Case Number: EC049983    Hearing Date: July 18, 2014    Dept: NCB

8. EC049983
CITIZENS BUSINESS BANK v RIVERTON VILLAS, LLC
Motion for:
1. Order approving the receiver’s final report and account.
2. Order approving the fees requested by the receiver.
3. Order exonerating the receiver’s bond.
4. Order discharging the receiver.

This case arose from the Plaintiff’s claim that the Defendants failed to repay a loan. The Plaintiff claimed that the Defendant, Riverton Villas, LLC, had failed to repay a loan made for the purchase and construction of homes. The seller of the property, Alexis Gevorgian, trustee for the AMG & Associates Retirement Trust (“AMG”) agreed to carry back a note secured by a deed of trust. Alexis Gevorgian, on behalf of AMG, signed a subordination agreement with the Riverton Villas, LLC that subordinated AMG’s deed of trust to the Plaintiff’s deed of trust.
The general contractor, Haig Engineering & Construction, along with Mike Ismail, were managing members of Riverton. After a year of construction, Haig Engineering & Construction filed for bankruptcy and Riverton defaulted on the loan. The Plaintiff commenced this action by filing a complaint to foreclose on its deed of trust and to request the appointment of a receiver to manage the property.

The Court appointed Robb Evans & Associates LLC as receiver on July 17, 2009 for the property at 4605 and 4611 Riverton Avenue and at 10828 Hortense Street. The receiver’s purpose was to take possession of the property and to evaluate and determine what was necessary to complete any repairs or construction so that the property could be sold. The receiver has completed the work and now requests orders approving its final report, approving its fee request, exonerating its bond, and discharging it.

1. Final Report and Account
CRC Rule 3.1184 requires a receiver to submit a final report and account to obtain a discharge. The final account and report may be presented by noticed motion or by stipulation of all parties. The receiver has submitted its final report and account by noticed motion. No party has filed any opposition.
The final report is attached as untabbed exhibit A to the motion. A review of the final report and account reveals that the receiver inspected the property and obtained information regarding the repairs and construction needed. The receiver decided in October 2009 that a greater financial benefit would occur if five structures were completed and sold and the remaining property sold as is. However, the Plaintiff decided to defer any decision until the trial concluded. After the trial resulted in the Cross-Complainant Alex Gevorgian, as Trustee of the AMG & Associates Retirement Trust (“AMG”) obtaining a senior deed of trust, the receiver learned that AMG intended to complete a judicial foreclosure on the property. Since there is no need for repairs or construction, the receiver states that it has no additional duties.

The receiver has provided reports in untabbed exhibit 2. These indicate that its fees and expenses from July 17, 2009 to March 31, 2014 were $40,989. In addition, asset preservation expenses were $53,013. Total expenses for the receivership are $102,892. The Plaintiff has advanced $78,629 to the receivership. A balance of $20,658 remains owing to the receiver.

The receiver’s final report and account demonstrates that the purpose of the receivership has been completed. Further, no party has submitted any opposition papers to show any problems with the receiver’s work. Thus, the Court issues an order approving the final report and account.

2. Receiver’s Fees
Receivers are entitled to compensation for their own services. Venza v. Venza (1951) 101 Cal.App.2d 678, 680. Generally, the costs of a receivership are paid from the property in the receivership estate. Andrade v. Andrade (1932) 216 Cal. 108, 110.
The receiver states that the remaining unpaid fees are $20,658 and the receiver seeks approval for the payment of this amount. The Plaintiff will be paying the unpaid amount. No party has filed any opposition to object to this amount.
Therefore, the Court issues an order approving the payment of $20,658 in unpaid fees and expenses to the receiver from the Plaintiff.

3. Exoneration of Bond and Discharge of Receiver
The receiver filed an undertaking on July 21, 2009. Since the Court approves the final report and accounting, the Court orders the receiver’s bond exonerated and the receiver discharged.

Accordingly, the Receiver’s motion is granted and the following orders will issue:
1) Order approving the final report and account;
2) Order approving the receiver’s fees;
3) Order exonerating the receiver’s bond; and
4) Order to discharge the receiver from any further duties.