Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_24-cv-01105/USCOURTS-caed-1_24-cv-01105-3/pdf.json

Nature of Suit Code: 220
Nature of Suit: Foreclosure
Cause of Action: 28:1332 Diversity-Breach of Contract

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STIPULATION AND ORDER ON MOTION FOR ORDER APPOINTING TEMPORARY RECEIVER

Case No.: 1:24-1105-KES-SKO

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UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

FRESNO DIVISION

U.S. BANK NATIONAL ASSOCIATION,

Plaintiff,

vs.

TOUCHSTONE PISTACHIO COMPANY, LLC; 

FARSHID ASSEMI; FARID ASSEMI; DARIUS 

ASSEMI; NEEMA ASSEMI; MELISSA 

LAYNE; SONIA ROSEMARY ASSEMI; 

MARICOPA ORCHARDS, LLC; C&A FARMS, 

LLC; ACDF, LLC; CANTUA ORCHARDS, 

LLC; LINCOLN GRANTOR FARMS, LLC; 

PANOCHE PISTACHIOS, LLC; ADAMS 

GRANTOR LAND, LLC; GRANVILLE 

FARMS, LLC; SAGEBERRY FARMS, LLC; 

GRADON FARMS, LLC; MANNING AVENUE 

PISTACHIOS, LLC; ASSEMI AND SONS, 

INC.; WINSTON FARMS, LLC; FFGT FARMS, 

LLC; FAVIER RANCH, LLC; GRANTLAND 

FARMS, LLC; WHITESBRIDGE FARMS, LLC; 

ACAP FARMS, LLC; BEAR FLAG FARMS, 

LLC; COPPER AVNEUE INVESETMENTS, 

LLC; WILLOW AVENUE INVESTMENTS, 

LLC; ASHLAN & HAYES INVESTMENTS, 

LLC; ASSEMI BROTHERS, LLC,

Defendants.

Case No. 1:24-cv-01105-KES-SKO

STIPULATION AND ORDER ON 

MOTION FOR ORDER APPOINTING 

RECEIVER 

Action Filed : September 17, 2024

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1. On September 17, 2024, Plaintiff U.S. BANK NATIONAL ASSOCIATION

(“U.S. Bank”) filed its Complaint for Breach of Credit Agreement, Breach of Guaranty 

Agreement, Breach of Forbearance Agreement, Judicial Foreclosure, Specific Performance, 

Appointment of Receiver, Replevin and Injunctive Relief (the “Complaint”). 

2. The Complaint alleges causes of action against defendants TOUCHSTONE 

PISTACHIO COMPANY, LLC (“Touchstone”); FARSHID ASSEMI; FARID ASSEMI; 

DARIUS ASSEMI; NEEMA ASSEMI; MELISSA LAYNE; SONIA ROSEMARY ASSEMI; 

MARICOPA ORCHARDS, LLC; C&A FARMS, LLC; ACDF, LLC; CANTUA ORCHARDS, 

LLC; LINCOLN GRANTOR FARMS, LLC; PANOCHE PISTACHIOS, LLC; ADAMS 

GRANTOR LAND, LLC; GRANVILLE FARMS, LLC; SAGEBERRY FARMS, LLC; 

GRADON FARMS, LLC; MANNING AVENUE PISTACHIOS, LLC; ASSEMI AND SONS, 

INC.; WINSTON FARMS, LLC; FFGT FARMS, LLC; FAVIER RANCH, LLC; GRANTLAND 

FARMS, LLC; WHITESBRIDGE FARMS, LLC; ACAP FARMS, LLC; BEAR FLAG FARMS, 

LLC; COPPER AVNEUE INVESETMENTS, LLC (sic); WILLOW AVENUE INVESTMENTS, 

LLC; ASHLAN & HAYES INVESTMENTS, LLC; and ASSEMI BROTHERS, LLC.

3. On September 20, 2024, Plaintiff U.S. Bank filed a Ex Parte Motion for Order 

Appointing Receiver, Temporary Restraining Order and Order to Show Cause why a Preliminary 

Injunction Should Not Issue (the “Receiver Motion”) seeking to appoint David Stapleton as 

receiver of the assets of defendant TOUCHSTONE.

