Judge: Michael Shultz, Case: 22CMCV00315, Date: 2023-03-10 Tentative Ruling
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Case Number: 22CMCV00315 Hearing Date: March 10, 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”) allegedly holds a deed
of trust recorded on March 18, 2021. Plaintiffs allege that Defendant, Deana
Patrick (“Patrick”) has created a public nuisance by erecting unpermitted
facilities on the premises. 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 this
petition on December 9, 2022, for the court to appoint a receiver and to
require reimbursement to the receiver for the costs to correct the described
violations on the real property. The City requests an order permitting 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. City filed notice that Patrick did not file an
opposition.
The Court heard the petition on
February 2, 2023, however, the Court granted Plaintiffs’ request to continue
the hearing to allow Defendant to respond. (M.O. 2/2/23). The
Court’s file does not reflect that Defendant subsequently filed a written
response.
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). 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. 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. (Decl
of Mark Adams, ¶ 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. (Health & Saf. Code, § 17980.7(c)(4)). 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.