City of Desert Hot Springs v. CA CFK CA4/2

CourtCalifornia Court of Appeal
DecidedMarch 23, 2026
DocketE082805
StatusUnpublished

This text of City of Desert Hot Springs v. CA CFK CA4/2 (City of Desert Hot Springs v. CA CFK CA4/2) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Desert Hot Springs v. CA CFK CA4/2, (Cal. Ct. App. 2026).

Opinion

Filed 3/23/26 City of Desert Hot Springs v. CA CFK CA4/2 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FOURTH APPELLATE DISTRICT

DIVISION TWO

CITY OF DESERT HOT SPRINGS,

Plaintiff and Respondent, E082805

v. (Super.Ct.No. CVPS2104940)

CA CFK, LLC, OPINION

Defendant and Appellant;

RICHARDSON GRISWOLD,

Receiver and Respondent.

APPEAL from the Superior Court of Riverside County. Kira L. Klatchko, Judge.

Affirmed.

Prometheus Civic Law and Matthew Sean Harrison for Defendant and Appellant.

Stream Kim Hicks Wrage & Alfaro, Theodore K. Stream, and Krystal N. Lyons

for Plaintiff and Respondent City of Desert Hot Springs.

1 Richardson C. Griswold, in pro. per.; and Jarrod Ready for Receiver and

Respondent.

Defendant and appellant CA CFK, LLC (CA CFK) purchased a dilapidated

property that was under receivership, and the property was sold to a third party after CA

CFK breached an abatement compliance agreement between it and plaintiff and

respondent City of Desert Hot Springs (the City). CA CFK appeals from the order

allowing the receiver to list the property for sale and the later order approving the sale. 1 We affirm.

I. BACKGROUND

A company called Yeh Dynasty owned a 98-room hotel located in Desert Hot

Springs (the property). In 2021, the City filed this lawsuit, suing Yeh Dynasty and its

owner Charles Yeh and seeking, among other things, the appointment of a receiver over

the property to oversee abatement. The City alleged that local gangs had “taken root” at

the hotel, “using it as a waystation for stolen vehicles, illegal firearms, and illegal drugs.”

Before filing suit, the City had issued a Notice of Public Nuisance and Order to Abate,

and the complaint sought appointment of a receiver pursuant to section 17980.7,

1 Undesignated statutory references are to the Health and Safety Code.

2 2 subdivision (c). The trial court appointed respondent Richardson Griswold as the

receiver.

The receiver sought authorization to list the property for sale. He stated that the

hotel could be rehabilitated, demolished, or sold, and that neither rehabilitation nor

demolition was financially feasible. As to rehabilitation, the cheapest bid he received

was for $4.5 million, but the most a lender would lend for rehabilitation was $3.4 million.

As to demolition, the receiver estimated that the bare land the property sat on was worth

less than the cost of demolishing the property. The trial court authorized the listing.

Later, the receiver sought confirmation of the sale to a buyer who submitted a $1

million bid. Before the trial court confirmed the sale, however, Yosef Suh, through his

company CA CFK, offered to purchase the property for $1.5 million. Suh stated that he

has known Yeh for many years and was familiar with the property’s history. The trial

court confirmed the property sale to CA CFK, and the sale closed in December 2022.

As part of the sale, CA CFK and the City signed a compliance agreement. The

agreement provided that CA CFK would abate the property and that CA CFK would be

bound by the court’s earlier receivership order, which generally ordered defendants (at

the time, just Yeh and Yeh Dynasty) to turn over possession of the property and

prohibited interfering with the receivership. The compliance agreement also contained

2 Section 17980.7 provides that “[i]f the owner fails to comply within a reasonable time with the terms” of an abatement order issued under section 17980.6, then under subdivision (c), “[t]he enforcement agency . . . may seek and the court may order, the appointment of a receiver for the substandard building.”

3 certain deadlines for the abatement work, such as a site inspection within 30 days of

closing and permit applications within 90 days of the site inspection.

Three months after the site inspection, CA CFK’s project manager requested a 90-

day extension from the City, which it denied. After the receiver noted CA CFK’s breach

of the compliance agreement to the court and sought further instructions, CA CFK and

the City signed an amendment to the compliance agreement. The amended agreement

contained the following terms, repeatedly stating that noncompliance would be deemed

material breaches:

“Buyer agrees to complete the following tasks according to the schedule as set

forth below:

“1. June 16, 2023—Buyer shall obtain all necessary permits, including but not

limited to a Demolition Permit, from the City to remove the exterior rock façade from the

building on the Property, install and maintain adequate landscaping, resurface and repair

the surface and features in the parking lot, and start demolition of all interior walls and

floors as-needed to allow a qualified engineer to conduct a complete structural analysis of

the building on the Property. Nothing in this Agreement shall be construed to guarantee

the Buyer any permits. The failure of the Buyer to secure permits or complete the tasks

described in this provision shall constitute a material breach of this Agreement. [¶ . . . ¶]

“3. August 16, 2023—Buyer shall submit a complete set of buildings plans to

rehabilitate the Property, including but not limited to, engineering, architectural,

mechanical, electrical, plumbing, Title 24 requirements. The Buyer must formally

4 submit said plans through City-approved procedures, and pay fees as required by the

City. The Buyer’s failure to submit said plans shall constitute a material breach of this

Agreement. The Buyer's submission of plans in a manner other than approved by the

City shall constitute a material breach of this Agreement. The Buyer’s failure to submit

complete or adequate plans shall constitute a material breach of this Agreement. The

City, in its sole discretion, shall determine whether the plans submitted by the Buyer, if

any, are complete and adequate, including for the purpose of ensuring the completion of

the Abatement Work.

“4. October 16, 2023—the Buyer must secure all necessary permits from the

City, as determined by the City in its sole discretion, to begin the Abatement Work. As

part of this process, the Buyer must complete any and all plan corrections as required by

the City, in its sole discretion. Nothing in this Agreement shall be construed to guarantee

the Buyer any permits nor to compel the City to issue any permits. The Buyer’s failure to

secure all necessary permits or complete plan corrections shall constitute a material

breach of this Agreement.”

CA CFK applied for the first of such permits on June 16, 2023, and the City issued

it the following month. After the receiver informed the trial court of the delay and noted

his concern that he did not believe CA CFK would meet the August deadline, the court

authorized the receiver to contact the engineers CA CFK hired to discuss abatement

plans.

5 Two months later, in September 2023 (i.e., after the August deadline had passed),

the receiver informed the court that CA CFK had not even executed its contracts with its

engineers yet.

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City of Desert Hot Springs v. CA CFK CA4/2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-desert-hot-springs-v-ca-cfk-ca42-calctapp-2026.