Judge Latrice A. G. Byrdsong, Case Number: 18STLC03414, Date: 2024-02-28 Tentative Ruling

Judge: Latrice A. G. Byrdsong, Case: 18STLC03414, Date: 2024-02-28 Tentative Ruling

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Case Number: 18STLC03414 Hearing Date: February 28, 2024 Dept: 25

Hearing Date: Wednesday, February 28, 2024

Case Name: STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, a corporation v. RICHARD VARGHESE, an individual; and DOES 1-40

Case No.: 18STLC03414

Motion: Motion to Vacate Dismissal and Enforce Settlement Agreement and Enter Judgment

Moving Party: Plaintiff State Farm Mutual Automobile Insurance Company

Responding Party: None.

Notice: OK

Tentative Ruling: Plaintiff State Farm Mutual Automobile Insurance Company’s Motion to Vacate Dismissal and Enforce Settlement Agreement and Enter Judgment is GRANTED.

The dismissal entered on 05/14/2020 is set aside and vacated , and “Judgment by Court Pursuant to Stipulation” in the total amount of $14,443.51 is entered in favor of Plaintiff and against Defendant Richard Varghese.

BACKGROUND

On February 27, 2018, Plaintiff State Farm Mutual Automobile Insurance Company (“Plaintiff”) filed an action against Defendant Richard Varghese (“Defendant”) for subrogation, stemming from an automobile collision that occurred on December 7, 2016 between Defendant, on the one hand, and an individual insured by Plaintiff’s automobile insurance policy, on the other hand. See generally Compl. Plaintiff compensated the insured for claimed damages in the total amount of $16,070.54 and filed the instant claim against Defendant for allegedly causing the damages. Id. at. ¶¶ 13-16. On April 12, 2018, Defendant filed an Answer to the Complaint.

On January 23, 2020, Plaintiff filed a Notice of Settlement. Subsequently, on May 8. 2020, 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 $11,947.78. See May 8, 2020 Stipulation and Order. On May 14, 2020, the Court granted the order and dismissed the entire case without prejudice pursuant to the Stipulation. See May 14, 2020 Order.

On December 22, 2023, Plaintiff filed the instant Motion to Vacate Dismissal and Enforce a Settlement Agreement and Enter Judgment (“Motion”).

MOVING PARTY POSITION

Plaintiff asserts that the parties signed the Stipulation that contains 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. The Court retained jurisdiction pursuant to Code of Civil Procedure § 664.6. Pursuant to the Stipulation, the parties agreed to settle the matter for $11,947.78. An initial payment of $2,447.78 was to be made by Defendant’s insurance carrier, and beginning on May 1, 2020, Defendant was required to make monthly payments of $100.00 until the settlement is paid in full. Defendant’s insurance carrier only made a payment of $298.78 on January 12, 2021, Plaintiff has only received $3,500.00 from Defendant directly. Despite Plaintiff’s attempt to remind Defendant of his obligations under the Stipulation by written notice, Defendant remains in default. Also, Plaintiff is entitled to recovery of costs per the Stipulation.

OPPOSITION

None filed as of February 23, 2024.

REPLY

None filed as of February 23, 2024.

ANALYSIS

I. Motion to Enforce Settlement

A. Legal Standard

“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.” Code Civ. Proc., § 664.6(a).

C. Merits

Here, Plaintiff seeks to enforce the Stipulation between the parties and enter judgment against Defendant in the amount of $14,443.51, consisting of the principal settlement amount, plus interest accrued thereon at 7% per annum, court costs, and attorney fees, and less payments received from Defendant and his insurance carrier. Notice of Motion at pp. 1-2.

Plaintiff argues that Defendant has defaulted on payments and Plaintiff is seeking to set aside the dismissal and enter judgment pursuant to the Stipulation. Motion at pp. 1-2. The Stipulation Agreement filed on May 8, 2020, provides that Plaintiff and Defendant agreed to dismiss the action on the premise that Defendant would compensate Plaintiff for the settlement amount of $11,947.78. See Stipulation at ¶ 4. Defendant’s insurance carrier made a payment of $298.78 on January 12, 2021, which is less than the agreed upon one-time payment of $2,447.78. Mahfouz Decl. ¶ 7; Stipulation at ¶ 4(A). Defendant was also obligated to make monthly payments of $100 beginning on May 1, 2020, but Defendant has stopped monthly payments since March 8, 2023. Mahfouz Decl. ¶ 6, 9. Defendant has only paid $3,500, and Plaintiff has sent written notices of the default on October 6, 2023 and November 3, 2023 as required under the stipulation. Id., Exh. B. Defendant has not remedied this default. Id. at 10.

Because Defendant did not remedy the default within ten (10) days of receiving notice, Plaintiff is entitled to have any dismissal in this action set aside and judgment entered for the principal amount, minus credit for payments received, plus costs, attorney fees, and interest at the legal rate. See Stipulation at ¶ 7. Therefore, Plaintiff seeks to have the dismissal set aside and judgment entered in the amount of $14,443.51 as follows: $16,070.54 (principal amount), minus $3,798.78 (combined payment made by Defendant and Defendant’s insurance carrier), plus $505.00 (court costs), $794.64 (prejudgment interest at an annual rate of 7%), and $872.11 (attorney fees). Motion at pgs. 4-6. The court costs consist of $430 in filing fees and $75.00 service fee. See Memorandum of Costs. With regard to the request for pre-judgment interest, Plaintiff asserts that the daily interest rate, based on the principal damage with an annual rate of interest of 7%, amounts to $3.08. Motion at pg. 5. Because 258 days has elapsed since the default date, the total prejudgment interest is $794.64. Ibid. Moreover, Plaintiff seeks attorney fees based on the amount permitted under Local Rule 3.214, which equates to $872.11

Therefore, because the Stipulation is valid under Code of Civil Procedure § 664.6 and Defendant is in breach of the Stipulation, the Court grants Plaintiff’s motion.

III. Conclusion

Based on the foregoing, Plaintiff’s Motion to Vacate Dismissal and Enforce Settlement Agreement and Enter Judgment is GRANTED.

The Moving party is ordered to give notice.