Judge: John J. Kralik, Case: EC064623, Date: 2022-08-12 Tentative Ruling

Case Number: EC064623    Hearing Date: August 12, 2022    Dept: NCB

Superior Court of California

County of Los Angeles

North Central District

Department B

BACKGROUND

A.    Allegations

Plaintiff National Collegiate Student Loan Trust 2006-3 (“Plaintiff”) alleges that Defendants Apolinar Sanchez aka Apolinar Sanchez, Jr. and Maria Mendoza (“Defendants”) entered into a written contract with Plaintiff’s assignor BankOne (JPMorgan Chase Bank, NA) on July 21, 2006, whereby Plaintiff’s assignor loaned money to Defendants for financing education expenses.  Plaintiff alleges that on April 26, 2012, Defendants failed to make payments on the contract and defaulted on the agreement.  Plaintiff alleges damages in the principal sum of $27,346.25.

The complaint, filed November 5, 2015, alleges a single cause of action for breach of contract. 

B.     Relevant Background

On January 15, 2016, Plaintiff filed a Notice of Settlement of Entire Case. 

On May 2, 2016, Plaintiff filed the Conditional Stipulated Settlement, which was signed by the parties. 

On May 18, 2016, the Court entered the order dismissing the matter without prejudice and retaining jurisdiction under CCP § 664.6 to set aside the dismissal and enter a judgment upon showing of default of the terms of the Stipulation. 

C.     Motion on Calendar

On July 21, 2022, Plaintiff filed a motion to set aside the CCP § 664.6 dismissal and to enter judgment against Defendants.

The Court is not in receipt of an opposition brief. 

The matter initially came for hearing on July 22, 2022.  Plaintiff submitted on the tentative ruling online, but Defendant (in propria persona) appeared at the hearing.  The Court heard Defendant’s oral arguments and continued the hearing to August 12, 2022 so that Defendant would have time to negotiate a payment plan with Plaintiff. 

DISCUSSION

A.    Terms of the Conditional Stipulated Settlement

A copy of the Conditional Stipulated Settlement (“Settlement Agreement”) is attached as Exhibit 1 to the declaration of Stephanie Boone.  The Settlement Agreement was entered between Plaintiff and Defendants.  The Settlement Agreement provides in relevant part, the following terms:

·         Defendants shall pay Plaintiff $20,000 as full resolution of the lawsuit on their account.  (¶5.)

·         Defendants shall pay Plaintiff the $20,000 amount on the following schedule: (1) a 1-time payment made via personal check for $125 on 1/20/16; (2) monthly payments via personal check for $125 beginning 2/20/16; (3) monthly payments via personal check for $100 beginning 1/20/19; (3) monthly payments via personal check for $300 beginning 1/20/22; and (4) monthly payments via personal check for $100 beginning 1/20/25 until paid.  (¶6.)

·         If Defendants fail to make the payments on their due dates, the Court shall set aside the dismissal without prejudice, resume jurisdiction over the matter, and enter judgment in favor of Plaintiff and against Defendants in the principal amount of $27,346.25 and $570 in costs, less any credits.  (¶¶1, 9.)

Defendants signed the Settlement Agreement on January 20, 2016.  Plaintiff signed the Settlement Agreement through its authorized agent on April 26, 2016. 

B.     Merits of Motion

            Plaintiff moves to set aside and vacate the dismissal without prejudice pursuant to CCP § 664.6 and to enter judgment pursuant to the terms of the Settlement Agreement against Defendants.  In support of the motion, Plaintiff provides the declaration of its counsel, Stephanie Boone. 

Ms. Boone states that after the parties signed the Settlement Agreement, Defendants defaulted on the terms of the Settlement Agreement by failing to make payments on February 20, 2017 and thereafter.  (Boone Decl., ¶9.)  She states that Defendants have made a total of $1,625 in payments and thus the total amount of credits to be applied to the account is $1,625.  (Id., ¶10.)  Accordingly, Plaintiff seeks an order from the Court setting aside the dismissal and entering judgment in the amount of $26,291.25 (= $27,346.25 principal sum - $1,625 credit + $570 in court costs).  (Id., ¶¶6, 11.)   

Based on the terms of the Settlement Agreement and Defendants’ default by failure to make any payments pursuant to the payment schedule, the Court finds there is substantive merit to granting the motion to enforce the Settlement Agreement.

Since the July 22, 2022 hearing, the Court is not in receipt of additional documents from Plaintiff or Defendants showing that a payment plan was reached.

Thus, the motion to enforce the Settlement Agreement is granted. 

CONCLUSION AND ORDER

Plaintiff National Collegiate Student Loan Trust 2006-3’s motion to vacate the dismissal pursuant to CCP § 664.6 and enter judgment pursuant to the Conditional Stipulated Settlement against Defendants Apolinar Sanchez aka Apolinar Sanchez, Jr. and Maria Mendoza is granted.  Judgment shall be entered in favor of Plaintiff and against Defendants in the amount of $26,291.25 (which includes the principal amount of $25,721.25, plus $570 in court costs).

Plaintiff is ordered to electronically submit a proposed judgment for the Court’s signing. The Court sets a Non-Appearance Case Review re: Submission of Judgment for October 19, 2022 at 8:30 a.m. 

Plaintiff shall give notice of this order.