Judge: Christopher K. Lui, Case: 20STCV28573, Date: 2024-08-21 Tentative Ruling

Case Number: 20STCV28573    Hearing Date: August 21, 2024    Dept: 76

This is an insurance subrogation action seeking to recover from the driver who caused damages to Plaintiff’s insured, which caused Plaintiff to pay policy benefits to the insured.

The parties settled the case. However, Defendant has failed to make all payments required under the settlement agreement. Plaintiffs now bring a motion pursuant to Civ. Proc. Code, § 664.6 to enforce the settlement.

TENTATIVE RULING

Plaintiff State Farm Mutual Automobile Insurance Company’s  motion to vacate the judgment entered on October 7, 2021 is GRANTED. A new judgment in the amount of $15,993.74 is to be entered, for the principal amount of $15,287.61, plus $706.13 in prejudgment interest. Pursuant to the settlement agreement, Plaintiff waived costs and attorney’s fees.

ANALYSIS

Motion To Enforce Settlement Agreement

Discussion

Plaintiffs brings a motion pursuant to Civ. Proc. Code, § 664.6 to enforce the settlement on the grounds that the Defendant has breached the Settlement Agreement by failing to make all payments as required under the agreement.

Defendant has only made $1,700 in payments to Plaintiff, although he was required to pay Plaintiff a total of $3,500.00 by a $100.00 down payment upon the signing of the Settlement Agreement, and no later than 10/01/2021, and then in installments of $100.00 on the first of each calendar month thereafter until the full balance of $13,499.00 was paid. (See Declaration of Richard L. Mahfouz II, ¶¶ 9 – 10; Exh. A.)

Pursuant to the Settlement Agreement, Defendant is in default for failing to make the required payment on the first of each month. Defendant had 10 days to remedy the default after Plaintiff’s attorney gave written notice of the default. Attorney for Plaintiff provided written notice of the default to Defendant by sending Past Due Notices on 11/8/2023, 1/29/2024, and 3/01/2024. (Mahfouz Decl., Exhibit B.)

Plaintiff requests that the Court judgment totaling $18,336.56 against Defendant, pursuant to California Code of Civil Procedure § 664.6 and 1032, as Defendant has failed to comply with the terms of the Settlement Agreement. This is calculated by crediting the $9,999.00 payment made by Interinsurance Exchange on 10/26/21 and the $1,700 payment made by Defendant toward the $26,986.61 judgment to be entered upon default, (Mahfouz Decl., ¶¶ 7-9) which leaves a principal balance of $15,287.61, plus pre-judgment interest of $1,245.97 (7% per annum from the default date of 8/1/23), plus $603.39 in costs and $1,199.95. (Mahfouz Decl., ¶ 12.)

The Settlement Agreement provides that each side shall bear their own costs and attorney’s fees relating to this matter, “except as stipulated above.” The Settlement Agreement does not otherwise provide for Plaintiff’s recovery of costs and attorney’s fees in the event of an uncured default of the Settlement Agreement. As such, Plaintiff is  not entitled to recover costs and attorney’s fees, only prejudgment interest pursuant to Civil Code, § 3287(a). 

Prejudgment interest on the $15,287.61 balance at 7% per annum is $2.93 per day from 8/1/23 to 3/29/24 (241 days) for a total of $706.13 in prejudgment interest. As such,, the total judgment to be entered is $15,993.74.

Although Plaintiff requests that the Court vacate the dismissal, this is not necessary, as the Court expressly reserved jurisdiction. (Civ. Proc. Code, § 664.6.) The parties entered into a written settlement agreement. (Mahfouz Decl., Exh. A.) Defendant personally signed the settlement agreement.

The motion to vacate the judgment entered on October 7, 2021 is GRANTED. A new judgment in the amount of $15,993.74 is to be entered, for the principal amount of $15,287.61, plus $706.13 in prejudgment interest. Pursuant to the settlement agreement, Plaintiff waived costs and attorney’s fees.