Blog

Substandard motels are present in cities across the state California. We have all stayed in a motel where we wished we had read the Yelp reviews first, right? Usually property owners of these substandard commercial properties neglect the basic maintenance needs of the property to save money which, in turn, causes the property to fall into severe disrepair. In these situations, a Court-Appointed Health and Safety Receiver can step in to provide the solution to protect the community and occupants from such dangerous conditions. A Receiver can be appointed by the court to rehabilitate and preserve substandard commercial properties.

A Rents and Profits Receivership assists in the enforcement of a mortgage, deed of trust, or related assignment. A rents and profits receivership commonly occurs when a property owner defaults on a mortgage and the lender seeks the appointment of a receiver to protect the collateral while foreclosure commences. Deeds of trust typically provide for the appointment of a receiver and contain an assignment of rents provision to collect rents and preserve the property. A court-appointed receiver has the right to take control over and possess all collateral property subject to the deed or mortgage as directed by the court. A receiver is appointed by the court to collect and secure rents and to preserve and protect the property during a foreclosure.

Hooray a judgment as been entered! However, just because a decision has been made, the battle is not over yet. Now the phase of enforcing and collecting on that judgment begins. In many cases, a judgment debtor will never willingly satisfy a judgment. For this reason, a post-judgment Receivership is a great judgment enforcement remedy that can help recover money to pay the judgment. A post-judgment Receiver is appointed by the court and, for example, may be granted the authority to manage and take possession of the judgment debtor’s real and personal property to collect, lease, repair, or sell as the court directs. Courts have interpreted that a post-judgment Receiver is in fact working for the benefit of the judgment creditor that sought the appointment of the Receiver.

In California, a Health and Safety Receivership is an effective option to resolve code enforcement issues with residential and commercial properties. Health and Safety Receiverships commonly deal with substandard or abandoned properties when property owners fail to comply with code enforcement or when there is a threat to the health and safety of residents or the surrounding community. While receivership may not initially sound like a resource for illegally-operating marijuana facilities, the illegal sale of marijuana likely constitutes a nuisance pursuant to the California health and safety code and can be a threat to the health and safety of the surrounding community and/or businesses. The Receivership Remedy can resolve complex issues that arise with rogue marijuana dispensaries as dispensaries become more and more common and the industry continues to inflate.

The partition remedy in California addresses disputes between co-owners of property. Any person with an interest in real property in California may bring a partition action against a co-owner. The partition remedy is necessary when co-owners cannot decide how to handle jointly-owned property. Properties subject to partition include, but are not limited to, single-family residences, vacation homes, investment properties, commercial buildings, apartment buildings, and parcels of land.

A focus of my practice is dedicated to receivership matters. I am routinely appointed by California courts as a receiver. Specifically, I have acted as a health & safety code receiver, a rents & profits receiver, a post-judgment receiver and a partition referee. On August 26, 2014, I moderated and participated in a speaker panel at the San Diego County Bar Center presented by the San Diego Chapter of the California Receiver Forum. We were fortunate to have the Honorable Eddie C. Sturgeon speak on the panel.

A partition referee carries out a specific role in the context of a legal dispute between multiple individuals regarding real property. One or more parties will file a lawsuit that includes a partition cause of action. One aspect of the relief sought via the partition cause of action will be the appointment of a partition referee by the court. The party may nominate one or more particular partition referees, but ultimately, it is the court's decision as to who the court will appoint as the partition referee. The partition referee almost always has one single objective: sell the subject property at issue in the lawsuit and distribute the proceeds accordingly. A related task may be to manage and preserve the property while preparing for the sale, depending on the type of property.