Judge Curtis A. Kin, Case 20STCV40677 2022-10-20 Tentative Ruling

Judge: Curtis A. Kin, Case: 20STCV40677, Date: 2022-10-20 Tentative Ruling

Case Number: 20STCV40677 Hearing Date: October 20, 2022 Dept: 72

MOTION FOR DETERMINATION OF

GOOD FAITH SETTLEMENT

Date: 10/20/22 (8:30 AM)

Case: Salvador Barrios v. Healthy Start-East LA, Inc. (20STCV40677)

TENTATIVE RULING:

Defendants Healthy Start-East LA, Inc., Daniel Tercero Neri, and Casa de Angeles Cal. Corp.’s Motion for Determination of Good Faith Settlement is GRANTED.

Defendants Healthy Start-East LA, Inc. (“Healthy Start”), Daniel Tercero Neri, and Casa de Angeles Cal. Corp. (collectively, “Healthy Start Defendants”) move for a determination that the settlement they reached with plaintiffs Salvador Barrios and Elena Barrios, as well as third-party Oscar Aldrete, who was also involved in the subject accident, was reached in good faith. Under the proposed settlement, the Healthy Start Defendants are to pay $1,000,000 total, with $940,000 to plaintiffs and $60,000 to Aldrete. (Attia Decl. ¶ 7 & Ex. E at ¶ 1.)

On April 28, 2022, the Court initially heard this motion. The Court evaluated the proposed settlement based on the factors set forth in Tech-Bilt, Inc. v. Woodward-Clyde & Assocs. (1985) 38 Cal.3d 488. The Court found that the settlement was potentially within the ballpark of reasonable settlements. However, the Court continued the hearing on this motion to allow non-settling defendants County of Los Angeles (“County”) and City of Commerce (“City”) to conduct discovery regarding the financial condition of the Healthy Start Defendants.

On August 18, 2022, the Court conducted a second hearing on this motion. Considering the net income in Healthy Start’s balance sheets, the Court determined that Healthy Start’s “modest financial condition is not a factor that would support a finding that the proposed settlement is so far out of the ballpark as to be inconsistent with a finding of good faith settlement.” (8/18/22 Minute Order at 2.) The Court also found that “Neri’s liability is adequately accounted for by the contemplated $940,000 payment to plaintiffs, irrespective of the parties’ dispute over the extent of Neri’s liability for the collision.” (8/18/22 Minute Order at 4.)

However, the Court noted inconsistent testimony from the Person Most Knowledgeable designated by Healthy Start with respect to the existence of all insurance policies available to Healthy Start. (8/28/22 Minute Order at 3.) The Court continued the hearing on this motion “for the limited purpose of permitting defendant City of Commerce to obtain discovery from non-parties Colony West Financial Insurance Services (“Colony West”) and Town and Country Financial and Insurance Group Inc. (“Town and Country”) concerning whether defendant Healthy Start has umbrella and/or excess insurance policy coverage for the automobile accident at issue in this case.” (8/28/22 Minute Order at 1.)

In the City’s supplemental filing, the City contends that, despite reaching an agreement with the Healthy Start Defendants regarding the scope of a subpoena to Colony West and Town Country, the insurance records have not been received. (Bagnaschi Decl. ¶¶ 5-8 & Ex. 1.) However, on September 21, 2022, prior to the filing of the City’s supplemental brief, the Healthy Start Defendants notified the City by email that Colony West provided an anticipated production date of October 3, 2022. (Bagnaschi Decl. Ex. 1.) If there were a delay in the production of records, the Healthy Start Defendants indicated their willingness to stipulate to a continuance of the instant motion. (Bagnaschi Decl. Ex. 1.) The City never responded to the Healthy Start Defendants’ email. (Attia Decl. ¶ 9.) Instead, the City filed its supplemental brief on October 4, 2022 after apparently not receiving the requested insurance records.

The records requested in the subpoena were produced to the City’s subpoena service on October 5, 2022. (Attia Decl. ¶ 11.) The City confirmed receipt of the records by the subpoena service. (Attia Decl. ¶ 12 & Ex. Z.) Counsel for the Healthy Start Defendants declares that, based on his review of the records produced by Colony West, “no other policies of insurance exist providing coverage over the $1 million policy limit being paid to settle Plaintiffs and claimant Oscar Aldrete’s claims. No documents evidencing any other insurance policies were produced.” (Attia Decl. ¶ 13.)

The Court inquires from the City whether it disputes the Healthy Start Defendants’ contention that no other policies providing coverage over the $1 million policy limit exist. Absent any dispute, for the reasons stated in the April 28, 2022 and August 18, 2022 minute orders, incorporated by reference herein, along with the apparent lack of excess or umbrella insurance coverage for the Healthy Start Defendants, the Court shall grant the Healthy Start Defendants’ motion for good faith settlement determination. If the motion is granted, defendants Healthy Start-East LA, Inc., Daniel Tercero Neri, and Casa de Angeles Cal. Corp. shall be discharged from all liability on claims for equitable contribution and/or full or partial indemnity by other parties, joint tortfeasors, or co-obligors, in this or any other action arising from the same general set of facts.