City of Riverside v. Horspool CA4/2

223 Cal. App. 4th 670
CourtCalifornia Court of Appeal
DecidedJanuary 16, 2014
DocketE051500; E053605
StatusUnpublished
Cited by42 cases

This text of 223 Cal. App. 4th 670 (City of Riverside v. Horspool 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 Riverside v. Horspool CA4/2, 223 Cal. App. 4th 670 (Cal. Ct. App. 2014).

Opinion

Opinion

RAMIREZ, P. J.

The City of Riverside (City) filed a nuisance abatement action as to property owned by William F. and Kelly Horspool, and sought the appointment of a receiver pursuant to Health and Safety Code section 17980 et seq. Defendant William F. Horspool (William) 1 appealed from the order appointing the receiver in case No. E051500, 2 but failed to obtain an undertaking on appeal. Kevin Randolph, in his capacity of receiver, obtained an order permitting the sale of the property to a party who rehabilitated the property after defendants frustrated his efforts to do so. A notice of appeal on behalf of both Horspools was filed in case No. E053605, from the order permitting the sale of the property and an order awarding the receiver extraordinary costs and fees. J.P. Morgan Chase Bank, the holder of the mortgage on the property, did not appeal.

On appeal, William raises 12 issues challenging the adequacy of the prelitigation notice of the proposed receivership, the appointment of the receiver, the propriety of the order for posting bond to challenge the appointment of the receiver, the entry of the defaults of both Horspools, the orders precluding them from opposing the receiver’s ex parte application to sell and the order permitting the sale of the property, and asserting error in allowing the receiver to sell the property for less than its fair market value, in precluding them from opposing the loan stripping effect of the sale of the *674 property, in awarding the receiver $114,000 in fees and costs, and in allowing the receiver to conduct a private sale of the property. We affirm.

BACKGROUND 3

On December 10, 2008, the City received a complaint regarding a vacant house on Mt. Vernon Avenue. A code enforcement officer conducted an aerial inspection of the property and observed a dilapidated roof. The following day, the officer inspected the property from a public right of way and observed the landscaping and house were in a condition of dilapidation and disrepair ranging from landscape maintenance issues, including structural maintenance issues, and fire hazards caused by overgrown and dried weeds, as well as accumulated dead leaves. The officer posted a notice of violation instructing defendants William and Kelly to remediate specified issues before December 30, 2008.

On December 30, 2008, the code enforcement officer reinspected the property and observed no changes or improvements. On January 8, 2009, an administrative civil penalties notice and order (ACPNO) was issued for violations of sections 6.14.020, subdivision B, 6.14.030, 6.15.020, subdivisions B, C, and 6.11.040 of the Riverside Municipal Code. Notice of the ACPNO was sent by mail to the property owners and interested parties on January 8, 2009. 4 William was personally served with the ACPNO on January 10, 2009. On February 18, 2009, the officer reinspected the property and observed the violations had not been corrected.

On March 5, 2009, a notice of the administrative civil penalties hearing was sent to the property owners and interested parties, seeking an order assessing administrative costs incurred. The notice was served by certified *675 mail to William and Kelly, as well as the banks having a security interest in the property. An attorney for defendants William and Kelly appeared at the hearing for defendants. After the hearing, an administrative order was issued assessing daily civil penalties against defendants.

On June 11, 2009, the Horspools filed for chapter 13 bankruptcy (it was converted to a chapter 7 bankruptcy on June 29, 2009, case No. 6:09-bk-22815-PC) and obtained a stay, preventing the City from moving forward with the receivership. Between April 1 and September 29, 2009, the code enforcement officer reinspected the property once per month, but no changes or improvements were observed.

On October 2, 2009, another notice of hearing was served by certified mail on defendants regarding a new ACPNO. On November 6, 2009, an administrative hearing order was issued assessing daily civil penalties in the amount of $500 a day. Additionally, the property was determined to be a public nuisance.

On April 20, 2010, the City obtained relief from the automatic stay in bankruptcy. On June 9, 2010, the City filed a complaint for nuisance abatement and an injunction, and a petition for appointment of a receiver, pursuant to Health and Safety Code section 17980.7. Proofs of service show the complaint was personally served on William. After three successive attempts to serve Kelly on different dates, substitute service was effected by leaving the summons and complaint with William, followed by mailing a copy of the summons and complaint to Kelly at her address.

On July 30, 2010, a hearing on the City’s motion to appoint a receiver was held. William personally appeared at the hearing (in propria persona) to request additional time to respond to the complaint. He represented to the court that he was in the process of refurbishing the property, although the City provided photographs taken the day before the hearing, which showed no improvements had been undertaken. The court agreed to postpone the hearing until August 2, 2010, on the condition William provide pictures showing significant improvement.

On August 2, 2010, the court held a hearing on the City’s motion for appointment of a receiver. William appeared with counsel and made a general appearance. William’s counsel informed the court William could not do anything to the property due to the fact he had filed for bankruptcy. The City demonstrated it had obtained an order exempting these proceedings from the automatic stay by the bankruptcy court. The court granted the City’s motion and appointed Kevin Randolph as receiver.

On August 3, 2010, a notice of appeal was filed by William. On August 6, 2010, William filed an ex parte motion for an order fixing the amount of the *676 appeal bond or dispensing with the bond pending appeal. On August 13, 2010, the court ordered an appeal bond in the amount of $80,000 to be posted within 10 days. No bond or undertaking on appeal was posted.

On the same day William filed his first appeal, he also filed a notice of related case, Horspool v. City of Riverside. Another action, apparently seeking an injunction against the City to prevent it from proceeding with the receivership, was also filed in superior court under case No. INC080588. The trial court in the injunction action recognized that the action was in response to the appointment of the receiver in the instant action by another judge and refused to grant a temporary restraining order on August 24, 2010, informing William that the pending appeal was the appropriate remedy.

On August 20, 2010, the receiver submitted his initial inventory of property and initial report. The report indicated that William had refused to allow access to the property, under the belief that the appeal automatically stayed the receivership.

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Cite This Page — Counsel Stack

Bluebook (online)
223 Cal. App. 4th 670, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-riverside-v-horspool-ca42-calctapp-2014.