Judge: Katherine Chilton, Case: 18STLC14776, Date: 2022-12-19 Tentative Ruling

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Case Number: 18STLC14776     Hearing Date: December 19, 2022    Dept: 25

PROCEEDINGS:      MOTION TO VACATE DISMISSAL, ENFORCE SETTLEMENT, AND ENTER JUDGMENT

MOVING PARTY:   Plaintiff First National Insurance Company of America

RESP. PARTY:         None

MOTION TO VACATE DISMISSAL, ENFORCE SETTLEMENT, AND ENTER JUDGMENT

(CCP § 664.6)

TENTATIVE RULING:

Plaintiff First National Insurance Company of America’s Motion to Set Aside Dismissal, Enforce Settlement, and Enter Judgment is GRANTED.  Dismissal entered on January 24, 2022, is vacated, and judgment is entered for Plaintiff and against Defendants for the amount of $28,135.84 as follows: $20,176.25 in unpaid principal, $7,589.59 in interest, and $370.00 in court costs.

SERVICE: 

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

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

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

OPPOSITION:          None filed as of December 13, 2022.                     [   ] Late                      [X] None

REPLY:                     None filed as of December 13, 2022.                     [   ] Late                      [X] None

ANALYSIS:

I.                Background

            On December 12, 2018, Plaintiff First National Insurance Company of America (“Plaintiff”) filed an action against Defendant Rodney Zamora, dba Rocket Plumbing (“Defendant” or “Zamora”) for insurance subrogation, stemming from an alleged fire on the property of an individual insured by Plaintiff’s insurance policy.  (Compl. ¶ 10)  Plaintiff compensated the insured for claimed damages in the amount of $20,176.25 and filed the instant claim against Defendant for allegedly causing the damages.  (Ibid. pp. 3-4.)

            On May 2, 2019, Defendant filed an Answer.

            On February 25, 2020, Plaintiff filed an Amendment to the Complaint, adding Rodney Zamora, Jr. (“Zamora Jr.”) as Defendant Doe 1.  (2-25-20 Amendment.)

On February 28, 2020, based on the Stipulation of the parties, the Court continued the trial date to October 5, 2020.  (2-28-20 Stipulation and Order.)

Defendant Zamora Jr. filed an Answer on August 4, 2020.

On August 24, 2020, based on another Stipulation of the parties, the Court continued the trial date to June 28, 2021, along with all discovery and motion cut-off dates.  (8-24-20 Stipulation and Order.)  Based on a third Stipulation of the parties, the Court again continued the trial date to October 4, 2021.  (5-17-21 Stipulation and Order.)

On October 4, 2021, the date set for Non-Jury Trial, the parties informed the Court that the case had settled.  (10-4-21 Minute Order.)  Accordingly, the Court, on its own motion, vacated the Non-Jury trial date.  (Ibid.)

On January 5, 2022, Plaintiff filed a Stipulated Judgment, Release, and Agreement (“Stipulation”), signed by all parties, to dismiss the action on the premise that Defendants Zamora and Zamora Jr. would compensate Plaintiff for the settlement amount of $14,123.38.  (1-5-22 Stipulation and Order.)  On January 24, 2022, the Court dismissed the entire case without prejudice pursuant to the Stipulation.  (1-24-22 Order.)

On September 16, 2022, Plaintiff filed a Motion to Vacate Dismissal, Enforce Settlement Agreement, and Enter Judgment (“Motion”)

No opposition has been 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).)

Here, the parties signed a Stipulated Judgment, Release, and Agreement (“Stipulation”) containing the parties’ agreement for the Court to retain jurisdiction pursuant to Code of Civil Procedure §664.6 to enforce the terms of the stipulation and enter judgment in the event of default.  (1-5-22 Stipulation ¶ 9.)  Prior to the dismissal of this action, the Stipulation was signed by the parties and submitted to the Court.  (Ibid. at pp. 4-5.)  On January 24, 2022, the Court dismissed the entire case without prejudice pursuant to the Stipulation and expressly stated that the Court will retain “Jurisdiction pursuant to CCP Section 664.6.”  (1-24-22 Order.)

The Court finds that the Stipulation complies with § 664.6 requirements and the Court has retained jurisdiction to enter judgment pursuant to the parties’ Stipulation in this action.

B. Entry of Judgment

The Stipulation Agreement filed on January 5, 2022, states that Plaintiff and Defendants agreed to dismiss the action on the premise that Defendants would compensate Plaintiff for the settlement amount of $14,123.38.  (1-5-22 Stipulation ¶ 3.)  Pursuant to the Stipulation, Defendants would make payments of $200 on or before the 30th of each month from July 30, 2021, to April 30, 2027, with a final payment of $123.38 to be made on or before May 30, 2027.  (Ibid. at ¶ 2.)  All parties signed the Stipulation.  (Ibid. at pp. 4-5.)

The Stipulation also provides that in the event Defendants fail to make timely payments, Plaintiff may request that the Court enter judgment of the full amount owed, $20,176.25, plus interest from the date of filing the Complaint, and court costs, less credit for any payments made, to be paid within seven (7) days of written notice to Defendants.  (Ibid. at ¶¶ 1, 5.)  A declaration from Plaintiff or Plaintiff’s counsel of record “shall be conclusive proof of the fact of default of said Defendant and of the amount then owing by the said Defendant.”  (Ibid. at ¶¶ 5, 8.)

On September 16, 2022, Plaintiff filed the instant Motion alleging that Defendants breached the Stipulation and seeking judgment in the amount of $28,135.84 as follows: $20,176.25 in unpaid principal, $7,589.59 in interest (accrued at 10% per annum from December 12, 2018), and $370 in court costs.  (Mot. p. 4.)

In his declaration, Plaintiff’s Counsel states that Defendants have not made any payments and requests that the Court enter judgment against Defendants.  (Tapper Decl. ¶ 5.)

The Court finds the Stipulation to be valid and enforceable under Code of Civil Proc. § 664.6.  Plaintiff provides evidence that Defendants did not make any payments.  Thus, a valid and signed stipulation agreement was breached and the Court retained jurisdiction to enter judgment upon breach.

Accordingly, Plaintiff’s Motion to Set Aside Dismissal, Enforce Settlement, and Enter Judgment is GRANTED.  Dismissal entered on January 24, 2022, is vacated, and judgment is entered for Plaintiff and against Defendants for $28,135.84 as follows: $20,176.25 in unpaid principal, $7,589.59 in interest (accrued at 10% per annum from December 12, 2018), and $370 in court costs.  ‘

IV.           Conclusion & Order

For the foregoing reasons,

Plaintiff First National Insurance Company of America’s Motion to Set Aside Dismissal, Enforce Settlement, and Enter Judgment is GRANTED.  Dismissal entered on January 24, 2022, is vacated, and judgment is entered for Plaintiff and against Defendants for the amount of $28,135.84 as follows: $20,176.25 in unpaid principal, $7,589.59 in interest, and $370 in court costs.

Moving party is ordered to give notice.