California Palms sold for $ 4 million at Sheriff’s Sale – Business Journal Daily

YOUNGSTOWN, Ohio – The owner of the California Palms Addiction Recovery Campus is appealing a sheriff’s sale of the property for $ 4 million to the Los Angeles-based Pender Capital Asset Based Lending Fund.

Mahoning County Auditor’s documents show the sale closed on April 2 and the property was sold during the sheriff’s sale. This sale is the latest development in a dispute between the owner of the rehabilitation center, Sebastian Rucci, and Pender Capital.

The case is on appeal and California Palms “is making progress with this process,” Rucci said in an email to the Business Journal. Rucci maintains that the sheriff’s sale did not comply with “multiple legal protections,” he said.

“We also respectfully believe that no lender has ever filed a foreclosure when their complaints admit they hold more than a year of interest, refuse to apply that to the loan, and refuse to return it,” Rucci said. . “As of this writing, we have had no hearing in this case. We will continue to make progress in the legal process which we believe is not finished.

“We are confident that the courts will not allow the foreclosure under these facts. Instead, in Ohio a lender cannot file for foreclosure without first providing that the loan is in default, we have the opposite, the lender’s own words confirming that we were not in default.

On January 12, California Palms sued Pender Capital, claiming the loan was usury, he said.

Last month, California Palms filed summary judgment over Pender Capital’s claims.

Meanwhile, on March 18, the Mahoning County Court of Common Pleas dismissed California Palms’ motion to quash the sheriff’s sale. The court also dismissed a motion to stay the execution of a foreclosure judgment pending resolution of an appeal.

On March 17, the court issued a confirmation order for the foreclosure sale and distribution of the property. The next day, California Palms appealed the case to the Seventh District Court of Appeals.

The court case concerns a $ 4 million commercial loan that Rucci contracted with Pender Capital in March 2018. Rucci sued Pender Capital for breach of the loan. Pender then seized the property, prompting Rucci to file a counterclaim disputing the amount of the debt.

The court ruled that Pender Capital’s foreclosure motion was “well received and should be granted.”

Rucci said in his email that California Palms is still in business providing long-term care to 90 clients. The drug and alcohol rehab center employs 48 people, he said.

Associated coverage:

July 18, 2020 | Rucci’s California Palms Treats Addicts With Confidence

Copyright 2021 The Business Journal, Youngstown, Ohio.

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