4. On September 20, 2024, counsel for Defendants TOUCHSTONE, ACAP FARMS, 

LLC, ACDF, LLC, ADAMS GRANTOR LAND, LLC, ASSEMI AND SONS, INC., BEAR 

FLAG FARMS, LLC, C&A FARMS, LLC, CANTUA ORCHARDS, LLC, COPPER AVENUE 

INVESTMENTS, LLC (erroneously sued as COPPER AVNEUE INVESETMENTS, LLC), 

FFGT FARMS, LLC, FAVIER RANCH, LLC, GRADON FARMS, LLC, GRANTLAND 

FARMS, LLC, GRANVILLE FARMS, LLC, LINCOLN GRANTOR FARMS, LLC, MANNING 

AVENUE PISTACHIOS, LLC, MARICOPA ORCHARDS, LLC, PANOCHE PISTACHIOS, 

LLC, SAGEBERRY FARMS, LLC, WHITESBRIDGE FARMS, LLC, WILLOW AVENUE 

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INVESTMENTS, LLC, and WINSTON FARMS, LLC entered their appearance (the 

“Defendants”). At this time, none of the other named defendants in the Complaint have appeared. 

5. Defendants dispute the allegations in the Complaint. However, both U.S. Bank 

and Defendants recognize the value in minimizing the cost and uncertainty of litigation, as well as 

maximizing the value of the assets that are in dispute as a result of the Complaint. 

6. As such, without prejudice or waiver to any claim, defense or argument that U.S. 

Bank or Defendants may have with respect to the Complaint, U.S. Bank and Touchstone hereby 

stipulate to the appointment of a receiver pursuant to Federal Rules of Civil Procedure 66; Local 

Rule 231; and the Court’s inherent equitable power to order the appointment of a receiver under 

federal law, subject to the terms and conditions set forth in the [Proposed] Order set forth below. 

IT IS SO STIPULATED.

DATED September 27, 2024 DAVIS WRIGHT TREMAINE LLP

Mary H. Haas

Joseph M. VanLeuven

John D. Freed

Matthew E. Ladew

By:/s/John D. Freed

John D. Freed 

Attorneys for Plaintiff

U.S. BANK, National Association 

DATED September 27, 2024 MCDERMOTT WILL & EMERY LLP

Michael S. Nadel 

By:/s/Michael S. Nadel

Michael S. Nadel

Attorneys for Defendants

TOUCHSTONE PISTACHIO COMPANY, 

LLC; MARICOPA ORCHARDS, LLC; 

C&A FARMS, LLC; ACDF, LLC; 

CANTUA ORCHARDS, LLC; LINCOLN 

GRANTOR FARMS, LLC; PANOCHE 

PISTACHIOS, LLC; ADAMS GRANTOR 

LAND, LLC; GRANVILLE FARMS, LLC; 

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SAGEBERRY FARMS, LLC; GRADON 

FARMS, LLC; MANNING AVENUE 

PISTACHIOS, LLC; ASSEMI AND SONS, 

INC.; WINSTON FARMS, LLC; FFGT 

FARMS, LLC; FAVIER RANCH, LLC; 

GRANTLAND FARMS, LLC; 

WHITESBRIDGE FARMS, LLC; ACAP 

FARMS, LLC; BEAR FLAG FARMS, 

LLC; COPPER AVNEUE 

INVESETMENTS, LLC; WILLOW 

AVENUE INVESTMENTS, LLC,

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[PROPOSED] ORDER

The Court hereby FINDS as follows:

A. Appointment of a receiver is appropriate pursuant to Federal Rules of Civil 

Procedure 66; Local Rule 232; and the Court’s inherent equitable power to order the appointment 

of a receiver under Federal law.

B. David Stapleton is not interested in this action and is competent and qualified to 

act as receiver.

C. Good cause exists for the appointment of a receiver in order to maximize the 

recovery to creditors through the orderly sale of the assets of defendant Touchstone, and 

collection of obligations owed to Touchstone.

D. Good cause exists for the entry of a preliminary injunction restraining and 

enjoining Touchstone and its agents, partners, property managers, employees, assignees, 

successors, representatives, and all persons acting under and/or in concert with it from committing 

or permitting waste of the Receivership Property, including any misuse of cash from the 

operations of Touchstone that are part of the Receivership Property; from removing, transferring, 

encumbering, or otherwise disposing of the Receivership Property; and from interfering with the 

receiver in the discharge of the Receiver’s duties.

