John Chiv: City of Eureka won and got judgement against Zephyr Hospitality including attorney fees and costs but now wants the judgement vacated

Feb 11, 2026

City of Eureka won and got judgement against Zephyr Hospitality including attorney fees and costs but now wants the judgement vacated

When I did these two posts on January 28 and 29 on Zephyr Hospitality, access was denied in the lawsuit filed by the City of Eureka.

Yesterday, I decided to check the case again. Court documents are now available. I do not have time right now to summarize or look into why access was denied. If it was on error or if a request to have the case initially be confidential.

You can read the unlawful detainer complaint filed December 2, 2025, the default judgement granted by Humboldt Superior Court Presiding Judge Kelly Neel on 12/26/25, the writ of posession issued on 12/29/25 and the City of Eureka's request to vacate entry of default and judgement filed on January 22, 2026. This is because the City of Eureka received notice of Zephyr's bankruptcy after the judgement. See page 2 of the City of Eureka's motion about why the City had to file this motion.

The City of Eureka's motion is scheduled for a hearing on 2/20/26.

This case is on the agenda under closed session for the next Eureka City Council meeting.

2/20/26: Motion to vacate granted. Deputy City Attorney Gregory Holtz present for City of Eureka, no appearance by Zephyr.