Source: https://trellis.law/ca/issue-type/receivership-378
Timestamp: 2020-07-15 05:13:46
Document Index: 497854474

Matched Legal Cases: ['§ 17980', '§ 564', '§ 567', '§ 568', '§ 17980', '§ 568', '§ 568', '§ 564', '§ 564', '§ 3294', '§ 564', '§ 564', '§ 17980', '§ 568', '§ 564', '§ 564', '§ 2938', '§ 564', '§ 564', '§ 567']

California Code of Civil Procedure Sections 564-570 governs Receivership and provides in relevant part:
A receiver may be appointed, in the manner provided in this chapter, by the court in which an action or proceeding is pending in any case in which the court is empowered by law to appoint a receiver.
A receiver may be appointed by the court in which an action or proceeding is pending, or by a judge thereof, in the following cases:
In an action by a vendor to vacate a fraudulent purchase of property...
In an action by a secured lender for the foreclosure of a deed of trust or mortgage and sale of property upon which there is a lien under a deed of trust or mortgage...
After judgment, to dispose of the property according to the judgment, or to preserve it during the pendency of an appeal, or pursuant to the Enforcement of Judgments Law (Title 9 (commencing with Section 680.010)), or after sale of real property pursuant to a decree of foreclosure, during the redemption period, to collect, expend, and disburse rents as directed by the court or otherwise provided by law.
In an action by a secured lender for specific performance of an assignment of rents provision in a deed of trust, mortgage, or separate assignment document...
In a case brought by an assignee under an assignment of leases, rents, issues, or profits pursuant to subdivision (g) of Section 2938 of the Civil Code.
A receiver may be appointed, in the manner provided in this chapter, including, but not limited to, Section 566, by the superior court in an action brought by a secured lender to enforce the rights provided in Section 2929.5 of the Civil Code, to enable the secured lender to enter and inspect the real property security for the purpose of determining the existence, location, nature, and magnitude of any past or present release or threatened release of any hazardous substance into, onto, beneath, or from the real property security..
Any action by a secured lender to appoint a receiver pursuant to this section shall not constitute an action within the meaning of subdivision (a) of Section 726.
Civ. Code, Sec. 564
Civ. Code, Sec. 567 provides, with respect to the oath and undertaking of court-appointed receivers:
The receiver’s bond is usually fixed high enough to cover the value of any cash or transferable personal property coming into the receiver’s possession. It is the applicant’s responsibility to propose the amount of the bond, but the opposing party may propose a higher amount. (California Rules of Court 1902.5.) Wherever possible, counsel should submit affidavits stating facts justifying the amount of bond. (Id.)
Civ. Code, Sec. 568 sets forth the powers of a receiver:
“The receiver has, under the control of the Court, power to bring and defend actions in his own name, as receiver; to take and keep possession of the property, to receive rents, collect debts, to compound for and compromise the same, to make transfers, and generally to do such acts respecting the property as the Court may authorize.”
It is held that a receiver may not be sued without leave of court. Ostrowski v. Miller (1964) 226 Cal.App.2d 79, 84-85.
Receivership Overview and Caselaw
In the context of a forced sale or winding up of a business entity, “[t]he receiver's powers included enforcing and collecting debts, instituting lawsuits on behalf of [entity] represented to preserve and protect the [...] assets, discharge obligations of business against the funds in [its] possession, and engaging the services of counsel.” (O'Flaherty v. Belgum (2004) 115 Cal.App.4th 1044, 1048.)
Liability for Torts Committed in the Performance of Receivership
“A receiver is an officer of the court possessing the property for the court. (Pacific Indem. Co. v. Workers' Comp. App. Bd. (1968) 258 Cal.App.2d 35, 40.) Consequently, a receiver is liable in tort solely in an official capacity, not a personal one. (Sealite, Inc. v. Finster (1957) 149 Cal.App.2d 612, 617-618; Chiesur v. Superior Court (1946) 76 Cal.App.2d 198, 200-201.) ‘He is not personally liable for torts committed in the performance of his receivership duties; liability is in his official capacity only, to be satisfied from receivership funds.’ (6 Witkin, Cal. Procedure (3d ed. 1985) Provisional Remedies, Sec. 364, at 304-305.).”
