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Will the Health & Safety Receivership Impact Your Lien? Not if The Ryan Firm is on Your Team!

Updated: Aug 23, 2023

The super-priority nature of receivership liens can rob a lender of its entire security in a Health & Safety Code Violation Receivership. Working proactively with the receiver, while championing the rights of its lender clients, The Ryan Firm minimizes risk and maximizes recovery in these thorny matters.

The Ryan Firm was retained by a large commercial lender (“Lender”) when it was named in a Health and Safety Receivership action by a Southern California City (“City”) concerning commercial property in which it held a secured lien (“Property”). The borrower on this eight-figure note and deed of trust was allegedly conducting illegal operations at the property, but the City baselessly sued the Lender for active involvement in these illegal operations.

The Ryan Firm initially fought appointment of the receiver, but relented when it became clear that the receiver to be appointed would manage the Property better than the borrower. The Ryan Firm and its client worked cooperatively with the receiver to improve the Property’s condition, ultimately allowing the receiver to see the Lender as a positive participant in the process.

The litigation went from state court, into bankruptcy court, and back to state court – with the Ryan Firm adeptly managing the litigation from start to finish in each forum. The City, staring down a sanctions motion filed by Timothy Ryan and Michael Stoltzman, settled for a nominal sum. The Lender received a full payoff of its loan including default interest, attorney’s fees and the monies advanced to the City to settle the case. The Ryan Firm obtained this result within six (6) months of its entry into the case. A rolling stone gathers no moss!

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