Stewart

The State of California acting through the Department of Employment and the State Board of Equalization, hereinafter referred to as the State, appeals from an order of the Superior Court of Riverside County which approved, allowed and settled the final account of the Receiver, John Gregory Stewart, hereinafter referred to as the Receiver, and exonerated his bond.

This order was made by the court despite the State’s objections and a request for a surcharge even though the admitted facts established that the Receiver failed to pay trust funds obtained and taxes incurred during the receivership.

The Steak Ranch and Waterfalls Hotel were in financial difficulties. Mr. Stanley T. Spiegelman was appointed Receiver. He served but a short time and, by stipulation, was discharged and respondent, John Gregory Stewart, took his place. Mr. Stewart was appointed upon the same terms and conditons as Mr. Spiegelman. His order of appointment stated, in part: 11 That said Receiver, subject to further Order of this Court, shall operate and conduct the business ... in ordinary and usual course, . . . and the said Receiver is authorized to employ . . . employees . . . and to purchase . . . supplies…