Superior Court of California 

County of Los Angeles – West District  

Beverly Hills Courthouse / Department 205 

 

 

BACKGROUND 

On March 24, 2022, this Court entered an order appointing a receiver pursuant to California Health & Safety Code §§ 17910 et seq. to take custody and control of the property located at 1119 Coldwater Canyon Drive, Beverly Hills, California 90210 (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.   

Thereafter, the Court entered an order authorizing the Receiver to sell the Property to pay the outstanding costs of remediation and administration (the “Sale Order”).  Following the sale of the Property, the Receiver filed a Final Report and Account, at which time he recommended that this Court authorize him to disburse the remaining estate funds to Joel Rosner (“Rosner”), as the Trustee for both the Rosner Survivor’s Trust and the Rosner Residuary Trust.  

After the Court approved payments of the final costs and fees of the Receiver’s office, the professionals he retained, and the City of Beverly Hills, a total of $594,824.63 remains in the Receivership Estate bank account.  The Receiver instructed the Receivership Administrator to contact Rosner via email and telephone.  The Receivership Administrator made numerous attempts to contact Rosner, but Rosner failed to respond.  The Receivership Administrator then visited Rosner’s last known addresses and contacted any individuals who knew him and/or had prior contact. The Receivership Administrator was informed that Rosner is deceased.   

Substantial efforts were then made to identify Rosner’s heirs, including beneficiaries of the Rosner Survivor’s Trust and Rosner Residuary Trust, by conducting thorough searches of public records, contacting potential relatives, and visiting Rosner’s last known addresses.  Despite these efforts, no conclusive information about the identities of legitimate claimants to Rosner’s estate or trust beneficiaries could be found.  

Due to the lack of identifiable heirs or others entitled to the proceeds, in accordance with Code Civ. Proc. § 570, the Receiver’s office published a notice in the Los Angeles Daily Journal once a week for four consecutive weeks setting forth Rosner’s name, residence, and the amount of the unclaimed funds.  Following the date of the last publication issued on October 23, 2024, the funds have remained unclaimed for approximately 30 days.  

Since this Court discharged the Receiver and approved his fees and costs through May 6, 2024, the Receiver’s office has incurred $23,744.50 in legal fees and $1,180.67 in costs in his efforts to identify the rightful heirs or legitimate claimants to the remaining estate funds, including the cost of publication in the Los Angeles Daily Journal for the consecutive weeks of October 2, October 9, October 16, and October 23, 2024.  

This hearing is on the Receiver’s motion for an order authorizing the Receiver (1) to escheat the remaining estate funds to the California Department of Treasury; and (2) to pay, from the unclaimed funds, the fees, costs, and expenses connected with the Receiver’s efforts to locate Rosner or legitimate claimants or heirs, including the costs of publication, totaling $24,925.17. 

DISCUSSION 

A receiver’s powers in any particular action are established by statute, the appointment order, and the court’s subsequent orders. (Cal-American Income Property Fund VII v. Brown Dev. Corp. (1982) 138 Cal.App.3d 268, 273.)  Here, Code Civ. Proc. § 570 provides that, if the receiver is holding funds belonging to a person whose whereabouts are unknown, the Court must order the Receiver to escheat the unclaimed funds to the California Department of Treasury: “Before a receiver is discharged, he or she must surrender to the state all undisbursed funds…belonging to persons whose whereabouts are unknown.” (See 1 Cal. Jur. 3d Abandoned Property § 71.)   

In this case, the Court directed the Receiver to distribute all remaining estate funds in his custody to Rosner at the conclusion of this case.  The Receiver is in custody of $594,837.97, which is currently being held in the Receivership Estate bank account.  After the Receiver was informed that Rosner is deceased, he expended substantial efforts to identify Rosner’s heirs, including beneficiaries of the Rosner Survivor’s Trust and Rosner Residuary Trust, but no conclusive information about legitimate claimants to Rosner’s estate or trust beneficiaries could be found.  

Given that the estate funds remain unclaimed, and the rightful owners cannot be located despite diligent efforts, the Court authorizes the Receiver to escheat the remaining estate funds to the California Department of Treasury. This will ensure that the State will assume appropriate custody of the escheated funds for safekeeping, allowing the Receiver to conclude his duties.  

The Receiver also seeks an order to pay his post-discharge fees and costs.  Code Civ. Proc. § 570 provides that all costs and expenses associated with the advertising required by the section shall be paid from the funds whose owners are unknown. (See Code Civ. Proc. § 570.) Here, the Receiver’s office complied with the statute by publishing a notice in the Los Angeles Daily Journal once a week for four consecutive weeks, from October 2 to October 23, 2024. Despite the publication of the notices, no claims were made within the subsequent 30 days following the date of the last publication.  

The Receiver’s office has incurred from May 7, 2024 through the date of filing this motion, $23,744.50 in legal fees and $1,180.67 in costs in his efforts to identify the rightful heirs or legitimate claimants to the remaining Estate funds.  The Court concludes these fees and costs are reasonable and authorizes the payment of the Receiver’s post discharge fees and costs, totaling $24,925.17 from the unclaimed funds currently held in the Receivership bank account. 

CONCLUSION 

Based on the foregoing, the Court GRANTS the Receiver’s motion for issuance of an order authorizing the Receiver (1) to escheat the remaining funds in the Receivership bank account to the California Department of Treasury, and (2) to pay the Receiver’s fees and costs of $24,925.17 from the remaining funds.   

  

IT IS SO ORDERED. 

 

DATED: December 18, 2024 ___________________________ 

Edward B. Moreton, Jr. 

Judge of the Superior Court