Judge: Latrice A. G. Byrdsong, Case: 20STCP01811, Date: 2024-05-14 Tentative Ruling

Case Number: 20STCP01811    Hearing Date: May 14, 2024    Dept: 25

Hearing Date:                         Tuesday, May 14, 2024

Case Name:                             JASON EHLERS, an individual v. O HOTEL GROUP INC, a corporation

Case No.:                                20STCP01811

Motion:                                   Motion for Order to Appoint Michael Brewer as Receiver

Moving Party:                         Assignee State of California Labor Commissioner

Responding Party:                   None

Notice:                                    OK

Tentative Ruling:                    Assignee State of California Labor Commissioner’s Motion to Appoint Michael Brewer as Receiver to Sell Judgment Debtor’s Interest in Its ABC Liquor License number 431450 to Enforce and Satisfy the Judgment is GRANTED.

Counsel for Judgment Creditor is ordered to electronically submit a proposed form of order within 5-court days of this Court’s ruling.

BACKGROUND

On June 2, 2020, Plaintiff Jason Ehlers (“Plaintiff”) filed a petition requesting that the clerk of the court enter judgment on final order of the Labor Commissioner.  The total judgment amount equated to $16,875.55 against the judgment debtor O Hotel Group, Inc.

On June 16, 2020, Plaintiff assigned and transferred his money judgment to the Labor Commissioner of the State of California (“Assignee”).

On April 17, 2024, Assignee filed the instant Motion to Appoint a Receiver to Sell Judgment Debtor’s Interest in his Liquor License to Enforce the Judgment.

MOVING PARTY POSITION

            Assignee contends that it has attempted through conventional means to enforce the judgment against the judgment debtor but the judgment has yet to be satisfied. (Choi Decl. ¶¶ 8-10.) Thus, Assignee seeks the appointment of a receiver in order to transfer the judgment debtor’s liquor license. Assignee contends that there is good cause in this request because it is the only way to enforce the judgment, and it asserts that it is unaware of any other claims or taxes. (Choi Decl. ¶ 11.) Moreover, by satisfying the judgment, the judgment debtor would be permitted to conduct business. Furthermore, Assignee contends that there are no other methods of enforcing the judgment. Lastly, Assignee asserts that its chosen receiver, Michael Brewer, is qualified to conduct the sale based on his years of experience.

OPPOSITION

            No opposition filed as of May 9, 2024.

REPLY

            No reply has been filed as of May 9, 2024

ANALYSIS

I.          Motion to Appoint Receiver

A.        Legal Standard

A receiver may be appointed by the Court in which an action or proceeding is pending after judgment, to carry the judgment into effect. Code Civ. Proc. § 564(b)(3).  The judgment debtor’s interest in an alcoholic beverage license may be applied to the satisfaction of a money judgment only as provided in this section.  Code Civ. Proc. § 708.630(a).  “The court may appoint a receiver for the purpose of transferring the judgment debtor's interest in an alcoholic beverage license that is transferable under Article 5 (commencing with Section 24070) of Chapter 6 of Division 9 of the Business and Professions Code….”  Code Civ. Proc. § 708.630(b).

B.        Merits

Assignee asserts that its attempts to enforce the judgment for Labor Code violations against the judgment debtor through conventional procedures have been unsuccessful.  Choi Decl. ¶¶ 8-10. Furthermore, there are no other claims of creditors with priority over the Assignee. Id. at ¶ 11; Code Civ. Proc. § 708.630(b).  Moreover, the judgment debtor has attempted to avoid liability by having its principal incorporate different corporate entities.  Id.at ¶¶ 5-6, 9.  Thus, the requested relief is necessary and reasonable under the circumstances.  Code Civ. Proc. § 708.620.  Based on the statutory authorities cited by Assignee, the Court finds that the request for an appointment of a receiver to obtain Judgment Debtor’s interest in its liquor license is authorized and appropriate under the circumstances. As to Assignee’s chosen receiver, the Court finds that the appointment of Michael Brewer is reasonable based on his extensive experience as a professional liquor license broker.  Brewer Decl. ¶¶ 2-4, 8.

III.       Conclusion

            Based on the foregoing, Assignee’s Motion to Appoint Michael Brewer as a Receiver to Sell Judgment Debtor’s Interest in Its ABC Liquor License number 431450 to Enforce and Satisfy the Judgment is GRANTED.

Counsel for Judgment Creditor is ordered to electronically submit a proposed form of order within 5-court days of this Court’s ruling.

            Moving party is ordered to give notice.