Knypstra vs. Sheldon

court has the authority under California law to authorize a super-priority lien (see, e.g., County of Sonoma v. Quail (2020) 56 Cal.App.5th 657, 664), Petitioner has not cited any authority requiring the court to grant super-priority status to any lien the receiver obtains.

Given Petitioner has shown a receiver for the Property is warranted and Bank of America has offered no authority specifically establishing the court is unable to appoint a receiver in this instance, the court will GRANT the petition to appoint a receiver. The court hereby appoints Amanda R. Wheeland to act as receiver over the Property. Ms. Wheeland is authorized to exercise the powers and duties enumerated in Health and Safety Code section 17980.7, subdivision (c)(4).

The court, however, declines to issue an order pertaining to the priority of liens at this time. Given Petitioner’s representation in the reply that the issue of priority can likely be resolved by the parties, the parties are ORDERED to meet and confer on the issue of priority. Petitioner is cautioned the receiver ultimately may not be granted a super-priority lien if the parties are unable to reach an agreement. Similarly, Bank of America is cautioned the receiver may later be granted super-priority status if the parties are unable to reach an agreement. The court reserves the ability to determine the priority of any certificate on a future motion.

The court will set a status conference at which time the parties shall inform the court of the progress of their discussions. At the status conference, the court also will expect an update regarding the status of the Property. The receiver is ordered to file and serve a status report at least 10 days before the status conference. The status conference is scheduled for Monday, October 12, 2026, at 9:30 a.m., in Department C23.

Counsel for Petitioner is to submit a proposed order in accordance with this ruling.

Counsel for Petitioner is ordered to give notice.

4. Knypstra vs. CONTINUED TO OCTOBER 29, 2026, as stated in ex Sheldon parte application and order signed by the court on August 2, 2026

5. Reed's Inc. vs. Before the court is the petition of petitioner Reed’s, Inc. California (Petitioner) to confirm arbitration award. Respondent California Custom Beverage, LLC (Respondent) filed an opposition to the petition in which Respondent asks the