Judge: Jon R. Takasugi, Case: 23STCV10867, Date: 2024-05-20 Tentative Ruling

Case Number: 23STCV10867    Hearing Date: May 20, 2024    Dept: 17

Superior Court of California

County of Los Angeles

DEPARTMENT 17

TENTATIVE RULING

Plaintiff’s motion to vacate the dismissal, reinstate this case, and enter a money judgment is GRANTED.

            On 5/15/2023, Plaintiff UTF Enterprises, LLC filed suit against International Developers and Engineering Group, Inc. dba IDEG Construction, International Government Services, Inc dba IDEG Construction, IDEG Supply LLC dba IDEG Construction, alleging unlawful detainer.

            On 7/25/2023, the Court dismissed this case, pursuant to CCP section 664.6.

            Now, Plaintiff seeks an order vacating the 7/25/2023 dismissal, reinstating this action, and entering a money judgment against Defendants, and each of them, in the total amount of $80,175.86 ($68,015.86 remaining principal balance owing + $12,040.00 attorneys’ fees + $120.00 costs.)

Discussion 

            Plaintiff argues that Defendants have breached the settlement agreement and that they are entitled to judgment under CCP section 664.6.

Section 2.5 of the Agreement provides in relevant part as follows:

2.5 UTF agrees to refrain from entering the judgment pursuant to said STIPULATION FOR MONEY and refrain from collection activities so long as the IDEG PARTIES pay the amount of $126,015.86 and complies with the payment schedule as follows:

2.5.1 $1,305.00 upon execution of this AGREEMENT;

2.5.2 $15,000.00 on or before June 30, 2023;

2.5.3 $10,000.00 on or before the last day of each month (unless the last day is a Saturday, Sunday or holiday, then such payment is due on the next business day) commencing July 31 through November 30, 2023); and

2.5.4 $59,710.86 on or before December 31, 2023.

2.6 All payments shall be made payable to UTF ENTERPRISES, LLC and sent to its counsel by wire as follows: City National Bank, 400 N. Roxbury Drive, Beverly Hills, CA 90210, Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP Client Trust Account, ABA Routing no. 122016066, Account no. 001966537, Swift Code: CINAUS6L, File No. 20422-103 (this is the trust account for UTF’s counsel and upon receipt of said funds they shall be the property of UTF. Elsa M. Horowitz, Esq., of Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP, 11400 W. Olympic Boulevard, 9th Floor, Los Angeles, California 90064 is UTF’s counsel). (Emphasis added)

Section 3 of the Agreement provides:

ENTRY OF JUDGMENT. In the event the IDEG PARTIES fail to pay all or any part of the amount provided for in Section 2.5, 2.5.1, 2.5.2, 2.5.3, and 2.5.4 herein, within five (5) business days after written notice by email to the IDEG PARTIES’ counsel, John J. O’Kane IV, Esq. of SKIERMONT DERBY LLP (email jokane@skiermontderby.com) of any failure to make any payment due, and only in that event, UTF shall have the right to file the attached STIPULATION FOR MONEY and have judgment entered pursuant to thereto on an ex parte basis in the amount of $126,015.86, less any payments by the IDEG PARTIES plus reasonable attorney’s fees and costs, and interest. (Emphasis added)

                        Section 4 of the Agreement provides:

4. COURT RETENTION OF JURISDICTION AND PROCEDURE.

4.1 The PARTIES shall also execute a stipulation for dismissal of the ACTION pursuant to Code of Civil Procedure Section 664.6 with the Court retaining jurisdiction to enforce the terms of this AGREEMENT and/or the STIPULATION FOR MONEY (the “STIPULATION TO DISMISS”). The PARTIES also authorize their counsel to execute the STIPULATION TO DISMISS the ACTION pursuant to Code of Civil Procedure Section 664.6 with the Court retaining jurisdiction to enforce the terms of this AGREEMENT and/or the STIPULATION FOR MONEY.

4.2 UTF shall file the STIPULATION FOR POSSESSION and have judgment entered pursuant to said stipulation if IDEG PARTIES have failed to comply with any one of the following Sections above: 2.3.1., 2.3.2, and/or 2.3.3.