A receiver is personally liable if he does not give priority to the tax liens of the United States (31 U.S.C. ss 191, 192, supra; King v. United States, supra, 379 U.S. 329.) Further, the withholding and Federal Insurance Contributions Act taxes accruing during the receivership constitute expenses of administration of high priority and are to be held in trust by the receiver for the United States (Cf., Estate of Dwyer, 168 Ca.App.2d 264, 267.) While California is not armed with such formidable statutes imposing personal liability upon a receiver, it is clear that the state sales taxes and unemployment insurance contributions are entitled to high priority in payment (Cf., Estate of Morris, supra, 37 Cal.App.2d 155, 157—158.)
Useful Rulings on Receivership
HCR MOORPARK INVESTORS LLC VS NORTH PARK COMMUNITIES LLC
HCR Moorpark Investors, LLC, v. North Park Communities, LLC, et al. Judge Mary Strobel Hearing: June 13, 2017 BS135115 Hearing on Status Reports re: Sale of Assets Tentative Decision on Motion and Renewed Motion for Issuance of Order Fixing Amount of Supersedeas Bond for Any Party Wishing to Stay Sale Pending Appeal Receiver Faith A. Devine (“Receiver”) renews her motion for the issuance of...
..rtunity to exercise a right of first offer. Evidentiary Objections Baldwin’s Objections to Declaration of Receiver Faith Devine (1)-(7) No objections (8) Overruled. (9) Overruled. (10) Overruled. (11) Overruled. (12) Sustained. (13) Overruled. (14) Sustained as to sentence 1, Overruled as to sentence 2 prior to subparagraphs a – f. As to subparagraphs a – f, Overruled as to subparagrap...
CITY OF POMONA VS LOLA M. NEWMAN
City of Pomona v. Newman, et al. (KS021333) Plaintiff City of Pomona’s MOTION FOR APPOINTMENT OF RECEIVER AND OTHER RELIEF PURSUANT TO H&S 17980.7 Respondent: NO OPPOSITION TENTATIVE RULING Plaintiff City of Pomona’s motion for appointment of receiver and other relief pursuant to H&S 17980.7 is GRANTED. Bond amount will be determined at the hearing. RECEIVERSHIP: “A receiver may be appointed...
..eiver, the court shall consider whether the owner has been afforded a reasonable opportunity to correct the conditions cited in the notice of violation. (2) The court shall not appoint any person as a receiver unless the person has demonstrated to the court his or her capacity and expertise to develop and supervise a viable financial and construction plan for the satisfactory rehabilitation of t...
CITY OF POMONA, A CALIFORNIA MUNICIPAL CORPORATION VS MARY ANDREWS, TRUSTEE FOR LIVING TRUST DATED SEPTEMBER 10, 1993, A DECEASED INDIVIDUAL, ET AL.
Petitioner City of Pomona’s petition for appointment of receiver and other relief pursuant to H&S § 17980.7 is GRANTED. Bond amount will be determined at the hearing. Receivership “A receiver may be appointed by the court in which an action or proceeding is pending, or by a judge thereof… In all other cases where necessary to preserve the property or rights of any party.” (CCP § 564(b)(9).) The...
..y person as a receiver unless the person has demonstrated to the court his or her capacity and expertise to develop and supervise a viable financial and construction plan for the satisfactory rehabilitation of the building… (3) If a receiver is appointed, the owner and his or her agent of the substandard building shall be enjoined from collecting rents from the tenants, interfering with the receiv...
Santa Barbara Bank & Trust Company NA vs Melchiori Construct
Nature of Proceedings: OSC Appoint Receiver Order to Show Cause for Appointment of Receiver and for Preliminary Injunction RULING The application for appointment of receiver and for preliminary injunction will be granted as set forth herein, provided the application and order to show cause were served on defendants by October 5, 2012 and a proper proof of service is filed with the cour...
