Court appoints Stephen J. Donell receiver over stalled San Jose project

A Santa Clara County judge appointed Stephen J. Donell as receiver over a stalled development at 2375 and 2395 South Bascom Avenue in San Jose. The order gives Donell control of the property and related construction assets as the court seeks to preserve value and move the project toward resolution.

Why it matters: - The receivership puts a neutral court-appointed manager in charge of a stalled San Jose development that needs stabilization. - The order is meant to protect the asset, preserve value and keep the project from deteriorating further during the dispute. - Real estate receiverships can help untangle distressed projects with multiple stakeholders, financing issues and unfinished construction.

What happened: - The Superior Court of California for Santa Clara County appointed Stephen J. Donell as receiver over the property at 2375 and 2395 South Bascom Avenue in San Jose, California 95008. - The case is City National Bank v. RSF Calson I Propco, LLC, et al., Case No. 26CV497739. - The matter is pending before Judge Mark D. Flanagan at the Santa Clara County Superior Court Downtown Courthouse. - Donell is scheduled to take possession and control of the stalled development on Aug. 13, 2026. - Donell will have full possession, custody and control of the property and related construction assets.

The details: - The court order gives Donell access to personal property, contracts, permits, plans, drawings and receivables tied to the project. - Donell will work to stabilize the asset, preserve its value and advance the project toward resolution. - Donell has served as a court-appointed receiver and fiduciary in matters involving distressed real estate, construction problems, complex financing and multiple stakeholders. - Donell has served as a court-appointed receiver in state and federal courts across the United States since 1990. - His case history includes hundreds of matters involving real property, businesses, post-judgment enforcement, homeowners and commercial associations, construction completion, accounts receivable collections and collateral seizure. - In federal court, Donell has been appointed in enforcement actions brought by the U.S. Securities and Exchange Commission, the Federal Trade Commission and other government agencies in business and consumer fraud matters. - FedReceiver, Inc. describes itself as a nationally recognized receivership firm with decades of experience in complex real estate and business receiverships. - The firm says its work includes distressed real property, business liquidations, entertainment industry disputes, judgment enforcement and government regulatory actions. - FedReceiver also lists income-producing properties, Ponzi scheme recovery, construction completion, partnership dissolution, partition referee appointments and provisional director engagements among its services.

Between the lines: - The appointment signals that the court sees neutral control as the fastest way to protect the property while the dispute continues. - The case also shows how receiverships are used when construction stalls and ordinary project management is no longer enough. - Donell's background in construction completion matters and distressed assets appears to be a key fit for a development with unfinished work and competing claims.

What's next: - Donell is expected to assume control of the site and begin managing the property under the court's order. - The receiver's next steps will likely focus on securing the asset, reviewing project records and addressing the construction and financing issues tied to the development. - The case will continue under Santa Clara County Superior Court supervision.

The bottom line: - A Santa Clara County court has handed a stalled San Jose development to an experienced receiver, giving the project a court-supervised path toward stabilization and possible completion.