Having found the foregoing, 

IT IS ORDERED:

1. David Stapleton (the “Receiver”) is appointed as a general receiver in this action.

2. The Receiver is awarded exclusive possession and control over the “Receivership 

Property,” defined as follows:

a. The “Collateral,” as pledged and defined by Section 1 of the Security 

Agreement attached as Exhibit 3 to the September 20, 2024 Declaration of 

Karen Boyer in Support of U.S. Bank National Association’s Ex Parte

Motion for Order Appointing Receiver, Etc. (the “Boyer Declaration”);

b. The “Trust Estate” as set forth in the Deed of Trust, Assignment of Rents, 

Security Agreement and Fixture Filing attached as Exhibit 4 to the Boyer 

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Declaration, including the personal property described therein (the 

“Personal Property”), and Touchstone’s real property located at 19570 

Ave. 88, Terra Bella, CA 93270, APN 319-130-022, as legally described in 

Exhibit A, in Exhibit 4 to the Boyer Declaration (the “Real Property”); 

and

c. All rights, entitlements, leases, interests, contracts, contracts for sale, and 

business affairs associated with and relating to the Collateral, Personal 

Property or Real Property. 

3. Until further order of the Court, the Receivership Property and any disputes related 

to the Receivership Property shall remain under this Court’s exclusive jurisdiction.

4. The Receiver shall not be subject to the control of any of the parties to this matter, 

but shall be subject only to the Court’s direction in the fulfillment of the Receiver’s duties.

Power and Duties of the Receiver

The Receiver shall have the following authority, powers and duties:

1. During the pendency of the receivership, the Receiver is authorized and directed to 

take possession of, manage, control and collect all present and future Receivership Property, 

wherever located (including such Receivership Property as may be in the possession or control of 

third parties). In the course of liquidating and collecting the Receivership Property, the Receiver 

is authorized to conduct limited operations of the Receivership Property if, in his business 

judgment, the benefit of such operations would exceed the cost.

2. The Receiver shall have exclusive right to possession of the Receivership Property 

and may (in accordance with applicable state law) enter any other property where the 

Receivership Property may be located in order to recover such Receivership Property.

3. The Receiver is authorized to sell or otherwise liquidate or dispose of any or all of 

the Receivership Property by public or private sale or such other method as deemed appropriate 

by the Receiver exercising business judgment. All sales of Receivership Property shall be “as is” 

and “with all faults,” free and clear of liens, claims and encumbrances, without representations or 

warranties and without recourse. Subject to the foregoing,

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a. The Receiver is authorized to employ a marketing agent to list and market from 

time-to-time any or all of the Receivership Property, in whole or in part, and to enter into such 

agreements to sell any portion of the Receivership Property on a contingency commission 

arrangement based on the close of any such sale, provided that each such agreement, the sale 

price, the commission, and the sale procedures to be employed shall be as authorized by and 

subject to the terms, covenants, and conditions contained in the Loan Agreements and Terra Bella 

DOT (as those terms are defined in Plaintiff’s complaint), shall be subject to Plaintiff’s prior 

written consent, which may be given or withheld in the exercise of Plaintiff’s sole opinion and 

judgment, and shall be subject to approval and confirmation by this Court. The Receiver is 

excused from effectuating the sale of any receivership Property in accordance with California 

Code of Civil Procedure § 568.5 and/or the provisions of the Enforcement of Judgments Act, and 

the Receiver may employ such sale procedures that the Receiver decides to employ in the exercise 

of the Receiver’s discretion. Plaintiff and Defendants shall be kept apprised of the Receiver’s 

efforts to market and sell the Receivership Property. The Receiver is further authorized to retain 

other professionals that the Receiver determines in his reasonable discretion to be necessary to 

effectively market and sell the Property including, but not limited to, real estate appraisers, 

environmental consultants, and development consultants. All real estate broker fees to be paid in 

connection with the Receiver’s sale of the Property are subject to the prior approval of Plaintiff 

and this Court. Sales of Real Property shall be in accordance with 28 U.S.C. § 2001;

b. Except as ordered by the Court after notice and a hearing, all sales of Real Property 

shall be subject to the express written approval of U.S. Bank;

c. The Receiver may conduct such sales of Touchstone’s inventory as the Receiver 

may deem prudent in the ordinary course of Touchstone’s business; 

d. The Receiver may sell equipment and other personal property Collateral at one or 

more commercially reasonable, professionally conducted auctions without any requirement to 

obtain an appraisal of such Collateral or Court order confirming such sales; and

e. The Receiver may sell inventory, equipment and other personal property 

Collateral outside the ordinary course of Touchstone’s business with an aggregate price not more 

