James B Hart vs Cement 1031 LLC et al

Case Number

Case Type Civil Law & Motion Hearing Date / Time Fri, 06/05/2026 - 10:00 Nature of Proceedings CMC; Appointment for Receiver/Preliminary Injunction Tentative Ruling For the reasons set forth herein, the application of plaintiff James B. Hart for appointment of a receiver, and for issuance of a preliminary injunction in aid of a receiver, is denied.

Background: (Note: The following background is intended to provide a sufficient description to understand the basis for the court's decision and is not intended to be comprehensive. The court has reviewed all of the evidence and arguments of the parties in reaching its ruling herein and has relief only upon admissible evidence. Also, the public redacted version of the supplemental opposition declaration of Tadd McKenzie was filed twice, the second time erroneously in place of a public redacted version of the supplemental opposition declaration of Barry Brand.)

Defendants Cement 1031, LLC (Cement), Pacific Dutch Group, LLC (PDG), JJ Agriculture, Inc. (JJ Agriculture), New Horizon Farming, Inc. (New Horizon), Primetime Farms, Inc. (Primetime), and Arroyo Verde Farms, Inc. (Arroyo), (collectively, Borrowers) are engaged in the business of cultivating, packaging, and selling marijuana and marijuana products. (Hart decl., dated May 5, 2026 [Hart decl. 1], P. 2.)

On April 20, 2023, Cement entered into a promissory note (Original Note) evidencing a loan by plaintiff James B. Hart (sometimes, Lender) in the original principal amount of $1 million. (Hart decl. 1, P. 6 & exhibit 1.)

The Original Note provided that Cement was required to make monthly interest-only payments in the amount of $20,000, with the principal amount and any accrued and unpaid interest to be repaid on or before its maturity date of July 2023. (Hart decl. 1, P. 7 & exhibit 1.)

Defendant Barry Abraham Richard Brand (sometimes, Guarantor) entered into a Guaranty and Subordination