Judge: Joseph Lipner, Case: BC683714, Date: 2023-08-17 Tentative Ruling

Case Number: BC683714    Hearing Date: August 17, 2023    Dept: 72

Date:               8/17/023                                 

Case No:                                 BC683714                              

Case Name:                            State Farm Mutual Automobile Insurance Company v. Jorge Perez Salazar

            Plaintiff State Farm Mutual Automobile Insurance Company (“Plaintiff”) moves to vacate the dismissal, enforce the settlement agreement, and enter judgment.  The Court GRANTS the motion in part.  Specifically, the Court will include all the amounts requested by Plaintiff in the judgment except for $1,571.07 in Attorney’s fees. 

Plaintiff’s request turns on the enforcement of the parties’ settlement and stipulated judgment.  “If parties to pending litigation stipulate, in a writing signed by the parties outside of the presence of the court or orally before the court, for settlement of the case, or part thereof, the court, upon motion, may enter judgment pursuant to the terms of the settlement. If requested by the parties, the court may retain jurisdiction over the parties to enforce the settlement until performance in full of the terms of the settlement.” (CCP § 664.6(a).)

On July 18, 2019, Plaintiff and Defendant Jorge Perez Salazar (“Defendant”) entered into a Stipulation for Entry of Judgment (the “Stipulation”), which was filed with and signed by the Court on the same date. The Court accordingly dismissed the action with prejudice and retained jurisdiction under Code of Civil Procedure section 664.6 to enforce the Stipulation.

The Stipulation provided that Plaintiff would accept $24,700.00 from Defendant and Defendant’s insurer in lieu of the $39,369.06 Defendant owed to Plaintiff. Defendant’s insurer was to pay Plaintiff $10,000.00, with any unpaid portion to be covered by Defendant, and Defendant was to pay the sum of $14,700.00 in $175.00 monthly installments until paid in full, and any deficiencies from Defendant’s insurer must be covered by defendant. (Stipulation, ¶ 2(a).) Plaintiff indicates that it has only received $10,575.00 thus far, comprised of $8,500.00 from Defendant’s insurance carrier and $1,575.00 from Defendant. (Mahfouz Decl., ¶¶ 7, 9.) Plaintiff served multiple notices of default upon Defendant, ultimately to no avail. (Id., Ex. B.)

The stipulation provides that in the event of a default, “Plaintiff may immediately cause Judgment to be entered pursuant to the terms set forth in this Stipulation for the full amount of the agreed upon judgment as set forth in Paragraph 1 less any monies paid to date of the breach; and shall also file a partial Satisfaction of Judgment for all sums previously paid pursuant to this Stipulation.”  (Stipulation, ¶ 5.)  Paragraph 1, referenced in this provision, is “THIRTY NINE THOUSAND THREE HUNDRED AND SIXTY NINE DOLLARS AND SIX CENTS ($39,369.06) plus costs of suit and prejudgment interest from the date of the loss.”

Under these terms, Plaintiff has requested entry of judgment in the amount of $39,921.53, comprised of the original amount of $39,369.06 in damages, $8,516.40 in interest at the annual rate of 7%, attorney’s fees in the amount of $1,571.07, costs in the amount of $540.00, less $10,075.00 before payments received before the breach.  Except for the requested attorney’s fees, these amounts are supported by the terms of the Stipulation recited above.

Attorney’s fees are recoverable as an item of costs only when provided for by contract, statute, or law. (CCP § 1033.5(a)(10).)  Plaintiff relies on Local Rule 3.214 for its attorney’s fees request, but this rule does not provide for the recovery of attorney’s fees unless the contract at issue provides for their recovery. (Local Rule 3.214.)    The Stipulation does not provide for their recovery. Accordingly, the Court will deny the motion with respect to the attorney’s fees sought.

The revised grand total for entry of judgment will be $38,350.46.