..t by SBBT. The revolving line of credit was evidenced by a revolving term note dated September 25, 2009, which served to amend and restate certain prior debt instruments executed by defendant. The note was secured by collateral consisting of all of Melchiori Construction’s personal property, including deposit accounts, accounts receivable, chattel paper, goods, inventory, equipment, and fixtures...
..superior court has jurisdiction to appoint a receiver as an ancillary remedy in an action for partition of real property..." Blodgett v. Haddock (1949) 95 Cal.App.2d 17, 18. The application does not name any potential receivers nor does it address the receiver's undertaking (CCP § 567) or the receiver's powers and duties (CCP § 568). At the hearing of an application for appointment of a receiver...
Recent Rulings on Receivership
Los Angeles County, CA (108)
The motion is brought pursuant to the Court’s order entered January 11, 2019, on the grounds that the settlement agreement is in the best interest of the receivership estate and within the powers of the receiver pursuant to California Code of Civil Procedure, Section 568. The motion is unopposed.
Section 17980.7 also empowers the receiver to sell the property or to take any other action respecting the property as the court may authorize. (Code Civ. Proc., § 17980.7(c)(4)(H); Code Civ. Proc., §§ 568, 568.5.) A receiver has the power, with court authorization, to take possession of property, receive rents, collect debts, borrow money, and sell real or personal property in receivership pursuant to court order. (Code Civ. Proc., §§ 568, 568.5.)
Dist. of Columbia (1896) 161 U.S. 316, 327–328, 16 S.Ct. 564, 568, 40 L.Ed. 712." Mizirawi v. Holl, 135 Cal. App. 3d 322, 324–25 (1982) (some citations omitted); see also CCP sections 881-883. 3. Discussion and Ruling. The demurrer to the FACC by PL Hotel Group and Shivam Patel, as joined by Rajesh Patel and Inn Lending, is overruled. As a preliminary matter, the court notes that the demurrer is actually directed at Cassidy's original cross-complaint, rather than the FACC. ROA 291, 394.
Alvarado, as a shareholder of Rio Verde and HZB, has a sufficient interest under CCP section 564(b)(1) to move for a receivership over Rio Verde and HZB. Because the court does not find other requirements satisfied to appoint a receiver as to Rio Verde, HZB, or Pacific (see infra), the court need not consider whether Rio Verde can, under present circumstances, move to appoint a receiver over itself or whether Plaintiffs can move for a receiver with respect to Pacific.
CCP section 564 provides that “[a] receiver may be appointed, in the manner provided in this chapter, by the court in which an action or proceeding is pending in any case in which the court is empowered by law to appoint a receiver.” (Code Civ. Proc., § 564(a).) Subdivision (b) of CCP section 564 lists the circumstances under which a receiver may be appointed, including after a judgment pursuant to the Enforcement of Judgments Law. (Id., § 564(b)(4); see also Gold v.
Municipal Court (1979) 99 Cal.App.3d 568, 575.) Purchasers move to strike Plaintiffs’ prayer for punitive damages. (Motion at pp. 4–5.) Punitive damages are allowed in non-contract cases when a defendant is guilty of “oppression, fraud, or malice . . . .” (Civ. Code § 3294.)
Accordingly, plaintiff does not meet her burden of demonstrating why a receiver is necessary to prevent the subject property from being “materially injured.” (CCP § 564(b)(1).)
Eric Beatty (“Court Receiver”) as the court’s receiver over the subject property per the terms of the Compliance Agreement, HSC section 17980.7 and Code of Civil Procedure (“CCP”) section 564(b)(9); (5) granting the Court Receiver the authority to manager and oversee the rehabilitation of the subject property pursuant to HSC section 17980.7(c)(4) and CCP section 568; (6) authorizing the Court Receiver to secure funding for the receivership estate through the issuance of receiver’s certificates that may be recorded
Standard: Code of Civil Procedure section 564 provides, in relevant part: “A receiver may be appointed by the court in which an action or proceeding is pending, or by a judge thereof, in the following cases: . . . (6) Where a corporation is insolvent, or in imminent danger of insolvency, or has forfeited its corporate rights. (9) In all other cases where necessary to preserve the property or rights of any party. (Code Civ. Proc. § 564, subd. (b)(6), (9).) Analysis: The Court will deny the request.
