City of Sierra Madre v. SunTrust Mortg., Inc.

*651 INTRODUCTION

This is the second appeal before us involving a public nuisance created by Jeffrey *121 M. and Taryn N. Hildreth (the Hildreths) on their residential property in Sierra Madre. (See *652 City of Sierra Madre v. Hildreth (Dec. 26, 2018, B281729), 2018 WL 6787331 [nonpub. opn.].) Because the Hildreths refused to abate the nuisance, the City of Sierra Madre (City) brought the present action against them and their mortgage lender, appellant SunTrust Mortgage, Inc. (SunTrust), and sought the appointment of a receiver to undertake the remediation. SunTrust did not object to the appointment of the receiver or the remediation plan, but when the receiver borrowed $250,000 to fund the remediation work, SunTrust objected to the issuance of the lien securing that loan because it had priority over SunTrust's preexisting lien. The receiver and real party in interest in this appeal sought approval for the super-priority lien because no lender would loan funds without it. SunTrust appeals the court's order authorizing the super-priority lien.

SunTrust's primary argument is that Health and Safety Code section 17980.7 -a statute authorizing the appointment of a receiver in cases…