Judge: Michael Shultz, Case: 22CMCV00340, Date: 2023-11-02 Tentative Ruling
Case Number: 22CMCV00340 Hearing Date: February 1, 2024 Dept: A
Thursday,
February 1, 2024, at 8:30 a.m.
[TENTATIVE] ORDER APPROVING THE
RECEIVER’S FINAL REPORT AND ACCOUNT FILED NOVEMBER 22, 2023.
I.
BACKGROUND
The
complaint filed on September 28, 2022, alleges that Defendant, San Pedro Mo,
LLC, (“San Pedro”) whose manager is Mikel Haghnazarzadeh, owns real property in
San Pedro. Plaintiff alleges that Defendants are operating an unlicensed marijuana
business at the property. Plaintiff alleges claims for abatement, nuisance, for
various Code violations, and related statutory violations. On July 7, 2023, the
Court appointed Theodore Lanes as receiver (“Receiver”) to take possession of
the property and abate the nuisance.
On
November 2, 2023, the Court heard the Receiver’s motion for order (1) permitting
issuance of a reporter’s certificate, (2) to approve a listing agreement, and to
(3) authorize appointment of receiver’s counsel. The Court granted the first
and third requests and denied the second request to approve a listing agreement
until this motion could be heard. The Receiver was ordered to cease any further
work. (M.O.
filed 11/2/23.)
II.
ARGUMENTS
Defendants
contend the court should terminate the receivership since the Receiver ended the
operation of the marijuana dispensary at the property. The Receiver changed the
locks and relieved the security detail. The only issue is the presentation of
the Receiver’s invoices for the Court’s approval.
Plaintiff
contends the receivership should not be terminated because Defendants lacked
diligence in attempting to evict the tenants conducting the business since
Plaintiff issued its first citation on May 21, 2020. There is a strong
likelihood that Defendants will continue its prior unlawful use of the property
if the receivership is terminated. The Court’s electronic file does not reflect
that Defendants filed a reply brief.
III.
DISCUSSION
The
Court originally heard this motion on November 14, 2023, and GRANTED the
Defendants’ motion to terminate the receivership and ordered reimbursement of
the Receiver’s fees and costs incurred. The Court reserved Defendants’ right to
object to the final accounting of the Receiver’s report. (M.O
filed 11/14/23.)
The
Court has considered Defendants’ objections to the Receiver’s Final Report and
Accounting filed November 29, 2023, objecting to the fees incurred for security
and the receiver’s attorney’s fees of $19,306.15, to which Defendants object as
excessive and unnecessary. The Court has also considered the declaration of Oren
Bitan and the Receiver’s reply thereto filed January 11, 2024, in support of
attorney’s fees and costs.
The
Court finds that the hiring of security was necessarily and reasonably incurred
given the ongoing threat of return of the prior operators of the business. The
declaration of Oren Bitan substantiates that the fees incurred were reasonable
and necessary.
Accordingly,
Defendants’ objections thereto are overruled.
IV.
CONCLUSION
Based
on the foregoing, the Court approves the Receiver’s Final Report and Account for
reimbursements in the amounts as reported.