Case Number: GS014444    Hearing Date: August 22, 2014    Dept: A

City of South Pasadena v Winters

MOTION FOR AUTHORIZATION TO LIST PROPERTY and to Remove items of personal property

Item: 24
Case: GS014444
Date: 8/22/14

RELIEF REQUESTED:
Order authorizing Receiver to list real property for sale.

DISCUSSION:
This case arises from the Plaintiff’s petition for an order to abate a substandard building and for the appointment of a receiver to manage the property until it could be repaired.

This hearing the Receiver’s motion for an order authorizing him to list the receivership property at 1827 Bushnell Avenue, South Pasadena, CA, for sale with Elite Properties Realty for $595,000. Under CCP section 568.5, a receiver may, pursuant to an order of the Court, sell real or personal property in the receiver’s possession upon the notice and in the manner prescribed by CCP sections 701.510 to 701.680, which describe how a levying officer may sell the property of a judgment debtor. In addition, under CCP section 568.5, such sales are not final until confirmed by the Court.

1. Good Cause for Sale of Property
The Receiver provides the following facts in his declaration to demonstrate that there is good cause to sell the property. The Receiver states in paragraph 10 that he will complete all Court-ordered remediation work at the property within the next few days and that he expects to obtain final sign-offs from the City of Pasadena. The Receiver states in paragraph 11 that the fees and costs associated with the remediation and the extensive litigation arising from this case are the following:

1) $30,113.56 for his fees through July 24, 2014 plus another $20,000 to wind-up the receivership, file the final report and account, attend the hearing, and complete the receivership;
2) $4,992.81 to pay remaining amounts to the contractor; and
3) $100,000 to repay a Court authorized bridge loan to South County Bank.

The Receiver states in paragraph 13 that he attempted to recover the fees and costs from the Respondent, Diane Alari to avoid the sale of the property. The Receiver states in paragraph 20 that the Respondent can avoid the sale by paying approximately $160,000 to the Receiver and any attorney’s fees to the City of Pasadena. The Receiver indicates in paragraph 13 that Diane Alari has not made any commitment to pay the fees and costs.
The Receiver states that a sale of the property is the only manner by which the fees and costs will be paid. Further, the receiver notes that the sale is also the only manner by which the Petitioner, City of South Pasadena, will recover its attorney’s fees and costs.

This evidence demonstrates that there is good cause to authorize the Receiver to list the property for sale because this is the only manner to ensure that the Receiver, the contractor, the bank, and the City of South Pasadena will be paid for the fees and costs that they have incurred to remediate the Respondent’s property.

Accordingly, the Court will authorize the Receiver to list the property for sale.

The Receiver states in paragraphs 14 and 15 that based on the broker’s opinion of the value of the property, he will list the property for sale at $595,000 (copy of broker’s opinion of value in exhibit 4). The Receiver indicates that it will be necessary to install fixtures and appliances to maximize the value of the property and that the contractor has agreed to perform this work at no additional cost. Further, the Receiver indicates that the listing agreement will indicate that the sale is subject to the Court’s confirmation and possible overbid and that the sale will be a where is/as is sale without any representations or warranties (see copy of listing agreement in exhibit 5). The Receiver states that the payment will include a 5% sale commission.

2. Request for Authorization to Remove Personal Property
The Receiver requests authorization to remove the remaining items of personal property in order to list and show the property. The Court previously issued an order on October 1, 2013 that authorized the Respondent to remove her personal property (copy of order in exhibit 2). Further, the Court authorized the Receiver in the October 1, 2013 order to discard any remaining personal property.
Accordingly, the Court will authorize the Receiver to remove the remaining personal property.

RULING:
1. Authorize the Receiver to list the real property for sale.
2. Authorize the Receiver to remove any remaining personal property.