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Judge Jeffrey B. Barton Puts Receivers "on the bench" in a Lively Teaching Program Plus Selling Free & Clear of Liens Debate Caps San Diego Seminar By Dunfee, Gordon & Rubin, Stacy* On September 18, 2012, the San Diego Chapter of the California Receivers Forum held its annual half-day education program at the Thomas Jefferson School of Law in San Diego. The first part of which was entitled “Do’s and Don’ts in My Courtroom.” The chapter was thrilled to land such a prominent legal fixture for its keynote speaker: Honorable Jeffrey B. Barton, Civil Supervising Judge, San Diego County Superior Court. Justice Barton was introduced as not only one of the great legal minds in our judiciary and a prolific legal author, but also as a long time surfer who travels the world looking for the perfect barrel. Judge Barton gave a brilliant and captivating original (I repeat, original) presentation on the history of, the necessity for, and the foundation for, appointing receivers, and the dangers of receiverships. One of the creative aspects of Judge Barton’s keynote presentation was the lively, and encouraged, interaction with the crowd – quite unusual for a sitting judge to so engage the audience. The only caveat was that he could not discuss any current cases. He began this exercise with an example case. He placed the audience on the “bench,” and experienced receivers in the crowd, while quite interested, grimaced at his example of a troubling ex parte application for appointment of a receiver. It was fun for all who attended to chime in as the proposed order was discussed. The proposed order was silent on the requirement for the bond and the amount of the bond, but included the automatic right to an attorney without any details for the need. Additionally, there was a corporation proposed as the receiver, and – oh, guess what – no notice to opposing counsel or party. The Judge noted that the “emergency” requirement for the ex parte hearing was the non-payment on the underlying loan, which he commented was a fairly common cause for relief. However, the group then found out that the loan had been unpaid for nearly 16 months – a red flag for a judge that there is no emergency here. The Judge praised CRF for its professionalism in always working to keep the standards for all receivers at its highest point, noting that it is apparent that CRF consistently works to improve its ranks. Interestingly, he noted that he does not require a receiver to always be represented by an attorney when they come to court. However, he did caution all the attendees to be careful with ex parte communications with the judge or court staff. Perhaps the most interesting portion of the Judge’s keynote address was centered on the severe budget cuts to an already beleaguered court system. San Diego County Superior Court has an annual budget of $190 million that will be hit this year with a $34 million cut, in its 4th straight year of reduced budgets. The civil courts will be hit the hardest, due to constitutional protections afforded the criminal defendants. He noted that 87% of the Court’s annual budget is people, so there will be a lot of jobs lost. Out of the 22 Independent Calendar departments countywide, seven will close this year. Civil caseloads will literally double for all the judges who are already buried with mountains of cases. Judge Barton concluded by answering a
flurry of questions from the audience with fast paced unscripted answers
from His Honor. At the end, the audience enjoyed the interaction and
exhibited their appreciation for his time, energy, and efforts by a
rousing round of applause.
Receivers, counsel, business turnaround specialists, property managers, accountants, title and escrow professionals, bankers, and insurance specialists were among with the many attendees who participated with questions and comments from the audience throughout the presentation. The Thomas Jefferson School of Law hosted the half-day program on its beautiful, state-of the-art San Diego campus. The Chapter extends its sincere thanks to the Law School for making its facilities available for this special program. *Gordon Dunfee, Law Office of
Gordon Dunfee, is a member of the CRF San Diego Board of Directors and the
Acting President of the California Receivers Forum State Board of
Directors. He is a receiver and counsel to receivers. |