Podell

BACKGROUND

In November 2020, Grupo entered into a written management services agreement with MAG Wellness (MAG) under which Grupo would manage and administer MAG’s business, including operating its retail cannabis dispensary in Oakland. The agreement expressly provided it would terminate on May 24, 2021.

1 Grupo had ceased operations of the dispensary as of May 20, 2021, and on that day transported the cash remaining on the dispensary premises to Grupo’s facility in Salinas (hereafter, for consistency with the briefing, the disputed cash). On August 16, 2021, Steven Podell, a former employee, filed a complaint against MAG alleging two causes of action, for breach of contract and common counts, based on a failure to pay Podell wages. The complaint also sought a receivership. On August 23, the case was assigned for all purposes to the Honorable Delbert Gee. On October 6, Judge Gee entered an order appointing Kevin Singer as receiver over MAG. The order was based on a stipulation between Podell and MAG that recited the parties have agreed that the sale of MAG was in the best interest of all parties. It is worth noting that the declaration of Singer that was submitted to the court…