Judge: Mark A. Young, Case: 21SMCV01113, Date: 2022-09-09 Tentative Ruling

Case Number: 21SMCV01113    Hearing Date: September 9, 2022    Dept: M

CASE NAME:           Hankey Capital, LLC v. Crestlloyd, LLC, et al.

CASE NO.:                21SMCV01113

MOTION:                  Motion for Order Approving Receiver’s Final Account and Report.

HEARING DATE:   September 10, 2022

BACKGROUND

On July 2, 2021, the Court entered its Order for Appointment of Receiver and other related relief (the “Receivership Order”) in this case titled Hankey Capital, LLC. v. Crestlloyd, LLC, Case No. 21SMCV01113. Theodore Lanes was appointed by the Court as the receiver (the “Receiver”) to take control of the Receivership Property, including, but not limited to the real property commonly known as 944 Airole Way, Los Angeles, California 90077 (the “Airole Property”). (See also Lanes Decl., ¶ 2 Ex. 3 [Amended Order Confirming Appointment of Receiver].)

Legal Standard

            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 trial court has the discretion to fix the compensation for a receiver. (Melikian v. Aquila, Ltd. (1998) 63 Cal.App.4th 1364, 1368.) Generally, a receiver's compensation is chargeable on and is to be paid from the fund in the receiver's possession. (See Stanton v. Pratt (1941) 18 Cal.2d 599, 603 [if the fund be insufficient, “he may then look to the parties at whose instance he was appointed”].)

Analysis

            The instant motion is unopposed. The receiver provides for the receipts, disbursements and cash balance of the Receivership Estate. They have shown the services performed and the previous payments to the receiver. The receiver also requests a discharge and an exoneration of bonds. According to the proof of service, notice of this motion has been properly served to all known creditors. As such, the unopposed motion is GRANTED as requested.

The Receiver to prepare a proposed order consistent with this opinion and give notice.