CITY OF GARDEN GROVE VS. OBANDO
CLARK VS. LOYD
upon such notice to the corporation as the court may direct and upon the giving of security pursuant to Sections 566 and 567 of the Code of Civil Procedure, the court may appoint a receiver to take over and manage the affairs of the corporation and to preserve its property pending the hearing and determination of the complaint for dissolution.
Although the Receiver presents authority for the proposition that receivers generally may prosecute actions to set aside fraudulent transfers of the property over which they have been charged (See Heffernan v. Bennett & Armour (1952) 110 Cal.App.2d 564, 588–89), he presents no authority for the proposition that such action may be taken by the irregular avenue presented by the present motion.
to manage and oversee the rehabilitation of the subject property as set forth in Health & Safety Code § 17980.7(c)(4) and CCP § 568, (4) authorizing Proposed Receiver to secure funding for the receivership estate through the issuance of Receiver’s certificates that may be recorded as first priority liens on the subject property, (5) enjoining 534 Foothill and Bank from interfering with Proposed Receiver in the operation of the subject property, encumbering or transferring all or any portion of the subject property
Standard: Code of Civil Procedure section 564 provides, in relevant part: “A receiver may be appointed by the court in which an action or proceeding is pending, or by a judge thereof, in the following cases: . . . (6) Where a corporation is insolvent, or in imminent danger of insolvency, or has forfeited its corporate rights. (9) In all other cases where necessary to preserve the property or rights of any party. (Code Civ. Proc. § 564, subd. (b)(6), (9).) Analysis: The Court denies the request.
CCP section 564(b)(1) authorizes the court to appoint a receiver “on the application of the plaintiff, or of any party whose right to or interest in the property or fund, or the proceeds thereof, is probable, and where it is shown that the property or fund is in danger of being lost, removed, or materially injured.” (emphasis added.) CCP sections 564(b)(6) and (9) also do not require unanimous consent of LLC members for the court to appoint a receiver.
LONE OAK FUND, LLC VS 4 ACES BRAND, INC
The Court is inclined to GRANT Plaintiff’s UNOPPOSED Motion for the Appointment of a Rents, Issues and Profits Receiver pursuant to CCP § 564(b) (11) and Civil Code § 2938(c). It would appear the parties’ agreements in the Deed of Trust provide plaintiff with the right to such an appointment under the circumstances. Plaintiff has established that defendant 4 Aces Brand, Inc. is in default of its obligations and that defendant agreed contractually that plaintiff may obtain the appointment of a receiver.
Finally, appointing a receiver is a drastic remedy, which will ordinarily not be used if any less severe remedy is available. (Id. at 873.) To appoint a receiver under § 564(b)(1) the Court would need evidence of the joint venture included with the moving papers. Similarly, the Court would also need evidence of plaintiff’s entitlement to the profits from the sale of the properties in order to appoint a receiver under § 564(b)(9).
The receiver shall be allowed the cost of the undertaking.” (Emphasis added.) (Code of Civil Procedure, § 567(b).)
A party requesting the appointment of a receiver must allege facts establishing one of the statutory grounds for such appointment. (Miller v. Oliver (1917) 174 Cal. 407, 410.) Code of Civil Procedure section 564, subdivision (b)(1) provides that, in an action between partners, on the application of the plaintiff, a receiver may be appointed where (1) plaintiff’s right to the property is probable, and (2) where it is shown that the property is in danger of being lost, removed, or materially injured.
But it is alleged that New Century was placed under receivership, and lacked the authority to assign its interest to Citimortgage without the consent of the receiver. (Complaint ¶ 8.) Defendants fail to explain why this allegation is insufficient. QUIET TITLE Citimortgage argues the Quiet Title claim fails because Citimortgage has no adverse claim to the property. (Demurrer at p. 11.) This argument has merit, since a quiet title claim requires that a defendant “has adverse claims to title.” (West v.
This point of operation safeguarding device uses light beams that are sent from a transmitter across the front of the press to a receiver. It prevents the operation of the press or stops the motion of the press immediately upon any of [the] light beams being interrupted by the body part.