Receivers, Special Fee Shifting Statutes: County’s Enforcement Fees And Costs In Obtaining Receivership Appointment And Remediating Hazardous Property Conditions Are Not Entitled To Super-Priority Status Along With Receivership Expenses

Claims Of Competing Lienholders Had To Be Considered With Respect To Division Of Property Sale Proceeds.

            In County of Sonoma v. U.S. Bank N.A., Case Nos. A155837/A157245 (1^st Dist., Div. 1 Oct. 8, 2020) (published), the appellate court affirmed a lower court’s order conferring super-priority status to property sale proceeds on a receiver’s financial lien and enforcement costs in a case where the County obtained appointment of the receiver to remediate hazardous/substandard conditions on real property.  The lower court also gave super-priority treatment to County’s enforcement costs under Health & Safety Code section 17980.6, which encompassed costs and attorney’s fees.  That latter determination was reversed on appeal, because the claims of competing lienholders needed to be considered along with County’s claims before divvying up property sale proceeds to these claimants.