Judge: Stephen I. Goorvitch, Case: 23STCP01011, Date: 2025-02-19 Tentative Ruling

Case Number: 23STCP01011    Hearing Date: February 19, 2025    Dept: 82

City of Los Angeles v. Crest Apartments LP, et al.

Case No. 23STCP01011

[Tentative] Order Granting Motion to Expunge Liens

            The court posts this tentative order on Monday, February 17, 2025, at approximately 12 Noon.  The court provides notice: Unless there is a request for oral argument on or before February 19, 2025, at 8:30 a.m., the court will take the hearing off-calendar and shall issue this order.  Any request for oral argument may be emailed to the court’s clerk at the following email address: WRDept82@LACourt.org.

            National Equity Fund Inc. (“NEF”) moves to expunge two mechanic’s liens recorded against the property known as SP7 Apartments Property, which is located at 519 East 7th Street, Los Angeles, California 90014 (the “Property”).  The first lien was recorded on June 14, 2023, in the amount of $10,646.20.  The second lien was recorded on June 20, 2023, in the amount of $180,000.  Both liens were recorded by United Guard Security, Inc. (“UGS”).  NEF served this motion on UGS’s Chief Executive Officer and UGS’s counsel in a related case.  UGS has not filed any opposition to this motion.  The court grants this motion for several reasons. 

First, the mechanic’s liens were recorded after the court placed the Property into receivership as part of the Skid Row Housing Trust case.  (See Court’s Order, dated April 7, 2023.)  USG did not obtain court approval to record these liens. 

Second, the mechanic’s liens relate to services provided to properties other than the Property.  (See Stephenson Decl. Exhs. A-D.)  The record is clear that the Property’s owner offered to pay the outstanding bill as it relates to security services for the Property.  (Id. Exh. D.) 

Third, the mechanic’s liens themselves are defective.  The liens were not recorded in a timely manner.  UGS failed to commence an action before this court within the requisite time period.  The liens erroneously named the Skid Row Housing Trust as the owner of the Property.

Fourth, UGS has not filed an opposition or advanced any evidence demonstrating that the debts are valid.  Nor has UGS addressed any of the deficiencies in the liens.

Finally, this court has equitable authority to extinguish any lien in connection with the sale of the Property.  (See City of Riverside v. Horspool (2014) 223 Cal.App.4th 670, 684.)  The court finds that a failure to extinguish these liens would seriously and negatively impact the low-income tenants who reside at the building and undermine the purpose of the receivership. 

Based upon the foregoing, the court grants the motion by way of a separate, signed order.  Counsel for NEF shall provide notice and file proof of service with the court.