Judge: John C. Gastelum, Case: "Satyam1050OrangeDriveLLCvs.SaiRamInvestments,LLC", Date: 2023-01-05 Tentative Ruling

Motion to Appoint Receiver

Off Calendar – no hearing will be held.  Plaintiff Satyam 1050 Orange Drive LLC (“Plaintiff”) moves for an order appointing Trigild Property Management, LLC (“Trigild”) as receiver of (1) the real property the real property commonly known as 1050 Orange Dr., Vacaville, CA 95687, which is improved with a hotel known as the Quality Inn & Suites Vacaville (the “Vacaville Property”), and (2) the real property commonly known as 1510 N. 1st Street, San Jose CA 95112, which is improved with a hotel known as the Comfort Suites San Jose Airport (the “San Jose Property,” and together with the Vacaville Property, the “Properties”) in order for the receiver to (a) take possession of, protect, and conserve the Properties, including operation of the hotel businesses (“Hotels”) operated on the Properties; (b) take control of all accounts relating to the Properties and Hotels; (c) collect any and all rents or other income arising from or related to the operation of the Hotels on the Properties; (d) take necessary steps in the normal course of business; and (e) perform other duties as required by the Court.  The unopposed Motion is GRANTED.

The Deeds of Trust and Assignments of Rents expressly provide that Plaintiff may, upon default, have a receiver appointed to preserve the properties at issue and collect rent.  The Declaration of Pravin Pranav, Plaintiff’s manager, establishes that Defendants are in default and have failed to pay required property taxes, forcing Plaintiff to pay those taxes to protect its interests.  Furthermore, the Code of Civil Procedure supports the appointment of a receiver.  Section 564(b)(11) provides that a receiver may be appointed by the court in an action by a secured lender for specific performance of an assignment of rents provision in a deed of trust.

Plaintiff requests the appointment of Trigild.  The Declaration of Kevin E. Berry, Trigild’s Vice President, establishes that Trigild is qualified to act as receiver. Thus, the Court GRANTS the request for appointment of Trigild.  Pursuant to Code of Civil Procedure section 567, Trigild shall be sworn to perform its duties faithfully.  Trigild is ordered to post a bond in the sum of $5000.

Moving party to give notice.