NATURE OF PROCEEDINGS: Hearing on Plaintiff's Motion to Enforce Settlement Agreement

 

Plaintiff's Motion to Enforce Settlement Agreement is granted.

 

BACKGROUND

Plaintiff Marvin Zuniga filed this action against his former employer, The ADU Guys.com, Inc., and Oscar Albillo (Defendants), alleging various wage and hour violations individually and as a Private Attorney General Act (PAGA) claim. This action was previously dismissed following the Court’s entry of a stipulation filed by the parties, which settled Plaintiff’s claims against Defendants. As part of this settlement, Defendants were required to make monthly payments to Plaintiff or face entry of a stipulated judgment against them. Plaintiff now moves the court to vacate the dismissal of this action and enter judgment against Defendants, claiming they failed to make the monthly payments required by the parties’ agreement. Defendants filed an unresponsive opposition seeking a continuance to provide them with time to obtain legal counsel.

 

LEGAL STANDARD

Code of Civil Procedure section 664.6 provides a summary procedure that enables judges to enforce a settlement agreement by entering a judgment under the terms of the parties’ settlement. In particular, the statute provides:

(a) If parties to pending litigation stipulate, in a writing signed by the parties outside of the presence of the court or orally before the court, for settlement of the case, or part thereof, the court, upon motion, may enter judgment pursuant to the terms of the settlement. If the parties to the settlement agreement or their counsel stipulate in writing or orally before the court, the court may dismiss the case as to the settling parties without prejudice and retain jurisdiction over the parties to enforce the settlement until performance in full of the terms of the settlement.

(b) For purposes of this section, a writing is signed by a party if it is signed by any of the following:

(1) The party.

(2) An attorney who represents the party.

(3) If an insurer is defending and indemnifying a party to the action, an agent who is authorized in writing by the insurer to sign on the party’s behalf. This paragraph does not apply if the party whom the insurer is defending would be liable under the terms of the settlement for any amount above the policy limits.

Code Civ. Proc., § 664 (a)-(b).

 

ANALYSIS

I. Continuance

As an initial matter, the Court denies Defendants’ request for a continuance.

 

II. Breach of Settlement Agreement

On January 29, 2024, the parties signed and executed a written Settlement Agreement. Brotman Decl., Ex. A. On February 1, 2024, the Court signed an order effectuating the joint stipulation pursuant to Code of Civil Procedure section 664.6. Brotman Decl., Ex. B. The settlement agreement provided for the resolution of Plaintiff’s claims in exchange for Defendants’ payment of $60,000.00 in thirteen installments. Two payments totaling $10,000 were due thirty days from the Effective Date, and the remainder was to be paid in monthly payments of $4,545.45 beginning on March 1, 2024. The settlement agreement specifically provides that “[p]ursuant to California Code of Civil Procedure § 664.6 the court shall retain jurisdiction to enforce the terms of this Agreement.” Id. at ¶ 24. On February 13, 2024, Plaintiff requested, and the Clerk entered, dismissal of the individual causes of action (causes of action 1 through 10) with prejudice. On February 28, 2024, the Court dismissed the PAGA causes of action (causes of action 10 through 21) without prejudice.

Under the terms of the Settlement Agreement, the Effective Date occurred after Plaintiff delivered the signed agreement and signed W-9 forms for Plaintiff and his attorney Id. at pp. 2-3. Plaintiff’s counsel provided the appropriate W-9 forms on February 29, 2024. Therefore, Defendant was required to make payments totaling $10,000 by March 1, 2024. Defendants made timely payments of $3,000 and $7,000 on February 28, 2024, and March 1, 2024, respectively. However, Defendants failed to make the $4,545.45 payment, which was also due on March 1. Defendants made only three payments of $4,545.45, on April 1, 2024, May 30, 2024, and July 30, 2024. Defendants failed to make any payments after July 30, 2024. On August 8, 2024, Plaintiff sent written notice by email to Defendants that they were in default on their monthly payment obligations. Brotman Decl., Ex. J. Plaintiff now moves to vacate the dismissal of this action and enter judgment against Defendants under the terms of the parties’ settlement agreement.

Plaintiff represents Defendants made payments totaling $23,636.35. Deducting these payments from the $60,000 owed to Plaintiff under the Settlement Agreement results in an outstanding balance of $36,363.65. Accordingly, the Plaintiff’s motion is granted, and the Court will enter judgment against Defendants for the principal amount of $36,363.65.

 

Attorney’s Fees

Plaintiff also seeks to collect $6,825.00 in attorneys’ fees related to this motion. While the Settlement Agreement permits the collection of attorney’s fees, the Court finds this amount excessive. This straightforward motion should not have required two attorneys to spend a combined fifteen hours preparing and arguing it. The Court awards attorney’s fees in the reduced amount of $1,285, reflecting two hours billed at $395 and 1 hour billed at $495.

 

CONCLUSION

Plaintiff's Motion to Enforce Settlement Agreement is granted. The Court awards attorney’s fees in the reduced amount of $1,285.