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Failing to properly and safely maintain a motel can bring about serious consequences, including the revocation of a motel operating license. In this blog, we’ll discuss some of the common motel violations and substandard conditions and when a receivership may be necessary to protect the safety of the community. 

The coronavirus pandemic has flooded people’s minds with unquestionable doubts and uncertainty. For most, life and work have come to a complete and unexpected halt. The economy has plummeted, forcing countless businesses to temporarily close thus leaving numerous people out of work. For businesses lucky enough to keep their doors open are suffering at the hands of a reduced workload. The pandemic has caused, and continues to cause, distressed business owners and corporate shareholders to restructure and adapt to these challenging times. Big and small companies alike are trying to avert insolvency and utilize various relief options to mitigate the hardships. Unfortunately, we fear that we are still in the beginning stages of these struggles with no definite end in sight, and the somber truth is that while some companies will sustain, many others will not. For those that cannot, a Court-Appointed Receiver can help ease the difficult process of liquidating company assets and restructuring corporate frameworks.

For nearly a decade, the City of Banning had to endure the challenges brought on by six unfinished commercial buildings spread over 9 acres of land located just off the 10 Freeway. The problem wasn’t necessarily that the buildings were unfinished, but rather that the unfinished buildings had been overrun by transients and squatters taking up residency within these structures resulting in hundreds of violations of State and local laws, numerous fires, hazardous conditions, and an accumulation of garbage and debris. What was once a place of potential future economic growth and development for the City of Banning, had quickly become more than just an eyesore, but a dangerous threat to the health and welfare of the community.

For years, California Cities and Counties have faced a conundrum when attempting to have a Receiver appointed for substandard properties. Previously, the California Health and Safety Code § 17980.7(c) required an enforcement agency to provide a “3 Day Notice” notifying a Property Owner that the agency intended to petition the Court to have a Receiver appointed. Then when filing the petition with the Court, proof that the “3 Day Notice” had been served must be included with the petition.

By Neil Sheaffer

By Neil Sheaffer