Judge: Elaine W. Mandel, Case: 22SMCV01005, Date: 2023-12-20 Tentative Ruling

Case Number: 22SMCV01005    Hearing Date: December 20, 2023    Dept: P

Tentative Ruling

Sequoia Shores, LLC v. 2435 Main Street LLC, Case No. 22SMCV01005

Hearing Date December 20, 2023

Plaintiff’s Ex Parte Application to Enforce Settlement Agreement

The parties formed a settlement agreement on November 9, 2022, under which defendant 2435 Main Street agreed to restore possession of property rented from plaintiff, make a series of payments and turn over its liquor license free and clear of any holds, liens or outstanding debts.

The settlement provides that on April 1, 2023, Main St. is required to “begin the process of transferring the Liquor License” to Sequoia, and that Main St. “shall be responsible for the payment of any escrow fees, transfer fees, and related costs associated with the transfer of the Liquor License” and “will submit all required returns, documents, and funds required to obtain releases of any holds that are on the Liquor License.” Id. ¶7. The agreement gives the court continued jurisdiction under Cal. Code of Civ. Proc. §664.6 and allows ex parte relief in the event of a breach. Exhibit 1 ¶9.

Sequoia states that although the parties have begun the escrow process for transferring the license “the CDTFA and FTB currently have holds on the license such that the Liquor License cannot be transferred.” Sanders decl. ¶4, exhibits 2-3. The exhibits indicate third party Tipsy Chef LLC owes $107,604.88 to California Department of Tax and Fee Administration and $5,462.95 to the CA Franchise Tax Board, preventing transfer of the license. Exhibits 2-3. Although the amounts are owed by a third party, the settlement agreement makes Main St. equally liable for paying them to release the holds.

Entry of judgment is proper, since Sequoia provides undisputed evidence that Main St. failed to pay outstanding fees and costs to transfer the license as required under ¶7 of the agreement. Main St. must pay the amounts in exhibits 2-3 to the FTB and CDTFA by December 27, 2023.

Sequoia requests attorney’s fees incurred attempting to enforce the settlement agreement. Sequoia requests fees of $19,870.50, representing 23.8 hours of enforcement activities and 4 hours of estimated time spent preparing this application and appearing at the hearing. Sanders decl. ¶7. Sequoia does not specify how much each attorney working on this matter billed or identify tasks performed. The court cannot determine whether the requested fees are reasonable.

Entry of judgment under §664.6 GRANTED, fee request DENIED.