Judge Katherine Chilton, Case 20STLC00874 2022-12-07 Tentative Ruling

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

Plaintiff State Farm Mutual Automobile Insurance Company’s Motion to Set Aside Dismissal, Enforce Settlement, and Enter Judgment is GRANTED. The Dismissal entered on March 23, 2021, is vacated, and judgment is entered for Plaintiff and against Defendant for $9,112.77 as follows: principal amount of $7,106.74, $673.08 in interest, $570.75 in costs, and $762.20 in attorney’s fees.

On January 28, 2020, Plaintiff State Farm Mutual Automobile Insurance Company (“Plaintiff”) filed an action against Defendant Luis Samir Cortez (“Defendant”) for subrogation, stemming from an automobile collision between Defendant, on the one hand, and an individual insured by Plaintiff’s automobile insurance policy, on the other hand. (Compl.) Plaintiff compensated the insured for claimed damages in the amount of $12,406.74 and filed the instant claim against Defendant for allegedly causing the damages. (Ibid. pp. 3-4.) On February 18, 2020, Defendant filed an Answer.

On March 8, 2021, Plaintiff filed a Stipulation for Settlement and Order (“Stipulation”), signed by both parties, to dismiss the action on the premise that Defendant would compensate Plaintiff for the settlement amount of $6,500.00. (3-8-21 Stipulation and Order.) On March 23, 2021, the Court dismissed the entire case without prejudice pursuant to the Stipulation. (3-23-21 Order.)

On August 29, 2022, Plaintiff filed a Motion to Vacate Dismissal, Enforce Settlement Agreement, and Enter Judgment (“Motion”). Plaintiff also filed a Memorandum of Costs on August 29, 2022.

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:

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

“‘[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 Stipulation for Settlement and Order (“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. (3-8-21 Stipulation ¶ 8.) Prior to the dismissal of this action, the Stipulation was signed by the parties and submitted to the Court. (Ibid. at p. 3.) On March 23, 2021, the Court dismissed the entire case without prejudice pursuant to the Stipulation and expressly stated that it “shall retain Jurisdiction to enforce the Stipulation for Settlement pursuant to California Code of Civil Procedure section 664.6.” (3-23-21 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.

The Stipulation Agreement filed on March 8, 2021, provides that Plaintiff and Defendant agreed to dismiss the action on the premise that Defendant would compensate Plaintiff for the settlement amount of $6,500.00. (3-8-21 Stipulation ¶ 4.) Pursuant to the Stipulation, Defendant’s insurance carrier would pay the policy limit of $5,000 and Defendant would pay the balance of $1,500 with an initial $50.00 payment at signing and no later than February 15, 2021, and consecutive $50.00 monthly payments made on the fifteenth day of each month until the balance is paid in full. (Ibid. at ¶ 4.) No interest would accrue if Defendant made the payments. (Ibid.) All parties signed the Stipulation. (Ibid. at p. 3.)

The Stipulation also provides that in the event Defendant fails to make timely payments, Plaintiff will mail a letter to Defendant’s last known address, reminding Defendant to pay. (Ibid. at ¶¶ 6-7.) If Defendant does not remedy the default within ten (10) days of receiving notice, “the attorney for Plaintiff may, by ex parte motion, submit an order to the court for entry of judgment against Defendant without further notice… for $12,406.74 plus interest on that amount, at the legal rate, from February 15, 2021, plus all costs of suit and reasonable attorney’s fees, as well as any additional costs incurred in the enforcement of this agreement, less any payments that have been made by Defendant and Defendant's insurance carrier to Plaintiff, as of that date.” (Ibid. at ¶ 7.)

On August 29, 2022, Plaintiff filed the instant Motion alleging that Defendant breached the Stipulation and seeking judgment in the amount of $9,112.77 for the settlement amount, interest accrued at 7% per annum, court costs, and attorney’s fees, minus payments from Defendant and his insurance carrier. (Mot. pp. 1-2.)

On or about March 22, 2021, Defendant’s insurance carrier made a payment of $5,000.00 to Plaintiff. (Mahfouz II Decl. ¶ 7.) Defendant made payments in the amount of $300.00 but did not continue making payments. (Ibid. at ¶ 9.) Plaintiff’s counsel sent past due notices to Defendant on January 18, February 22, and March 30, 2022. (Ibid. at ¶ 9, Ex. B.) As of the date of this Motion, Defendant had not made additional payments and there is an outstanding balance remaining. (Ibid. at ¶ 10.) Plaintiff seeks to have the dismissal set aside and judgment entered in the amount of $9,112.77 as follows: $12,406.74 (settlement amount), minus $5,300.00 (payments made by Defendant’s insurance carrier and Defendant), plus $673.08 (interest accrued at a legal rate of 7% per annum since default date of November 15, 2021), plus $570.75 (costs), plus $762.20[1] (attorney’s fees). (Ibid. at ¶¶ 11-12; Memorandum of Costs.)

Plaintiff argues that it is entitled to interest pursuant to Civil Code §§ 3287(a) and 3288 and calculates interest at 7% per annum accrued between November 15, 2021, and August 26, 2022. (Memorandum p. 5.) Plaintiff calculates attorney’s fees based on the Los Angeles County Superior Court Local Rule 3.214 which provides that recovery between $10,000.01 to $50,000 warrants $690 in attorney’s fees, plus 3% of the excess over $10,000, which amounts to a total of $762.20. (Memorandum p. 6.) Furthermore, Plaintiff has submitted a Memorandum of Costs showing that it requests $465.75 for filing the initial Complaint, $45.00 for service of process, and $60.00[2] for filing the instant Motion. (Memorandum p. 6; 8-29-22 Memorandum of Costs.)

The Court finds the Stipulation to be valid and enforceable under Code of Civil Proc. § 664.6. Plaintiff provides evidence that Defendant stopped making payments and did not respond to Plaintiff’s written notice of default. Thus, a valid and signed stipulation agreement was breached and the Court retained jurisdiction to enter judgment upon breach. Plaintiff has also provides authority to show that it is entitled to the settlement amount, less any payments made, costs incurred in enforcing the Stipulation, interest, and attorney’s fees. (Memorandum pp. 4-6.) The Court finds Plaintiff’s request as to attorney’s fees and costs to be reasonable.

Accordingly, Plaintiff’s Motion to Set Aside Dismissal, Enforce Settlement, and Enter Judgment is GRANTED. Dismissal entered on March 23, 2021, is vacated, and judgment is entered for Plaintiff and against Defendant for $9,112.77 as follows: principal amount of $7,106.74, $673.08 in interest, $570.75 in costs, and $762.20 in attorney’s fees.

Plaintiff State Farm Mutual Automobile Insurance Company’s Motion to Set Aside Dismissal, Enforce Settlement, and Enter Judgment is GRANTED. Dismissal entered on March 23, 2021, is vacated, and judgment is entered for Plaintiff and against Defendant for $9,112.77 as follows: principal amount of $7,106.74, $673.08 in interest, $570.75 in costs, and $762.20 in attorney’s fees.

[1] Counsel’s declaration contains a typographical error as Counsel requests $7620.20 in attorney’s fees. The Memorandum of Costs lists attorney’s fees in the amount of $762.20 and Counsel’s calculations demonstrate that the correct request is for $762.20.

[2] Memorandum of Points and Authorities contains a typographical error as the motion fee is listed as $6. (Memorandum p. 6.) However, the correct motion fee of $60.00 is reflected in the Memorandum of Costs.