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

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…