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than $150,000 to any one buyer, without further order of the Court, upon prior written approval 

from Plaintiff. 

4. The Receiver may contract for, hire and terminate agents, employees, appraisers, 

guards, clerks, accountants, liquidators, auctioneers, attorneys and management companies and 

consultants without cause, to administer the Receivership Property, assist the Receiver in his 

duties, and to protect the Receivership Property as the Receiver deems necessary; purchase 

insurance, materials, supplies and services and pay therefore at the usual rate and prices out of 

funds that shall come into the Receiver’s possession; pay the reasonable value of said services out 

of the proceeds of the estate; and no risk or obligation incurred by said Receiver shall be the 

personal risk or obligation of the Receiver, but shall be the risk or obligation of the Receivership 

Property, subject to applicable federal law.

5. The Receiver may engage a locksmith for the purposes of gaining entry to any of 

the Receivership Property through any security system, in order to obtain any property or 

documents to which the Receiver is entitled pursuant to this Order. The Receiver may have locks 

or security codes changed, or have keys created that will work for the existing locks. The 

Receiver may obtain unfettered access to any electronic systems and/or accounts owned by 

Touchstone (“Electronic Accounts”); provided however, that for the avoidance of doubt, 

electronic systems and/or accounts owned by other Defendants or affiliates of Touchstone shall 

not be considered Electronic Accounts. Touchstone shall provide, or shall direct its agents, 

partners, property managers, employees, assignees, successors, representatives, and all persons 

acting under and/or in concert with it to provide, the Receiver with any all means of accessing the 

Electronic Accounts, including but not limited to usernames, passwords, credentials, and/or the 

answers to challenge questions. 

6. The Receiver may demand, collect, and receive all receipts, rents, profits, monies, 

security deposits, advance deposits, funds and payments arising from the Receivership Property, 

as a whole or as to any and all improvements thereon, and take all actions necessary or 

appropriate in furtherance thereof, including commencing any court actions, lawsuits, or other 

proceedings deemed appropriate by the Receiver in order to protect Receivership Property.

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7. The Receiver may take any and all steps necessary to receive, collect and review 

all mail and deliveries addressed to Touchstone and any post office boxes held in the name of 

Touchstone and, at the Receiver’s discretion, to instruct the U.S. Postmaster to re-route, hold, and 

or release said mail to the Receiver. Mail reviewed by the Receiver in the performance of duties 

will promptly be made available for inspection to Touchstone after review by the Receiver.

8. The Receiver may take possession of all of Touchstone’s bank accounts and chattel 

paper that pertain to the Receivership Property wherever located and receive possession of any 

money on deposit in said bank accounts. The subject bank is discharged from further 

responsibility for accounting to Touchstone for funds for which the Receiver has given a receipt.

9. The Receiver may establish bank accounts at any bank the Receiver deems 

appropriate for the deposit of monies and funds collected and received in connection with the

administration of the Receivership Property, provided that all funds on deposit are insured by an 

agency of the United States government. Touchstone shall provide the Receiver within 48 hours 

of the Receiver’s request all information, documentation and signatures required by any bank or 

other financial institution to open or maintain any accounts as provided under this Order.

10. Upon presentation of a conformed copy of this Order to any third party, including 

but not limited to banks or depositories owing performance of any obligation or duty to 

Touchstone with respect to the Receivership Property, such third parties shall render any 

performance or duties with respect to the Receivership Property directly to the Receiver.

11. The Receiver may seek discovery of any books and records of Touchstone’s 

affiliates or other persons or entities that the Receiver deems necessary or desirable to carry out 

the Receiver’s duties, including the books and records of Assemi Group, Inc. (“AGI”) concerning 

or related to Touchstone.

