Judge: Lee W. Tsao, Case: 22NWCV01193, Date: 2023-05-24 Tentative Ruling

Case Number: 22NWCV01193    Hearing Date: December 12, 2023    Dept: C

City of Huntington Park v. The Testate And Intestate Successors of Barbara S. Brym

Case No: 22NWCV01193

Hearing Date: 12/12/23 @ 9:30am

#2

Tentative Ruling

The application is GRANTED as follows:

I.             Approval and settling of receiver’s final report and account;

II.            Approving And Settling Final Compensation and Reimbursement of Costs For Receiver And Receiver’s Professionals;

III.          Directing Transfer of Remaining Receivership Estate Funds to Brenda Depew, Administrator of The Estate of Barbara Brym-Kulatti;

IV.         Terminating Receivership and Discharging Receiver from Any Further Duties or Responsibilities;

V.           Approving All of Receiver’s Contracts and Actions as Proper And Being In The Best Interests Of The Receivership Estate;

VI.         Retaining Jurisdiction Over Any Matters or Claims Which May Arise Concerning the Receivership; and

VII.        Authorizing Receiver to Discard All Files and Records Regarding the Receivership Without Shredding Them

No Opposition filed as of December 8, 2023.

Background

Through this action, filed 11/02/22, City of Huntington Park (Plaintiff) seeks to abate a public nuisance at a real property located at 6803 Malabar Street, in the City of Huntington Park, County of Los Angeles ("Subject Property").

On 1/31/2023, the Court Granted Plaintiff’s application for appointment of a receiver and appointed Blake Alsbrook (Receiver).  On 5/24/23 the Receiver requested an order authorizing and confirming sale of the Subject Property, which the Court granted.

Receiver’s motion for approval of final report and fee applications is presently before the Court.  This motion is unopposed.  

Applicable Law 

A receiver must present by noticed motion or stipulation of all parties: (1) A final account and report; (2) A request for the discharge; and (3) A request for exoneration of the receiver's surety.  (CRC 3.1184(a).)  Notice of the motion or of the stipulation must be given to every person or entity known to the receiver to have a substantial, unsatisfied claim that will be affected by the order or stipulation, whether or not the person or entity is a party to the action or has appeared in it.  (CRC 3.1184(c).)

The owner, the mortgagee, or any lienor of record may apply for the discharge of all moneys not used by the receiver for removal of the condition and all other costs authorized by this section.  (Health & Safety Code §¿17980.7(c)(9).)  Any objections must be brought at the discharge hearing, otherwise they are waived.  (Aviation Brake Systems, Ltd. v. Voorhis (1982) 133 Cal.App.3d 230, 232, 235.) 

The compensation to be allowed a receiver is primarily within the trial court's discretion.  (Melikian v. Aquila, Ltd. (1998) 63 Cal.App.4th 1364, 1368.)   

Discussion 

On November 17, 2023, the Receiver filed his oath, and on November 18, 2023, he posted his bond, and thereafter, immediately took control of the Property. The Receiver instructed the Receivership Administrator to begin removing trespassers, and began to communicate with brokers and general contractors to coordinate an initial inspection. (Alsbrook Decl. ¶ 4.) Pursuant to the Appointment Order, the Receiver also obtained an advance of funds in the amount of $40,000.00 from Silberpal Enterprises, LLC, at ten percent (10%) per annum with a loan fee of three percent (3%) payable upon funding. On December 19, 2023, the Receiver recorded the First Certificate of Indebtedness in the Official Records of the Recorder's Office of Los Angeles County (Document No. 20230033736). (Alsbrook Decl. ¶ 5.) In January 2023, the Receiver oversaw the solicitation of competitive bids for the rehabilitation work on the Property. As was necessary, the Receiver filed an ex parte application to seek authority to demolish the Property, borrow funds, and retain a real estate broker. (Alsbrook Decl. ¶ 7.)

In March 2023, the Receiver retained Adam Orozco of Compass as his real estate broker to assist with marketing and selling the Property. The Receiver instructed Mr. Orozco to list the Property for sale, and subsequently, the Receiver received five purchase offers between $320,000.00 and $425,000.00. One of the offers the Receiver received was from Raul Echemendia ("Buyer") for $425,000.00. (Alsbrook Decl. ¶ 10.) In April 2023, the Receiver submitted counteroffers to all prospective buyers, and also informed them that the sale of the Property would be subject to overbidding and court confirmation of the sale after notice and a hearing. Thereafter, the Buyer submitted a counteroffer, increasing their offer to $528,000.00, which the Receiver accepted, as it was the best and highest offer. On April 26, 2023, the Receiver filed a Motion for Issuance of Order Authorizing and Confirming Sale of Real Property (the "Sale Motion"), which was granted on May 24, 2023. (Alsbrook Decl. ¶¶  11, 13.)

Through the present motion, the Receiver alleges he incurred the following fees in connection with this matter: $78,168.34, of which $52,083.52 has been paid and $26,084.82 is due and owing in fees (Alsbrook Decl. ¶ 18; Ex. 5); the Receiver’s accountants, Dominic LoBuglio CPA, Inc., incurred a total of $6,689.20 in costs (Alsbrook Decl. ¶ 21; Ex. 6); and the disbursement of $13,059.50 to Plaintiff City of Huntington Park (the “City”) in consideration of its attorney fees and costs incurred related to this matter (Alsbrook Decl. ¶ 16).  The Court finds these fees and costs were reasonably incurred.

The revised proposed order includes $9,648.64 for code enforcement costs incurred by the City in this case. However, this is not included in the declaration and there are no supporting exhibits relating to this cost.  Thus, these costs are not awarded. 

On or around January 19, 2023, in Los Angeles Superior Court Case No. 22STPB09182, the Superior Court filed its Letters of Administration appointing Brenda Depew as the administrator of the Estate of Barbara Brym-Kulatti. (Alsbrook Decl. ¶ 8; Ex. 2.)

A receivership bank account was established in this matter on December 19, 2022, with an initial deposit of $40,000.00. As shown in that financial report, the receivership bank account holds $285,181.18 as of October 2023. (Alsbrook Decl. ¶ 22; Ex. 7.) The Receiver attests that after payment of all fees and costs of administration above, $239,347.66 will remain in the Receivership Estate bank account. The Receiver attests he believes all of the remaining funds should be disbursed to Ms. Depew as the administrator of the decedent's Estate of Barbara Brym-Kulatti. (Alsbrook Decl. ¶ 23.)

The Court GRANTS dispersal of the remaining funds to Ms. Depew as the administrator of the decedent's Estate of Barbara Brym-Kulatti.