Judge: Katherine Chilton, Case: 20STLC06588, Date: 2023-04-25 Tentative Ruling

Case Number: 20STLC06588     Hearing Date: April 25, 2023    Dept: 25

PROCEEDINGS:      MOTION TO VACATE DISMISSAL AND ENTER JUDGMENT

MOVING PARTY:   Plaintiff California Automobile Insurance Company

RESP. PARTY:         None

MOTION TO VACATE DISMISSAL AND ENTER JUDGMENT

(CCP § 664.6)

TENTATIVE RULING:

Plaintiff California Automobile Insurance Company’s Motion to Vacate Dismissal and Enter Judgment is GRANTED.  Dismissal entered on July 21, 2021, is vacated, and judgment is entered for Plaintiff and against Defendant for $4060.00 as follows: principal amount of $4,000.00 and $60.00 in 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 April 24, 2023.               [   ] Late                      [X] None

REPLY:                     None filed as of April 24, 2023.               [   ] Late                      [X] None

ANALYSIS:

I.                Background

            On August 6, 2020, Plaintiff California Automobile Insurance Company (“Plaintiff”) filed an action against Defendant Samuel Lee (“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 $17,095.23 and filed the instant action against Defendant for allegedly causing the damages.  (Ibid. pp. 2-3.)  On May 13, 2021, Defendant filed an appearance through his counsel. 

            On June 30, 2021, Plaintiff filed a Stipulation for Dismissal with Reservation to Vacate and Enter Judgment Upon Breach (“Stipulation”), signed by both parties, to dismiss the action on the premise that Defendant would compensate Plaintiff for the settlement amount of $10,000.00.  (06-30-21 Stipulation and Order.)

On July 21, 2021, the Court dismissed the entire case without prejudice pursuant to the Stipulation.  (7-21-21 Order.)

On March 23, 2023, Plaintiff filed the instant Motion to Vacate Dismissal 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 Stipulation for Dismissal with Reservation to Vacate and Enter Judgment Upon Breach (“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.  (6-30-21 Stipulation ¶ 3.)  Prior to the dismissal of this action, the Stipulation was signed by the parties and submitted to the Court.  (Ibid.)  On July 21, 2021, the Court dismissed the entire case without prejudice pursuant to the Stipulation and expressly stated that “the Court shall retain jurisdiction pursuant to CCP §664.6.”  (07-21-21 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.

B. Entry of Judgment

The Stipulation Agreement filed on June 30, 2021, provides that Plaintiff and Defendant agreed to dismiss the action on the premise that Defendant would compensate Plaintiff for the settlement amount of $10,000.00.  (6-30-21 Stipulation ¶ 2.)  Pursuant to the Stipulation, Defendant’s insurance carrier would make an initial payment of $1,000.00 and then Defendant would make monthly payments of $1,000.00 until the settlement amount is paid in full.  (Ibid.)  All parties signed the Stipulation.  (Ibid. at p. 3.)

The Stipulation also provides that Defendant will have a grace period to make payments.  (Ibid. at ¶ 3.)  In the event Defendant fails to make payments, Plaintiff will give written notice of default and Defendant will have an additional fourteen (14) days to cure the default.  (Ibid.)  If Defendant does not cure the default, “plaintiff will be entitled to have any dismissal in this action set aside and judgment entered for the settlement amount, minus credit for payments received, plus any costs associated with entering the judgment not to exceed $500.  Plaintiff shall be entitled to said judgment upon submission of a declaration by plaintiff’s counsel showing the breach and requesting that judgment be entered.”  (Ibid.)

On March 23, 2023, Plaintiff filed the instant Motion alleging that Defendant breached the Stipulation.  (Mot. pp. 1-2.)

Plaintiff’s Counsel, Harlan Reese, states that Defendant made monthly payments pursuant to the Stipulation totaling $6,000.00 but then defaulted on the remaining payments.  (Reese Decl. ¶ 4.)    On February 28, 2023, Plaintiff mailed a default letter to Defendant regarding the missed payments.   (Ibid. at ¶ 5, Ex. B.)  However, Defendant has not made any further payments.  (Ibid. at ¶ 6.)  Thus, Plaintiff requests that the Court enter judgment for Plaintiff and against Defendant in the amount of $4,060.00: principal amount of $10,000.00 less $6,000.00 in payments made by Defendant and/or Defendant’s insurance carrier, plus filing costs of $60.00.  (Ibid. at ¶ 7.)

The Court finds the Stipulation to be valid and enforceable under Code of Civil Proc. § 664.6.  Plaintiff provides evidence that Defendant did not make all 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.

Accordingly, Plaintiff’s Motion to Vacate Dismissal and Enter Judgment is GRANTED.  Dismissal entered on July 21, 2021, is vacated, and judgment is entered for Plaintiff and against Defendant for $4,060.00 as follows: principal amount of $4,000.00 and $60.00 in costs.

IV.           Conclusion & Order

For the foregoing reasons,

Plaintiff State Farm Mutual Automobile Insurance Company’s Motion to Vacate Dismissal and Enter Judgment is GRANTED.  Dismissal entered on July 21, 2021, is vacated, and judgment is entered for Plaintiff and against Defendant for $4,060.00 as follows: principal amount of $4,000.00 and $60.00 in costs.

Moving party is ordered to give notice.