4.3 After IDEG PARTIES have vacated the SUBJECT PROPERTY (whether by compliance with the terms of this AGREEMENT or pursuant to the filing of the STIPULATION FOR POSSESSION, whatever the case may be), UTF shall file the STIPULATION TO DISMISS. (Emphasis added)

Section 17, page 5 of the Agreement also provides:

ATTORNEY’S FEES. In the event of any action, suit or other proceeding concerning the interpretation, validity, performance or breach of any of the terms and conditions of this AGREEMENT, the prevailing PARTY shall recover reasonable attorney’s fees, costs and expenses incurred in each and every such action, suit or other proceeding, including any and all appeals and/or petitions relating thereto.

On June 16, 2023, the parties executed the Stipulation For Money which provided in relevant part as follows:

1. Defendants agree to pay UTF $126,015.86 representing the stipulated balance due as is more fully set forth in the parties’ move-out agreement dated June 9, 2023 (the “Agreement”).

2. Defendants do not dispute the amount due being $126,015.86, and further acknowledge that the amount of $126,015.86 is due and owing.

3. Defendants agree that a judgment may be rendered against them, jointly and severally, in the amount of $126,015.86 plus interest, costs, and reasonable attorney’s fees which accrue, less credit for payments tendered by Defendants in accordance with the Agreement.

4. Judgment shall be entered on an ex parte basis upon the filing of a declaration by UTF or UTF’s attorneys if Defendants fail to make payments in a timely manner pursuant to the Agreement.

5. Defendants waive their right to a hearing upon the entry of judgment and notice of the application for entry of judgment, as set forth in Rooney v. Vermont Investments (1973) 10 Cal.3d 351, 110 Cal.Rptr. 353.

            The Court entered this stipulation to dismiss on September 25, 2023.

As such, under the term and conditions of the Agreement, among other things, the IDEG Parties agreed to vacate the Property on or before June 26, 2023 and make certain payments to UTF for rent owing in the amount of $126,015.86. In exchange for the same, UTF agreed to file a dismissal without prejudice of the Action with the Court retaining jurisdiction to enforce the terms of the Agreement under Code of Civil Procedure § 664.6.

Plaintiff submitted evidence that the IDEG Parties have only paid $58,000.00 since June 2023 towards the Payments Owing despite the total amount due and owing December 31, 2023. No payments have been made since January, 2024, despite repeated demand and modifying the repayment schedule to accommodate UTF.

In opposition, Defendants do not dispute their failure to abide. Rather, they request a continuance given that “Defendants reasonably anticipate one or various liquidity events that would permit them to pay off the balance to occur within the next ninety (90) days.” (Opp., 1:9-11.)

However, noticeably absent from Defendants’ brief opposition is any legal authority which would allow the Court to grant the requested relief. (“This failure to cite pertinent legal authority is enough reason to reject the argument”); Akins v. State of California (1998) 61 Cal.App.4th 1, 50, 71 (contention waived by failure to cite legal authority). Indeed, Defendants’ opposition does not include a citation to a single case.

Defendants do not dispute that they are in clear breach of the Settlement Agreement, and that the Settlement Agreement sets forth clear provisions as to what is to happen in the event of breach. Defendants’ argument that they should be spared the consequences of their breach, and be granted a continuance based on a belief that they will soon have the available funds, needed to be supported by legal authority and analysis showing that such relief could be granted.

            Based on the foregoing, Plaintiff’s motion to vacate the dismissal, reinstate this case, and enter a money judgment is granted.

It is so ordered.

Dated:  May    , 2024

   Hon. Jon R. Takasugi
   Judge of the Superior Court

Parties who intend to submit on this tentative must send an email to the court at smcdept17@lacourt.org by 4 p.m. the day prior as directed by the instructions provided on the court website at www.lacourt.org.  If a party submits on the tentative, the party’s email must include the case number and must identify the party submitting on the tentative.  If all parties to a motion submit, the court will adopt this tentative as the final order.  If the department does not receive an email indicating the parties are submitting on the tentative and there are no appearances at the hearing, the motion may be placed off calendar.  For more information, please contact the court clerk at (213) 633-0517.