs, totaling $30,901.85 and represents those fees and costs are reasonable and should be paid from the funds held in the Estate.  (Alsbrook Decl. ¶44.) 

After payment of the receiver’s unpaid fees, the CPA’s fees, and the fees and costs owed to the City, $613,976.92 will remain in the Receivership Estate bank account.  (Alsbrook Decl. ¶46.)  The receiver recommends that all of the remaining funds should be disbursed to Joel Rosner as trustee for both the Rosner Survivor’s Trust and the Rosner Residuary Trust.  (Id.) 

This hearing is on the Receiver’s motion for issuance of order (1) approving and settling receiver’s final report and account, (2) approving and settling final compensation and reimbursement of costs for receiver and receiver’s professionals, (3) directing transfer of remaining receivership funds to Joel Rosner as trustee of the Rosner Survivor’s Trust and Rosner Residuary Trust, (4) exonerating receiver’s bond, (5) terminating receivership and discharging receiver from any further duties or responsibilities, (6) retaining jurisdiction over any matters or claims which may arise concerning the receivership, and (7) authorizing receiver to discard all files and records regarding the receivership without shredding them.   

DISCUSSION 

California Rules of Court, Rule 3.1184(a) requires that a receiver present a Final Report and Account, a request for discharge, and a request for exoneration of the receiver’s bond by noticed motion when bringing a receivership to a close.  The receiver’s final report and account complies with the requirements of all relevant laws as well as those set forth in the Court’s Appointment Order.  The facts stated in the receiver’s final report and account (which are summarized in the background section of this order) supports each of the orders the receiver seeks.  Accordingly, the Court grants the receiver’s motion.   

CONCLUSION 

Based on the foregoing, the Court GRANTS the Receiver’s motion for issuance of an order (1) approving and settling receiver’s final report and account, (2) approving and settling final compensation and reimbursement of costs for receiver and receiver’s professionals, (3) directing transfer of remaining receivership funds to Joel Rosner as trustee of the Rosner Survivor’s Trust and Rosner Residuary Trust, (4) exonerating receiver’s bond, (5) terminating receivership and discharging receiver from any further duties or responsibilities, (6) retaining jurisdiction over any matters or claims which may arise concerning the receivership, and (7) authorizing receiver to discard all files and records regarding the receivership without shredding them.  The Court will sign the proposed order. 

  

IT IS SO ORDERED. 

 

DATED: June 18, 2024 ___________________________ 

Edward B. Moreton, Jr. 

Judge of the Superior Court