12. The Receiver shall execute and prepare all documents and perform all acts, 

including entering into contracts, operating licenses, or signing checks or initiating and processing 

electronic funds transfers either in the name of Touchstone, as it is applicable, or in the Receiver’s 

own name, which are necessary or incidental to preserving, protecting, managing, controlling 

and/or liquidating the Receivership Property.

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13. The Receiver may compromise debts related to the Receivership Property and do 

all things and to incur the risks and obligations of similar businesses operating the Receivership 

Property. Subject to applicable federal law, no risk or obligation incurred by the Receiver shall be 

at the personal risk or obligation of the Receiver, but shall be the risk or obligation of the 

Receivership Property.

14. The Receiver may contact, and bring and prosecute all proper actions for collection 

from any debtor on the accounts receivable for the Receivership Property (“Accounts Receivable 

Debtors”), and advise them not to send further accounts receivable payments to Touchstone and 

instruct the Accounts Receivable Debtors to send any and all payments directly to the Receiver.

15. Net proceeds from sale of Receivership Property, and other money coming 

into possession of the Receiver and not expended for any of the purposes herein authorized, 

shall be held by said Receiver for the payment of the obligations of Touchstone to Plaintiff 

and other creditors, subject to such orders as the Court may hereinafter issue as to its 

disposition. 

16. The Receiver may institute ancillary proceedings in this State or other states and 

countries, prosecute and tender all suits or insurance claims, and pursue all remedies available by 

law as is necessary to preserve and protect the Receivership Property and ensure compliance with 

the Receiver’s authority. The Receiver may bring and prosecute all proper action for collection of 

payments, rent and lease payments due, if any, on the Receivership Property, as well as necessary 

actions and proceedings for the removal of tenants or lessees in default for any rental or lease 

agreement, or any other persons, from the Receivership Property, and may bring and prosecute all 

proper actions for the protection of the Receivership Property or recovery thereof.

17. Receiver, as an agent of the Court, shall be entitled to the assistance of law 

enforcement officials when taking possession, or at any other time during the term of the 

Receivership, if in the opinion of Receiver, such assistance is necessary to preserve the peace and 

protect the Receivership Property, without further order from the Court.

18. The Receiver may exclude any person or entity who does not have a lease or rental 

agreement from possession of the Receivership Property, or any portion thereof.

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19. The Receiver may assume, extend, or modify any pre-receivership contracts or 

agreements, including unexpired leases, relating to the Receivership Property, and/or reject such 

contracts in the Receiver’s sole judgment and discretion.

20. Unless otherwise ordered by the Court, the Receiver is not obligated to undertake, 

and will have no liability for any remediation or cleanup with respect to hazardous materials 

presently existing under, on or about the Real Property. The Receiver is authorized, in its sole 

discretion, to initiate environmental due diligence, inspections, or other environmental monitoring 

it initiates, and shall have no liability for any hazardous materials presently existing under, on or 

about the Real Property.

21. The Receiver shall be under no obligation to complete or file tax returns on behalf 

of Defendants for income or other taxes arising before the date of this order. The Receiver shall 

otherwise comply with all applicable laws and regulations relating to tax-reporting requirements. 

The Receiver shall furnish Defendants with such access to books and records within the 

Receiver’s custody or control as reasonably may be necessary for Defendants to complete and file 

tax returns on their own behalf.

22. The Receiver shall be entitled to utilize Touchstone’s tax identification numbers in 

connection with any powers exercised pursuant to this Order or, at the Receiver’s discretion 

obtain new tax identification numbers.

23. Any utility company providing services to the Receivership Property, including 

gas, electricity, water, sewer, trash collection, telephone, cable, communications Wi-Fi, Internet, 

or similar services, shall be prohibited from discontinuing and prohibited from failing to comply 

with any request by the Receiver to, and are prohibited from refusing to, reinstitute service to the 

Receivership Property based any non-payment by Touchstone prior to the Receiver’s appointment 

by the Court based upon unpaid bills incurred by Touchstone. Further, such utilities shall transfer 

all rights to any deposits held by the utility company to the exclusive control of the Receiver and 

be prohibited from demanding that the Receiver deposit additional funds in advance to maintain 

or secure such services. New accounts under the name of the Receivership may be established 

within 30 days, or the Receiver may continue to operate under Touchstone's accounts.

