Judge: Michael Shultz, Case: 21CMCV00193, Date: 2023-08-10 Tentative Ruling

Case Number: 21CMCV00193    Hearing Date: August 10, 2023    Dept: A

21CMCV00193 People of the State of California v. Benjamin Onubah, Chinelo Onubah

Thursday, August 10, 2023 at 8:30 a.m.

 

[TENTATIVE] ORDER GRANTING RECEIVER’S MOTION FOR DISCHARGE OF RECEIVER, EXONERATION OF SURETY, AND DISTRIBUTION OF PROCEEDS

 

I.        BACKGROUND

      The complaint alleges that Defendants own real property located in the City of Carson. The property was subject to ongoing and recurring violations since January 2018 for unpermitted construction, electrical, and substandard repairs by the Defendants, who have refused to address all violations. Plaintiff alleges claims for public nuisance and injunctive relief for maintaining a substandard building in violation of the Health and Safety Code.

      On January 14, 2022, the Court appointed Mark Adams as Receiver.

II.      ARGUMENTS

      The Receiver cured the substandard conditions and sold the property on June 15, 2023, by order of the Court. The title and escrow costs, broker commission, property taxes and the Receiver’s Certificate were paid through escrow. The only issue is the distribution of the remaining proceeds after reimbursing the Receiver’s unpaid fees. No opposition has been filed.

III.    DISCUSSION

      A receiver may request a discharge, provide a final account and report, and request exoneration of the Receiver’s surety. (Cal. Rules of Court, Rule 3.1184.) A memorandum of points and authorities is not required. (Id.) The power to discharge a receiver is a “necessary adjunct” to the power of appointment and is addressed to the court’s sound discretion. (Sly v. Superior Court of California (1925) 71 Cal.App. 290, 294.) The court controls the order of proof at the hearings for approval of the receiver’s account. (Macmorris Sales Corp. v. Kozak (1967) 249 Cal.App.2d 998, 1003 [“The petition, which was verified, and which contained the receiver's report and accounting in detail, constituted such evidence.”].)

      The Receiver’s declaration certifies that the Final Account and Report is accurate and is made under penalty of perjury. (Baker Decl., ¶ 4.) The Receiver sold the property for $850,098.19. After deducting all sale costs and expenses of $730,664.08, the remaining cash balance after sale was $119,434.10. The receiver will deduct $11,681 in unpaid fees and $98.18 in unreimbursed advances.

      The County of Los Angeles released its two liens for Defendant’s past due child support payments. The remaining lienholder is Nationstar Mortgage, LLC, who made a demand of $357,667.83. The receiver requests that the remaining balance be distributed to Nationstar.  

IV.    CONCLUSION

      There being no opposition and based on the foregoing, the Receiver’s motion is GRANTED. The Receivership is discharged, and the Receiver’s surety is exonerated. The balance remaining after reimbursement for the Receiver’s unpaid fees and advances is ordered distributed to Nationstar Mortgage LLC.