Department 58

Hearing Date: June 24, 2024

Case Name: Devote v. Best Performance Tire and Service, LLC

Case No.: 22STCV10882

Matter: Motion to Enforce Settlement Pursuant to Code of Civil Procedure Section 664.6

Moving Party: Plaintiff Steven Devote

Responding Party: None

Tentative Ruling: The Motion to Enforce Settlement and Attorney’s Fees is granted in part and denied in part.

This is an employment dispute involving wage and hour claims and employment discrimination claims under FEHA. On March 30, 2022, Plaintiff Steven Devote filed a Complaint against Defendants Best Performance Tire and Service, LLC, Best Performance Tire and Complete Service, LLC, Sanjeet Singh Veen, and Minoo Mehta.

On March 8, 2024, Plaintiff filed a notice of settlement of entire case.

Plaintiff now moves to enforce the settlement as a judgment and also seeks $1,980 in attorneys’ fees and $115 in costs against Defendant Best Performance Tire and Service, LLC.

No opposition has been filed.

DISCUSSION

Motion to Enforce Settlement

Plaintiff asserts that Defendant Best Performance Tire and Service, LLC (Best Performance) failed to comply with the terms of the parties’ Settlement. Plaintiff requests the Court to enter judgment against Best Performance in the amount of $17,595 pursuant to Code of Civil Procedure section 664.6.

The Court is authorized to enter judgment pursuant to the stipulated settlement. (Code Civ. Proc., § 664.6.) In reviewing a motion to enforce a settlement, the Court determines “whether the parties entered into a valid and binding settlement.” (Hines v. Lukes (2008) 167 Cal.App.4th 1174, 1182.) “A settlement is enforceable under section 664.6 only if the parties agreed to all material settlement terms. [Citations.] The court ruling on the motion may consider the parties’ declarations and other evidence in deciding what terms the parties agreed to, and the court’s factual findings in this regard are reviewed under the substantial evidence standard. [Citations.] If the court determines that the parties entered into an enforceable settlement, it should grant the motion and enter a formal judgment pursuant to the terms of the settlement.” (Id. at pp. 1182-1183; see also Osumi v. Sutton (2007) 151 Cal.App.4th 1355, 1357 [“Strong public policy in favor of the settlement of civil cases gives the trial court, which approves the settlement, the power to enforce it”].)

Strict compliance with the statutory requirements is necessary before a court can enforce a settlement agreement under section 664.6. (Sully-Miller Contracting Co. v. Gledson/Cashman Construction, Inc. (2002) 103 Cal.App.4th 30, 37.) The party seeking to enforce a settlement “must first establish the agreement at issue was set forth ‘in a writing signed by the parties’ (§ 664.6) or was made orally before the court. [Citation.]” (Harris v. Rudin, Richman & Appel (1999) 74 Cal.App.4th 299, 304 [holding that a letter confirming the essential terms of a settlement agreement was not a “writing signed by the parties” sufficient to satisfy the requirements of Section 664.6].)

Plaintiff’s counsel, Joseph Toubbeh, submitted a declaration in support of the motion to enforce the Settlement Agreement. The Settlement Agreement between Plaintiff and Best Performance was entered into orally before the Court on March 7, 2024. (Toubbeh Decl., ¶ 3, Ex. A [Minute Order].) Under the terms of the Settlement, Defendant Best Performance was obligated to pay the settlement amount of $17,000.00 in installment payments. (Toubbeh Decl., ¶ 3.) The first installment payment of $1,500.00 was due payable to Plaintiff on March 18, 2024, and subsequent installments of $1,200.00 are due payable to Plaintiff on the 15th day of each month thereafter.[1] (Toubbeh Decl., ¶ 3.)

Counsel represents that although Defendant paid the first payment obligation of $1,500, Defendant has failed to make any payments thereafter. (Toubbeh Decl., ¶¶ 5-12.) Thus, as of April 15, 2024, Defendant Best Performance has not submitted any payments as required under the Settlement Agreement.

Defendant Best Performance did not file an opposition to this motion and does not challenge Plaintiff’s assertions.

The court finds that the Settlement Agreement is valid and binding. Defendant does not dispute that it entered into the Settlement Agreement, any of its terms, or that it has failed to make timely payments. Therefore, Defendant Best Performance is in breach of the Settlement Agreement. The motion is granted and the terms of the parties’ settlement will be entered as a judgment.

Additionally, Plaintiff requests prejudgment interest at 10% per annum retroactive to the date of the Settlement Agreement, less any payments made by the Defendant prior to the entry of such judgment. This request is improper as the date of the Settlement Agreement is not the date of the breach of the Settlement; Plaintiff is only entitled to interest from the date of the breach – April 15, 2024. (Civ. Code, § 3289.)

Request for Attorneys’ Fees and Costs

Plaintiff also seeks an award of attorney’s fees in the amount of $1,980 and costs of $115.

With respect to attorney fees, Plaintiff has not provided the jurisdictional basis for the recovery of attorney fees in this case. Attorney fees are recoverable in an action when authorized by contract, statute, or law. (Code Civ. Proc., § 1033.5, subd. (a)(10).) In this case, judgment was entered according to the parties' oral contractual agreement, which did not include an attorney fee provision. Thus, there is no basis for the recovery of attorney fees.

However, Plaintiff’s request for costs in the amount of $115 is granted. (Code Civ. Proc., §§ 1032, 1033.5.)

CONCLUSION

The motion to enforce the Settlement Agreement pursuant to Code of Civil Procedure Section 664.6 is granted in part and denied in part. The Court will enter judgment pursuant to terms of the March 7, 2024 Settlement Agreement in the amount of $15,500 plus costs of $115 and prejudgment interest accruing at 10% from the date of April 15, 2024. The request for attorney fees is denied.

[1] Plaintiff notes that the Minute Order inaccurately states the installment payments as $1,000.00 each.