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24. The Receiver may analyze the books, records, and files of (a) Touchstone and (b) 

on order of the Court, following notice to the affected party, those of AGI or other person or 

entity with respect to Touchstone, including bank account and accounting records to determine 

the sources and uses of cash, accounts, and asset sale proceeds, to investigate transfers of funds by 

or to Touchstone, and to engage in other forensic accounting as deemed appropriate to the 

Receiver.

25. The Receiver, on order of the Court, following notice and a hearing, and on the 

conditions or terms that the Court considers just and proper, may abandon any Receivership 

Property that is burdensome to the Receiver or is of inconsequential value or benefit. Property that 

is abandoned shall no longer constitute Receivership Property.

26. The Receiver, or any party to this action, may from time to time, and on due notice 

to all parties, make application to the Court for further orders instructing said Receiver or 

expanding the Receiver’s authority.

Receivership Expenses

27. The Receiver shall charge the amount of $475 per hour for his services, subject to 

annual adjustment upon notice to the parties, plus expenses as set forth in Exhibit 2 to the 

September 20, 2024 Declaration of David Stapleton filed in support of the Receiver Motion, 

which is subject to annual adjustment upon notice to the parties.

28. The Receiver shall pay the operating expenses of the Receivership Property from 

the income generated by the Receivership Property, and to the extent Receivership Property 

income is inadequate to pay the operating expenses, may borrow money from the “Lenders” 

described in Plaintiff’s Complaint (such borrowings, the “Receivership Advances”).

29. The Lenders shall not be obligated to make Receivership Advances, but any such 

Receivership Advances shall be added to the obligations owed by Touchstone to the Lenders 

making said Receivership Advances. Receivership Advances shall bear interest at the rate

provided under the Loan Agreements, and shall be paid to the extent of available Receivership 

Property no later than upon approval of the Receiver’s final report and account. If there is 

insufficient Receivership Property to repay the Receivership Advances in full, Touchstone and the 

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defendant Guarantors shall have sole liability to repay such deficiency and, and the Receiver shall 

have no liability to repay such deficiency. 

30. The Receiver may issue to Plaintiff, as Collateral Agent for the Lenders, Receiver's 

Certificates to evidence Receivership Advances, with such Receiver’s Certificates to be liens 

against the Receivership Property that have priority over all other liens, interests and claims 

against the Receivership Property on a priority repayment basis, except for fees and costs 

approved under Paragraph 32. The original Certificates shall be delivered to Plaintiff, to be filed 

and/or recorded in Plaintiff’s discretion.

31. Within 30 days following entry of this Order, the Receiver shall prepare an 

operating budget for the receivership (the “Budget”) and submit it to Plaintiff for approval, which 

must include all anticipated fees, expenses, and disbursements of the Receivership Property.

32. The Receiver is authorized to make payment for any bond, fees and costs, and for 

the Receiver’s fees and fees and costs of professionals, by filing a notice of intent to compensate 

professionals and serving such notice, together with a reasonably detailed description of the time 

periods, services and amount requested, on the parties or their counsel, if applicable, creditors

having liens, security interests or other interests on or in the Receivership Property, and anyone 

else filing an appearance in this case. If no party in interest objects to such notice within 10 

calendar days of its filing and service, the fees and costs shall be deemed approved as being fully 

and finally earned without further order or leave of the Court. If a party objects, the party will 

serve a written objection on the Receiver stating the nature and scope of the objection. Upon 

receipt of an objection, the Receiver and the objecting party must first attempt to resolve the 

objection through negotiation. If the objection cannot be so resolved, the objecting party may file 

its objection in Court within 7 days after the date of the objection. Unless otherwise agreed by the 

Receiver, any objection not filed within 7 days after the date of service of the objection is deemed 

waived. Only those portions of the fees and costs that are the subject of a timely objection will be 

withheld from payment until the objection is resolved, and all other portions of the fees and costs 

will be deemed approved without further order or leave of the Court. The approved fees and costs 

of the Receiver and its professionals shall be paid from the gross receipts derived from the 

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Receivership Property and shall be a first-priority lien on Receivership Property. If Receivership 

Property is not sufficient to pay the Receiver’s fees and its professional’s fees as presented, the 

Plaintiff shall advance funds to the Receiver sufficient to pay such approved fees and costs. Any 

such advance will be considered a Receivership Advance.

