Judge: Michael Shultz, Case: 22CMCV00315, Date: 2023-02-02 Tentative Ruling
Case Number: 22CMCV00315 Hearing Date: February 2, 2023 Dept: A
22CMCV00315
People of the State of California, City of Carson v. Deana Patrick
[TENTATIVE] ORDER
I.
BACKGROUND
The complaint, filed on September
9, 2022, alleges that Defendant owns a single-family residence in the City of
Carson. SchoolsFirst Federal Credit Union (Real Party) is the real party in
interest as it holds a deed of trust recorded on March 18, 2021. Plaintiffs
allege that Defendant has created a public nuisance by erecting an electrical
vehicle charging station although Defendant’s permits had expired. Defendant
also built unpermitted installation of drywall in the garage and unpermitted
electrical and plumbing facilities. Plaintiffs allege claims for public
nuisance, for appointment of a receiver, and for declaratory and injunctive
relief.
Real Party filed its answer on
October 12, 2022. Defendant Patrick filed a general denial on October 27, 2022.
II.
ARGUMENTS
The City of Carson (City) filed its
motion on December 9, 2022, for the court to appoint a receiver, to require
reimbursement to the receiver for the costs to correct the described violations
occurring on the real property. The City asks the court to permit the receiver
to fund an initial $25,000 Certificate of Indebtedness with super priority
status to cover the costs of securing, preserving, and maintaining the property
as the receiver deems necessary. The
Court’s docket does not reflect that any opposition has been filed.
III.
DISCUSSION
The
court can appoint a receiver to generally do such acts respecting real property
as authorized by the court. Code Civ. Proc., § 568. Where the owner fails to comply
within a reasonable time with the terms of the City’s notice to abate, the Plaintiffs
may seek a court order appointing a receiver for the substandard building.
Health & Saf. Code, § 17980.7 (c). In its petition to the court, the City “shall
include proof that notice of the petition was posted in a prominent place on
the substandard building and mailed first-class mail to all persons with a
recorded interest in the real property upon which the substandard building
exists not less than three days prior to filing the petition. The petition
shall be served on the owner pursuant to Article 3 (commencing with Section
415.10) of Chapter 4 of Title 5 of Part 2 of the Code of Civil Procedure
Id.
The
City gave Defendant notice of the criminal violations occurring on the property
on October 1, 2021, and October 12, 2021. Declaration of Isaac Young, ¶¶ 3-4,
Ex. E and F. Plaintiffs posted on the property a notice to abate on July 28,
2022 and sent a letter requiring abatement within three days of a certified
letter sent on December 1, 2022 directed to Defendant and Real Party. Id.,
Ex. G, H. Defendant failed to abate the conditions within the time allowed. Id.,
¶ 5. The City gave notice of its intent to seek appointment of a receiver. Id.,
Ex. H.
The
City’s evidence demonstrates that the owner and Real Party have been afforded a
reasonable opportunity to correct the conditions cited in the notice of
violations. Health & Saf. Code, § 17980.7(c)(1). The court shall not appoint any
person as a receiver “unless the person has demonstrated to the court their
capacity and expertise to develop and supervise a viable financial and construction
plan for the satisfactory rehabilitation of the building. … ." Id.
§ 17980.7 subd. (c)(2).
The
City submits the Declaration of Mark Adams, President of the California
Receivership Group, Inc. He has been appointed receiver by 162 different
California Superior Court judge and one federal court judge and has overseen
the rehabilitation of approximately 1,332 properties throughout the state. Id.
¶ 2, Ex. I.
The
receiver is required to give an oath and post an undertaking as directed by the
court. Code Civ. Proc., § 567. City proposes to file a bond in the
amount of $10,000. Petition, 2:12-14. The powers of a receiver are governed by
Section 17980.7 subd. (c)(4) and includes the power to take full and complete
control of the property; manage the building; pay expenses, including taxes,
insurance, utilities, general maintenance, and debt secured by an interest in
real property; to secure a cost estimate and construction plan for the
necessary repairs; enter into contracts and collect all rents and income and to
use such income for the cost of rehabilitation. Id. The City requests that the Defendants be
enjoined and prohibited from doing any acts to encumber or transfer all or any
portion of the property during the receivership period, as permitted by Section
17980.7(c).
IV.
CONCLUSION
Based
on the foregoing, the court GRANTS the petition as set forth in the proposed
order submitted on December 9, 2022. The court sets a hearing for
_____________________ at 8:30 a.m. in Department A of the Compton courthouse
for the receiver, Mark Adams, to submit a Rehabilitation Plan, cost estimates,
and recommendations to the court for approval.