Judge: Katherine Chilton, Case: 18STLC12280, Date: 2022-09-26 Tentative Ruling

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Case Number: 18STLC12280     Hearing Date: September 26, 2022    Dept: 25

PROCEEDINGS:      MOTION TO SET ASIDE/VACATE DISMISSAL AND ENTER JUDGMENT

MOVING PARTY:   Plaintiff State Farm Mutual Automobile Insurance Company

RESP. PARTY:         None

MOTION TO SET ASIDE/VACATE DISMISSAL AND ENTER JUDGMENT

(CCP § 664.6)

TENTATIVE RULING:

Plaintiff State Farm’s Motion to Vacate Dismissal and Enter Judgment is GRANTED.  The Court orders the April 14, 2020 dismissal as to the entire action be set aside and vacated.  Judgment is entered against Defendant Figueroa in the amount of $2,660.00.

SERVICE: 

[   ] Proof of Service Timely Filed (CRC, rule 3.1300)                 YES

[   ] Correct Address (CCP §§ 1013, 1013a)                                                 YES

[   ] 16/21 Court Days Lapsed (CCP §§ 12c, 1005(b))                     YES

OPPOSITION:          None filed as of September 21, 2022.                     [   ] Late                      [X] None

REPLY:                     None filed as of September 21, 2022.                     [   ] Late                      [X] None

ANALYSIS:

I.                Background

On September 28, 2018, Plaintiff State Farm Mutual Automobile Insurance Company (“Plaintiff”) filed an action against Defendant Alexander Figueroa (“Defendant”) for subrogation, stemming from an alleged automobile accident that occurred on September 18, 2017.  (Compl.)  Plaintiff compensated its insured for claimed damages in the amount of $6,355.41 and filed the instant claim against Defendant for allegedly causing the damages.  (Ibid. pp. 2-4.)

On May 2, 2019, Defendant filed an Answer denying all allegations in the Complaint.

On April 14, 2020, Plaintiff filed a Stipulation for Dismissal with Reservation to Vacate and Enter Judgment Upon Breach (“Stipulation”), signed by both parties, to dismiss the action without prejudice on the premise that Defendant would compensate Plaintiff in the settlement amount of $4,545.90.  (4-14-20 Stipulation.)  On the same day, the Court dismissed the entire case without prejudice pursuant to the Stipulation.  (Ibid. at p. 4.)

On August 24, 2022, Plaintiff filed the instant Motion to Vacate Dismissal and Enter Judgment (“the Motion”) pursuant to Code of Civil Procedure § 664.6.  Plaintiff’s counsel indicates that the Motion is being submitting on the moving papers and he will not appear at the hearing.  (Mot. p. 2.)

No opposition was filed.

II.              Legal Standard & Discussion

CCP § 664.6, provides a summary procedure that enables judges to enforce a settlement agreement by entering a judgment pursuant to the terms of the parties’ settlement.  In particular the statute provides:

(a) 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.

(b) For purposes of this section, a writing is signed by a party if it is signed by any of the following:

(1) The party.

(2) An attorney who represents the party.

(3) If the party is an insurer, an agent who is authorized in writing by the insurer to sign on the insurer's behalf.

CCP § 664.6(a)-(b) (emphasis added).

III.            Discussion

A. Retention of Jurisdiction

“‘[V]oluntary dismissal of an action or special proceeding terminates the court’s jurisdiction over the matter.’  (Conservatorship of Martha P. (2004) 117 Cal.App.4th 857, 867) [12 Cal.Rptr.3d 142.) ‘If requested by the parties,’ however, ‘the [trial] court may retain jurisdiction over the parties to enforce [a] settlement until performance in full of the terms of the settlement.’ (§ 664.6, italics added.)”  (Mesa RHF Partners, L.P. v. City of Los Angeles (2019) 33 Cal.App.5th 913, 917.)  “‘Because of its summary nature, strict compliance with the requirements of section 664.6 is prerequisite to invoking the power of the court to impose a settlement agreement.’”  (Ibid. (quoting Sully-Miller Contracting Co. v. Gledson/Cashman Construction, Inc. (2002) 103 Cal.App.4th 30, 37).)