33. The Receiver may employ a law firm as Receiver’s legal counsel (“Receiver’s 

Counsel”) in this matter, as reasonably necessary to accomplish the purposes of this Order. 

Compensation to Receiver’s Counsel shall be based on an hourly rate not to exceed $600.00 per 

hour, subject to annual adjustment upon notice to the parties. Receiver’s Counsel shall be entitled 

to reimbursement of all reasonable costs and expenses incurred on behalf of the Receivership 

estate. The attorneys’ fees and cost incurred by Receiver’s Counsel may be included in the 

administrative costs and expenses to be paid to the Receiver in accordance with paragraph 32 of 

this Order.

34. The Receiver may employ The Stapleton Group as Receiver’s agent in this matter, 

as reasonably necessary to accomplish the purposes of this Order. Compensation to The Stapleton 

Group shall be based on the hourly rates and expenses as set forth in Exhibit 2 to the Declaration 

of David Stapleton, subject to annual adjustment upon notice to the parties. The Stapleton Group 

shall be entitled to reimbursement of all reasonable costs and expenses incurred on behalf of the 

Receivership Property. The reasonable fees and costs incurred by The Stapleton Group may be 

included in the administrative costs and expenses to be paid to the Receiver as set forth in 

Paragraph 32.

Financial Reporting

35. To the extent feasible, the Receiver shall, within thirty (30) days of qualification 

hereunder, file in this action an inventory of all property of which the Receiver has taken 

possession pursuant to this Order and shall conduct periodic accountings thereafter.

36. Beginning on the second Thursday following approval of the Budget and weekly 

thereafter, the Receiver shall provide the Plaintiff with weekly reporting regarding the 

Receivership Property’s performance under the Budget, including a variance report with 

explanations for any negative variance on a line-item basis. The Receivership Advances

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authorized above shall be consistent with the Budget. Total disbursements for any particular 

measurement period on an aggregate, accumulated, and rolling basis, shall not exceed any line 

item in an approved budget by more than 10 percent of Budgeted amounts, without the written 

consent of the Plaintiff. The Receiver and the Plaintiff may amend the Budget from time to time 

by agreement.

37. The Receiver shall provide the Court, the parties or their counsel, if applicable, and 

anyone else filing a notice of appearance in the case, monthly reports on the operations and 

financial affairs of the Receivership Property (each, a “Report”). Each Report shall be due by the 

last day of the subsequent month and shall include: (a) a balance sheet; (b) a statement of income 

and expenses; (c) a cash flow statement; (d) a statement of accrued accounts receivable of the 

receiver, with amounts considered uncollectable; (e) a statement of accounts payable of the 

receiver, including professional fees; (f) Receivership Property sale progress reports; and (g) a 

narrative summary of the operations, if any, of the Receivership Property. The Receiver’s Report 

shall also include a copy of any Receivership Certificates issued during the period covered by the 

Report. The Receiver’s first Report shall be a report of the first two months of operation.

38. If there is insufficient insurance coverage on the Receivership Property, the 

Receiver shall have thirty (30) business days to procure said insurance on the Receivership 

Property, provided the Receiver has funds available to do so, and during said period, the Receiver 

shall not be personally responsible for claims arising or for the procurement of insurance. With 

respect to any insurance coverage, the Receiver, and other parties with insurable interest, shall be 

named as additional insureds on the policies for the period that the Receiver shall be in possession 

of the Receivership Property. With respect to any property coverage in existence or obtained, 

Plaintiff shall be named as the mortgagee and loss payee.

Procedure for Notice and Hearing

39. To the extent this Order requires Court approval for any action herein, the Receiver 

may file a notice of proposed action and proposed Order, with a seven-day response time. If no 

party-in-interest files a written objection to the proposed action or form of Order within the 

Response Time, the Receiver may submit such Order for entry by the Court, supported by a 

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declaration attesting that no objections were filed.

Effective Date

40. Appointment of the Receiver as the receiver is effective as of the date the Receiver 

furnishes a bond from a court-approved surety in the sum of $50,000. 

