Judge: Katherine Chilton, Case: 20STLC07554, Date: 2023-03-09 Tentative Ruling

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Case Number: 20STLC07554     Hearing Date: March 9, 2023    Dept: 25

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

MOVING PARTY:   Plaintiff State Farm Mutual Automobile Insurance Company

RESP. PARTY:         None

MOTION TO VACATE DISMISSAL, ENFORCE SETTLEMENT, AND ENTER JUDGMENT

(CCP § 664.6)

TENTATIVE RULING:

Plaintiff State Farm Mutual Automobile Insurance Company’s Motion to Set Aside Dismissal, Enforce Settlement, and Enter Judgment is GRANTED.  Dismissal entered on February 2, 2022, is vacated, and judgment is entered for Plaintiff and against Defendant for $10,980.85 as follows: principal amount of $9,022.26, $710.20 in interest, $526.27 in costs, and $722.12 in attorney’s fees.

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 March 7, 2023.               [   ] Late                      [X] None

REPLY:                     None filed as of March 7, 2023.               [   ] Late                      [X] None

ANALYSIS:

I.                Background

On September 4, 2020, Plaintiff State Farm Mutual Automobile Insurance Company (“Plaintiff”) filed an action against Defendant Raymond Wilson (“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 $11,070.96 and filed the instant claim against Defendant for allegedly causing the damages.  (Ibid. pp. 3-4.)  On March 22, 2021, Defendant filed an Answer to the Complaint.

On February 1, 2022, Plaintiff filed a Stipulation for Settlement and Entry of Judgment (“Stipulation”), signed by both parties, to dismiss the action on the premise that Defendant would compensate Plaintiff for the settlement amount of $5,798.70.  (2-1-22 Stipulation and Order.)  On February 2, 2022, the Court dismissed the entire case without prejudice pursuant to the Stipulation.  (2-2-22 Order.)

On November 28, 2022, Plaintiff filed a Motion to Vacate Dismissal, Enforce Settlement Agreement, and Enter Judgment (“Motion”), as well as a Memorandum of Costs.

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 Settlement and Entry of Judgment 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.  (2-1-22 Stipulation ¶ 16.)  Prior to the dismissal of this action, the Stipulation was signed by the parties and submitted to the Court.  (Ibid. at pp. 4-6.)  On February 2, 2022, the Court dismissed the entire case 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.”  (2-22-22 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 by Plaintiff on February 1, 2022, provides that Plaintiff and Defendant agreed to dismiss the action on the premise that Defendant would compensate Plaintiff for the settlement amount of $5,798.70.  (2-1-22 Stipulation ¶¶ 4-5.)  Pursuant to the Stipulation, Defendant’s insurance carrier, Progressive Insurance, would pay the balance of the policy limit available to Defendant in the amount of $2,048.70.  (Ibid. at ¶ 6A.)  Defendant would pay the remaining balance of $3,750.00 by making a lump sum payment of $1,000 no later than April 1, 2022, and beginning on October 1, 2022, making monthly payments on the first day of each month until the balance is paid in full.  (Ibid. at ¶ 6B.)  No interest would accrue as long as Defendant made monthly payments.  (Ibid. at ¶ 6C.)  All parties signed the Stipulation.  (Ibid. at pp. 4-6.)

The Stipulation also provides that Defendant will have a 10-day grace period to make payments.  (Ibid. at ¶ 11.)  If Defendant fails to make payments, Plaintiff will provide written notice of default mailed to Defendant’s address listed in the Stipulation.  (Ibid. at ¶¶ 11-12.)  If Defendant does not cure the default within ten (10) days of receiving notice, “Plaintiff may immediately cause Judgment to be entered pursuant to the terms set forth in this Stipulation for the full amount of $11,070.96, less any monies paid to date of the breach.”  (Ibid. at ¶¶ 9, 11.)

On November 28, 2022, Plaintiff filed the instant Motion alleging that Defendant breached the Stipulation and seeking judgment in the amount of $11,070.96 for the settlement amount, interest accrued at 7% per annum, attorney’s fees and costs, minus payments from Defendant’s insurance carrier.  (Mot. pp. 1-2.)

On or about March 7, 2022, Defendant’s insurance carrier made a payment of $2,048.70 to Plaintiff.  (Mahfouz II Decl. ¶ 7.)  Defendant has not made any payments.  (Ibid. at ¶ 9.)  Plaintiff’s counsel sent past due notices to Defendant on June 17, 2022 and November 17, 2022.  (Ibid. at ¶ 9, Ex. B.)  As of the date of this Motion, Defendant had not made any 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 $10,980.85 as follows: $11,070.96 (settlement amount), plus $710.20 (interest accrued at a legal rate of 7% per annum since default date of December 22, 2021), plus $526.27 (costs), plus $722.12 (attorney’s fees), minus $2,048.70 (payment made by Defendant’s insurance carrier).  (Ibid. at ¶¶ 11-12.)

Plaintiff states that it is entitled to prejudgment interest at a rate of seven (7) percent per annum, as set forth in the Stipulation.  (Memorandum p. 5; Stipulation ¶ 5.)  Plaintiff calculates interest from December 22, 2021, when Defendant signed the Settlement Agreement and was put on notice, to November 22, 2022, the date the instant Motion was prepared.  (Memorandum p. 5.)

Plaintiff calculates attorney’s fees based on the Los Angeles County Superior Court Local Rule 3.214, which provides that a recovery between $10,000.01 to $50,000 warrants $690 in attorney’s fees, plus 3% of the excess over $10,000, amounting to a total of $722.12.  (Ibid. at p. 6.)  Furthermore, Plaintiff has submitted a Memorandum of Costs showing that it requests $391.27 for filing the initial Complaint, $75 for service of process, and $60.00 for filing the instant Motion, for a total of $526.27 in costs.  (Ibid.; 11-28-22 Memorandum of Costs.)

The Court finds the Stipulation to be valid and enforceable under Code of Civil Procedure § 664.6.  Plaintiff provides evidence that Defendant did not make 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 provided 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 February 2, 2022, is vacated, and judgment is entered for Plaintiff and against Defendant for $10,980.85 as follows: principal amount of $9,022.26, $710.20 in interest, $526.27 in costs, and $722.12 in attorney’s fees.

IV.           Conclusion & Order

For the foregoing reasons,

Plaintiff State Farm Mutual Automobile Insurance Company’s Motion to Set Aside Dismissal, Enforce Settlement, and Enter Judgment is GRANTED.  Dismissal entered on February 2, 2022, is vacated, and judgment is entered for Plaintiff and against Defendant for $10,980.85 as follows: principal amount of $9,022.26, $710.20 in interest, $526.27 in costs, and $722.12 in attorney’s fees.

Moving party is ordered to give notice.