People Ex Rel. Strumpfer v. Westoaks Investment 27

This appeal involves what appears to be a question of first impression concerning a statute that addresses the cancellation of penalties imposed when property taxes are not timely paid. The case was filed by the State of California, by and through its Commissioner of Corporations, and is based on the state’s allegation that investors in certain real property limited partnerships were defrauded on a massive scale. The receiver who was appointed to oversee the assets involved in the case sought the cancellation of real property tax delinquency penalties, paid by certain of the limited partnerships to Los Angeles County and Ventura County, so that the delinquency charges could be refunded to the receivership estate. When those counties denied the receiver’s request, he filed motions with the trial court, on behalf of one of the limited partnerships, for an order directing the counties to cancel the charges. Subsequently, one of the other limited partnerships moved for such relief on its own behalf as to Ventura County. Ultimately Los Angeles County (Los Angeles) settled with the receiver, but Ventura County (Ventura) did not.

The receiver’s motions for relief were based on…