Judge: Katherine Chilton, Case: 20STLC06984, Date: 2022-12-29 Tentative Ruling

Case Number: 20STLC06984     Hearing Date: December 29, 2022    Dept: 25

PROCEEDINGS:      MOTION TO SET ASIDE DISMISSAL AND ENTER JUDGMENT

MOVING PARTY:   Plaintiff State Farm Mutual Automobile Insurance Co.

RESP. PARTY:         None

MOTION TO SET ASIDE DISMISSAL AND ENTER JUDGMENT

(CCP § 664.6)

TENTATIVE RULING:

Plaintiff State Farm Mutual Automobile Insurance Company’s Motion to Set Aside Dismissal and Enter Judgment is GRANTED.  Judgment to be entered against Defendant Roy Rodriguez in the amount of $14,151.51.

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 December 20, 2022.                     [   ] Late                      [X] None

REPLY:                     None filed as of December 20, 2022.                     [   ] Late                      [X] None

ANALYSIS:

I.                Background

On August 18, 2020, Plaintiff State Farm Mutual Automobile Insurance Company (“Plaintiff”) filed an action against Defendants Roy Rodriguez (Roy”) and Reanne Rodriguez (“Reanne”) (collectively, “Defendants”) for subrogation, stemming from an automobile accident between Defendants and one of Plaintiff’s insureds (Odeza Guingao).  (Complaint, p. 2, ¶ 5-7.)  Plaintiff compensated its insured for their claimed damages in the amount of $24,241.51 and filed the instant action against Defendants for allegedly causing the damages.  (Id. p. 2, ¶ 8.)  On December 2, 2020, Defendant Reanne filed an answer and on January 21, 2021, Defendant Roy filed an answer.  On September 23, 2021, Plaintiff dismissed Defendant Reanne without prejudice.

On February 17, 2022, Plaintiff and Defendant Roy stipulated to dismiss the action without prejudice on the premise that Defendant Roy would compensate Plaintiff in the amount Plaintiff had paid the insured.  (2-17-22 Stipulation for Entry of Judgment in the Event of Default.)  On April 1, 2022, the Court dismissed the case without prejudice pursuant to the Stipulation.  (4-1-22 Order on Stipulation for Settlement and Dismissal Pursuant to CCP 664.6).

On September 29, 2022, Plaintiff filed the instant Motion to Set Aside Dismissal and Enter Judgment (“the Motion”) pursuant to Code of Civil Procedure § 664.6, alleging that Defendant Roy breached the Stipulation Agreement and requesting that the Court set aside the dismissal and enter judgment for the remaining balance of the Stipulation Agreement.  (Benson Decl.  ¶¶ 5.)

No opposition has been filed.

II.              Legal Standard

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.  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.’”  (Mesa RHF Partners, L.P. v. City of Los Angeles (2019) 33 Cal.App.5th 913, 917 [quoting In re Conservatorship of Martha P. (2004) 117 Cal.App.4th 857, 967) (alteration in original).)  “‘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.’”  (Id. (quoting CCP § 664.6) (emphasis in original).)  “‘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.’”  (Id. (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.’”  (Id. (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.’”  (Id. (quoting Wackeen, supra, 97 Cal.App.4th at 440).)

Here, the parties filed a Stipulation for Entry of Judgment in the Event of Default (“Stipulation”) containing the parties’ agreement for the court to retain jurisdiction pursuant to CCP § 664.6 to enforce the stipulation.  (2-17-22 Stipulation and Order.)  The Stipulation was signed by the parties and submitted to the court along with an order for dismissal with reservation to vacate and enter judgment upon breach, prior to the dismissal of this case.  (Id.).  The Court entered the order for dismissal on April 1, 2022.  (4-1-22 Order).  As the Stipulation complies with CCP § 664.6 requirements, the Court has retained jurisdiction to enter judgment pursuant to the parties’ stipulation.

B.    Entry of Judgment 

The Stipulation filed on February 17, 2022, provides that Plaintiff and Defendant Roy agreed to dismiss the action without prejudice on the premise that Defendant Roy would compensate Plaintiff for the amount in damages that Plaintiff had paid the insured.  (2-17-22 Stipulation.)  Pursuant to the Stipulation, Defendant Roy’s insurance carrier, AAA Insurance company, would pay the sum of $10,000, and Defendant Roy would pay the sum of $50.00 per month, commencing March 1, 2022, and continuing thereafter on the first of each succeeding month until the full balance is paid.  Upon timely payment of $21,500.00, Plaintiff would forgive the remaining balance of $2,741.51.   (Id. at 2 ¶ 2, 4.)  All parties signed the Stipulation.  (Ibid. p. 4.)

The Stipulation also provides that in the event Defendant failed to make timely payments, Plaintiff would mail a letter reminding Defendant to pay, and after 10 days of not receiving payment following the letter, Plaintiff “shall be permitted to request entry of judgment as set for hereinabove.” Judgment shall be entered for the full amount of the agreed upon judgment as set for in Paragraph 1, less any monies paid to date of the breach by bringing all payments current prior to entry of judgment and submitting such proof to Plaintiff’s counsel and the Court before any entry of judgment.  (Id.)

On April 7, 2022, Plaintiff filed the instant Motion to Set Aside/Vacate Dismissal (“the Motion”) pursuant to Code of Civil Procedure § 664.6.  Plaintiff alleges Defendant’s insurance carrier made a one-time payment of $10,000.00 and Defendant made monthly payments in the total amount of $150.00, but has since defaulted on the payments.  (Benson Decl. ¶ 5.)  On July 8, 2022, Plaintiff mailed Defendant a default letter advising that the balance then due was $11,350.00, but no payments were made since the letter was sent.  (Id. at ¶ 6, Ex. 2.)  Since Defendant defaulted and thus, breached the Stipulation Agreement, Plaintiff is entitled to entry of judgment under the Stipulation.

The Court finds the Stipulation to be valid and enforceable under Code of Civil Procedure § 664.6 and finds that Defendant Roy breached the Stipulation Agreement.  Thus, the Court GRANTS Plaintiff’s Motion to Set Aside Dismissal and Enter Judgment against Defendant Roy in the amount of $14,151.51, calculated as follows:  $24,241.51 less $10,150.00 for a total principal of $14,091.51 plus a filing fee for this Motion of $60.00.

IV.           Conclusion & Order

For the foregoing reasons, Plaintiff State Farm Mutual Automobile Insurance Company’s Motion to Set Aside Dismissal and Enter Judgment is GRANTED.  Judgment to be entered against Defendant Roy Rodriguez in the amount of $14,151.51.

Moving party is ordered to give notice.