Judge Latrice A. G. Byrdsong, Case Number: 20STLC04901, Date: 2023-11-13 Tentative Ruling

Judge: Latrice A. G. Byrdsong, Case: 20STLC04901, Date: 2023-11-13 Tentative Ruling

Case Number: 20STLC04901 Hearing Date: November 13, 2023 Dept: 25

Hearing Date: Monday, November 13, 2023

Case Name: STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY v. LEALANI VARGAS and DOES 1-10

Case No.: 20STLC04901

Motion: Motion to Vacate Dismissal and Enter Judgment (CCP § 664.6)

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 Enter Judgment is GRANTED. The Dismissal entered on 01/04/2022 is set aside and vacated.

Plaintiff is ordered to submit a proposed judgment for the Court’s approval within [10] days of this Court's Order.

BACKGROUND

On June 11. 2020, Plaintiff State Farm Mutual Automobile Insurance Company (“Plaintiff”) filed a Subrogation action against Defendant Lealani Vargas (“Defendant”) and DOES 1-10, inclusive, stemming from an automobile collision between Defendant and an individual insured by Plaintiff that occurred on or about September 25, 2019. Plaintiff alleges that it compensated the insured individual for claimed damages in the amount of $18,114.36 and now seeks recovery in that amount from Defendant.

On January 3, 2022, Plaintiff and Defendant filed a Stipulation for Dismissal with Reservation to Vacate and Enter Judgment Upon Breach. On January 4, 2022, this Court dismissed the entire case without prejudice pursuant to the stipulation.

On August 25, 2023, Plaintiff filed Motion to Vacate Dismissal and Enter Judgment Pursuant to Code of Civil Procedure, Section 664.6. No opposition was filed.

MOVING PARTY POSITION

Plaintiff moves for an order vacating the dismissal and entering judgment in this action pursuant to Code of Civil Procedure, Section 664.6. Plaintiff asserts that it stipulated to settle the case with Defendant and Defendant breached said agreement in failing to pay as agreed.

OPPOSITION

None as of 11/7/23.

REPLY

None as of 11/7/23.

ANALYSIS

I. Motion to Vacate Dismissal and Enter Judgment

A. Legal Standard

Pursuant the Code of Civil Procedure (CCP) Section 664.6: “If parties to pending litigation stipulate, in a writing signed by the parties outside 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.”

“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.” (Sully-Miller Contracting Co. v. Gledson/Cashman Construction, Inc. (2002) 103 Cal.App.4th 30, 37;Critzer v. Enos (2010) 187 Cal.App.4th 1242, 1262.) In ruling on a motion under § 664.6, the trial judge may receive oral testimony, or may determine the motion upon declarations alone. (Corkland v. Boscoe (1984) 156 Cal.App.3d 989, 994.) Where the agreement was reached at a court hearing, the court can resolve the dispute on the basis of its own notes or recollection of what was agreed to (as well as any transcripts of the proceedings). (Richardson v. Richardson (1986) 180 Cal.App.3d 91, 97.)

B. Discussion

Generally, courts lose subject matter jurisdiction when an action is voluntarily dismissed. (Hagan Engineering, Inc. v. Mills (2003) 115 Cal.App.4th 1004, 1009.) CCP section 664.6 provides the authority for the Court’s retention of personal jurisdiction to enforce the settlement “if requested by the parties.” The stipulation as to jurisdiction must conform to the same requirements necessary for enforcement of the settlement agreement. (Wackeen v. Malis (2002) 97 Cal.App.4th 429, 440.) It is not enough simply to provide for a retention of jurisdiction in the settlement agreement. (Mesa RHF Partners, L.P. v. City of Los Angeles (2019) 33 Cal.App.5th 913, 918.) Instead, the request to retain jurisdiction must be filed with the court: “the parties could have easily invoked section 664.6 by filing a stipulation and proposed order either attaching a copy of the settlement agreement and requesting that the trial court retain jurisdiction under section 664.6 or a stipulation and proposed order signed by the parties noting the settlement and requesting that the trial court retain jurisdiction under section 664.6. The process need not be complex. But strict compliance demands that the process be followed.” (Ibid.; see Sayta v. Chu (2017) 17 Cal.App.5th 960, 966-968 [no subject matter jurisdiction to enforce settlement per CCP § 664.6 because parties failed to ask court to retain jurisdiction before case dismissed.)

Here, Plaintiff State Farm Mutual Automobile Insurance Company (“Plaintiff”) has retained the Court’s jurisdiction over this case. Plaintiff has provided the Stipulation for Dismissal with Reservation to Vacate and Enter Judgment Upon Breach, which states that “The parties stipulate that the court shall retain jurisdiction pursuant to CCP § 664.6 to enforce this agreement.” (Reese Decl., ¶ 2, Exh. A.) Furthermore, on January 4, 2022, this 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.” (Order of Dismissal 1/4/22.)

Moreover, the stipulation was signed by both parties and premised dismissal of the action on Defendant compensating Plaintiff for the settlement amount of $4,800.00. (Reese Decl., ¶ 2, Exh. A.) Plaintiff states that Defendant made monthly payments pursuant to the stipulation totaling $2,500.00, but has since defaulted on payments. (Id. at ¶ 4.) Plaintiff states that on or about February 21, 2023, it mailed Defendant a default letter regarding the missed payments. (Id. at ¶ 5, Exh. B.) Additionally, Plaintiff argues that pursuant the terms of the stipulation, since payment was not made within 14 days, it is entitled to have any dismissal in this action set aside and judgment entered minus credit for payments received. (Id. at ¶ 6.) Plaintiff states that Defendant has a principal balance of $2,300.00. (Reese Supp. Decl., ¶ 5.) Plaintiff contends that it seeks $519.50 incurred in court costs in addition to the principal balance in a total judgment amount of $2,819.50. (Id. at ¶¶ 6-7.)

Therefore, the Court finds that Plaintiff’s Motion to Vacate Dismissal and Enter Judgment is warranted under law. The Stipulation for Dismissal with Reservation to Vacate and Enter Judgment Upon Breach is valid and enforceable under the Code of Civil Procedure (CCP) Section 664.6. Plaintiff provided evidence that Defendant has not made any monthly payments since defaulting and did not respond to Plaintiff’s notice of default letter.

II. Conclusion

Accordingly, Plaintiff State Farm Mutual Automobile Insurance Company Motion to Vacate Dismissal and Enter Judgment should be GRANTED. Plaintiff is ordered to submit a proposed judgment for the Court’s approval within [10] days of this Court's Order.