41. Entry of this Order, countersigned by the Receiver, evidences the Receiver’s 

acceptance of its rights and duties hereunder and constitutes administration of any required oath 

of office.

Preliminary Injunction

42. Touchstone and its respective agents, partners, property managers, employees, 

assignees, successors, representatives, members, managers, creditors, lessors, customers, tenants, 

lienholders of Receivership Property, and other persons seeking to establish or enforce any claim, 

right or interest against or on behalf of Touchtone, and all others acting for or on behalf of such 

persons or acting under and/or in concert with them, including attorneys, trustees, agents, sheriffs, 

constables, marshals and other officers and their deputies, and their respective attorneys, agents, 

servants, and employees, excluding Plaintiff(“Restrained Parties”) are hereby preliminarily 

enjoined as of 9/28/2024 at 6:55 p.m. as follows:

a. Restrained Parties shall not interfere with the Receiver in the performance of 

his duties, or commit or permit any waste of the Receivership Property.

b. Restrained Parties shall not transfer any part of the Receivership Property, 

including cash proceeds of operations, to any third party for any purpose other than 

payment bona fide accounts payable to unaffiliated third parties of Touchstone for 

its business operations.

c. Restrained Parties shall not expend, disburse, transfer, assign, sell, convey, 

devise, pledge, mortgage, create a security interest in, encumber, conceal, or in any 

manner whatsoever deal in or dispose of the whole or any part of the Receivership 

Property without prior Court order.

d. Restrained Parties shall not commence, prosecute, continue or enforce any 

suit or proceeding against Touchstone, except as such actions may be filed to toll 

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any applicable statutes of limitations with respect to Receivership Property.

e. Restrained Parties shall not commence, prosecute, continue or enter into 

any suit or proceeding in the name or on behalf of Touchstone with respect to 

property of the Receivership Property.

f. Restrained Parties shall not accelerate the due date of any obligation or 

claimed obligation, enforce any lien upon, or take or attempt to take possession of, 

or retain possession of, any of the Receivership Property, or any property claimed 

by any of them or attempting to foreclose, forfeit, alter, or terminate any of 

Touchstone’s interest in property, including, without limitation, the establishment, 

grant or perfection of any security interest, whether such acts are part of a judicial 

proceeding or otherwise with respect to the Receivership Property.

g. Restrained Parties shall not use self-help or execute or issue, or cause the 

execution or issuance, of any court attachment, subpoena, replevin, execution or 

other process for the purpose of impounding or taking possession of or interfering 

with, or creating or enforcing a lien upon, any property, wheresoever located, 

owned by or in the possession of Touchstone or the Receiver appointed pursuant to 

this Order or any agent appointed by said Receiver with respect to Receivership 

Property; and

h. Restrained Parties shall not do any act or thing whatsoever to interfere with 

the Receiver taking control, possession or management of property of the 

Receivership Property or any other property subject to this Receivership, or to in 

any way interfere with the Receiver, or to harass or interfere with the duties of the 

Receiver, or to interfere in any manner with the exclusive jurisdiction of this Court 

over the property and assets of the Receivership Estate, including refusing to turn 

over Receivership Property upon demand by the Receiver. Provided, however, 

nothing in this paragraph shall prohibit any federal or state law enforcement or 

regulatory authority from commencing or prosecuting an action against the 

Receivership Estate with respect to Receivership Property.

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43. The Restrained parties are hereby affirmatively required to provide full and 

immediate access to the Receiver of all books and records, including banking records and 

Electronic Accounts, of Touchstone and access to its bank accounts. Restrained Parties, by and 

through appropriate and knowledgeable persons employed by Touchstone, promptly shall respond 

to any and all inquiries from the Receiver as to operations. Restrained Parties shall provide the 

Receiver with all keys, access codes, passwords, usernames, security questions and answers, and 

credentials to access Touchstone’s books and records, including Electronic Accounts.

IT IS FURTHER ORDERED,

1. The Receiver Motion is withdrawn. 

2. Defendants have the right to apply to the Court for modification or dissolution of 

this Order according to the Local Rules for the United States District Court for the Eastern 

District of California. 

IT IS SO ORDERED.

Dated: September 28, 2024 

 UNITED STATES DISTRICT JUDGE

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