“A request for the trial court to retain jurisdiction under section 664.6 ‘must conform to the same three requirements which the Legislature and the courts have deemed necessary for section 664.6 enforcement of the settlement itself: the request must be made (1) during the pendency of the case, not after the case has been dismissed in its entirety, (2) by the parties themselves, and (3) either in a writing signed by the parties or orally before the court.’”  (Ibid. (quoting Wackeen v. Malis (2002) 97 Cal.App.4th 429, 440).)  “The ‘request must be express, not implied from other language, and it must be clear and unambiguous.’” (Ibid. (quoting Wackeen, supra, 97 Cal.App.4th at 440).)

On March 12, 2020, prior to the dismissal, the parties signed a Stipulation for Dismissal with Reservation to Vacate and Enter Judgment Upon Breach (“Stipulation”), which states that “[t]he parties stipulate that the court shall retain jurisdiction pursuant to CCP 664.6” to vacate dismissal and enter judgment in the event of a breach.  (4-14-20 Stipulation and Order, ¶ 3.)  On the same day, the Court dismissed the entire case pursuant to the Stipulation and expressly stated that it “shall retain jurisdiction pursuant to CCP § 664.6.”  (Ibid. at p. 4.)

As the Stipulation complies with § 664.6 requirements, the Court has retained jurisdiction to enter judgment pursuant to the parties’ Stipulation in this action.

B. Entry of Judgment

The Stipulation Agreement filed by Plaintiff on April 14, 2020, provides that Plaintiff and Defendant agreed to dismiss the action without prejudice on the premise that Defendant will compensate Plaintiff for the settlement amount of $4,545.90.  (4-14-20 Stipulation, ¶¶ 1-2.)  Defendant’s insurance carrier will make an initial payment of $1,545.90 and Defendant will pay the remaining balance of $3,000.00 with $100.00 monthly installments, starting on May 1, 2020, until the amount is paid in full.  (Ibid.)  All parties signed the Stipulation.  (Ibid. p. 3.)

The Stipulation also provides that in the event Defendant fails to make timely payments, Plaintiff will mail a letter reminding Defendant to pay, and after fourteen (14) days of not receiving payment following the letter, “plaintiff will be entitled to have any dismissal in this action set aside and judgment entered as prayed for in the complaint, minus credit for payments received, plus any costs the court requires to enter judgment or costs associated with any procedure to have the judgment entered.”  (Ibid. at ¶ 3.)

On August 24, 2022, Plaintiff filed the instant Motion alleging that Defendant breached the Stipulation Agreement.  Defendant’s insurance carrier made a payment of $1,545.90.  (Espinosa Decl. ¶ 4.)  Defendant made monthly payments, totaling $400.00, but subsequently stopped making payments. (Ibid. at ¶ 5.)  On or around February 17, 2020, Plaintiff provided written notice of default to Defendant.  (Ibid. at ¶ 6; Ex. C.)  As of the date of the Motion, Defendant has not made any additional payments.  (Ibid. at ¶ 7.)  Plaintiff seeks to have the dismissal set aside and to have judgment entered in the amount of $2,660.00 as follows: $4,545.90 (settlement amount), minus $1,945.90 (payments by Defendant’s insurance carrier and Defendant), plus $60.00 (court costs).  (Ibid. at ¶¶ 7-8.)

The Court finds the Stipulation to be valid and enforceable under Code of Civil Procedure § 664.6.  Plaintiff provides evidence that Defendant stopped making payments and did not respond to Plaintiff’s written notice of default.  Since a valid and signed stipulation agreement was breached and the Court retained jurisdiction to enter judgment upon breach, Plaintiff’s Motion to Vacate Dismissal and Enter Judgment is GRANTED.

The Court also finds that Plaintiff is entitled to the settlement amount, less any payments made, plus any court costs.  Judgment is entered for Plaintiff and against Defendant in the amount of $2,660.00.

IV.           Conclusion & Order

For the foregoing reasons,

Plaintiff State Farm’s Motion to Vacate Dismissal and Enter Judgment is GRANTED.  The Court orders the April 14, 2020 dismissal as to the entire action be set aside and vacated.  Judgment is entered against Defendant Figueroa in the amount of $2,660.00.

Moving party is ordered to give notice.