Judge: Katherine Chilton, Case: 20STLC02863, Date: 2023-04-11 Tentative Ruling

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Case Number: 20STLC02863     Hearing Date: April 11, 2023    Dept: 25

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

MOVING PARTY:   Plaintiff Mercury Insurance Company

RESP. PARTY:         None

MOTION TO VACATE DISMISSAL, ENFORCE SETTLEMENT, AND ENTER JUDGMENT

(CCP § 664.6)

TENTATIVE RULING:

Plaintiff Mercury Insurance Company’s Motion to Enter Judgment Pursuant to Stipulation and Settlement Agreement is GRANTED.  Dismissal entered on September 1, 2021, is vacated, and judgment is entered for Plaintiff and against Defendant for $6,623.80 as follows: $5,229.30 in principal amount, $459.50 in costs, $875.00 in attorney’s fees, and $60.00 in motion filing fee.

Plaintiff is ordered to file a Proposed Order.

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 April 6, 2023.               [   ] Late                      [X] None

REPLY:                     None filed as of April 6, 2023.               [   ] Late                      [X] None

ANALYSIS:

I.                Background

On March 30, 2020, Plaintiff Mercury Insurance Company (“Plaintiff”) filed an action against Defendant Andrea Pogany (“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 and filed the instant claim against Defendant for allegedly causing the damages.  (Ibid. pp. 2-4.)  No responsive pleadings were filed.

On September 1, 2021, Plaintiff filed a Stipulation and Settlement Agreement (“Stipulation”), signed by both parties, to dismiss the action on the premise that Defendant would compensate Plaintiff for the settlement amount.  (9-1-21 Stipulation.)  On the same day, the Court dismissed the entire case with prejudice pursuant to the Stipulation.  (Ibid. at p. 3.)

On January 10, 2023, Plaintiff filed the instant Motion to Enter Judgment Pursuant to Stipulation and Settlement Agreement (“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 Stipulation and Settlement Agreement containing the parties’ agreement for the Court to retain jurisdiction pursuant to Code of Civil Procedure § 664.6 to enforce the terms of the Agreement and enter judgment in the event of default.  (9-1-21 Stipulation ¶¶  1-3.)  Prior to the dismissal of this action, the Stipulation was signed by the parties and submitted to the Court.  (Ibid. at p. 2.)  On September 1, 2021, the Court dismissed the entire case pursuant to the Stipulation and Settlement Agreement and expressly stated that it “retains jurisdiction to enforce the terms of the written settlement agreement pursuant to Code of Civil Procedure section 664.6.”  (Ibid. at p. 3.)

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 and Settlement Agreement filed by Plaintiff on September 1, 2021, provides that Plaintiff and Defendant agreed to dismiss the action on the premise that Defendant’s insurance carrier would pay the sum of $8,159.40, the insurance policy limit, “on the date of the last signature on this agreement.”  (9-1-21 Stipulation p. 4.)  Moreover, Defendant would pay the remaining balance of $7,847.16 as follows:

$1,307.86 on or before July 1, 2021,

$1,307.86 on or before January 1, 2022,

$1,307.86 on or before July 1, 2022,

$1,307.86 on or before January 1, 2023,

$1,307.86 on or before January 1, 2024,

$1,307.86 on or before July 1, 2024.

(Ibid.)  All parties signed the Stipulation and Settlement Agreement.  (Ibid. at pp. 2, 6.)

The Settlement Agreement also provides that if any of the payments are not received, Plaintiff or its counsel will send notice of default to Defendant’s former attorney via email.  (Ibid. at p. 4.)  If Defendant does not cure default within ten (10) calendar days of receiving notice, “judgment shall be entered against Defendant Andrea Pogany in the amount of $16,006.56 plus costs of $370.00 for filing and $89.50 for service” minus any payments made.  (Ibid.)  Moreover, “[i]n any motion or proceeding to enforce the settlement, the prevailing party shall be entitled to actual attorney fees and costs.”  (Ibid. at pp. 4, 6.)

            Plaintiff moves for an order entering judgment pursuant to the Stipulation and Settlement Agreement filed on September 1, 2021.  (Mot. p. 1.)  Plaintiff seeks judgment in the principal amount of $5,229.30, costs of $459.50 (filing fee of $370.00 and service cost of $89.50), attorney’s fees of $875.00, and filing fee for the instant Motion of $60.00, for a total of $6,623.80.  (Ibid. at p. 2.)

Plaintiff’s counsel states that Defendant’s insurance carrier made a payment of $8,159.40.  (Thai Decl. ¶ 5.)  Defendant made payments in the total amount of $2,617.86, but has not made any more payments since February 2022.  (Ibid.)  Plaintiff sent several notices of default to Defendant and her attorney.  (Ibid., Ex. 3.)  However, Defendant has failed to comply with the Settlement Agreement.  (Ibid. at ¶ 6.)  Plaintiff seeks to have the dismissal set aside and judgment entered in the amount of $6,623.80 as follows: $5,229.30 (principal amount), $459.50 in costs ($370.00 filing fee and $89.50 service costs), $875.00 (attorney’s fees), and $60.00 (motion filing fee).  (Ibid. at ¶ 6.)

Plaintiff calculates attorney’s fees for 1.5 hours spent on preparing the instant Motion and one (1) hour addressing the opposition and appearing at the hearing, at a billing rate of $350.00 per hour.  (Ibid.)

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.  Thus, a valid and signed stipulation agreement was breached and the Court retained jurisdiction to enter judgment upon breach.

The Court also finds that the Settlement Agreement allows Plaintiff to recover attorney’s fees and costs.  Moreover, Plaintiff’s request for attorney’s fees and costs is reasonable.

Accordingly, Plaintiff’s Motion to Enter Judgment Pursuant to Stipulation and Settlement Agreement is GRANTED.  Dismissal entered on September 1, 2021, is vacated, and judgment is entered for Plaintiff and against Defendant for $6,623.80 as follows: 5,229.30 in principal amount, $459.50 in costs, $875.00 in attorney’s fees, and $60.00 in motion filing fee.

IV.           Conclusion & Order

For the foregoing reasons,

Plaintiff Mercury Insurance Company’s Motion to Enter Judgment Pursuant to Stipulation and Settlement Agreement is GRANTED.  Dismissal entered on September 1, 2021, is vacated, and judgment is entered for Plaintiff and against Defendant for $6,623.80 as follows: $5,229.30 in principal amount, $459.50 in costs, $875.00 in attorney’s fees, and $60.00 in motion filing fee.

Plaintiff is ordered to file a Proposed Order.

Moving party is ordered to give notice.