Judge: Latrice A. G. Byrdsong, Case: 20STLC05340, Date: 2024-04-08 Tentative Ruling

*** Please Note that the Judicial Officer Presiding in Department 25 is Commissioner Latrice A. G. Byrdsong ***
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Case Number: 20STLC05340    Hearing Date: April 8, 2024    Dept: 25

Hearing Date:                         Monday, April 08, 2024

Case Name:                             STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY v. HECTOR CUEVAS VARGAS.

Case No.:                                20STLC05340

Motion:                                   Motion to Vacate Dismissal and Enter Judgment

Moving Party:                         Plaintiff State Farm Mutual Automobile Insurance Co.

Responding Party:                   None

Notice:                                    OK

 

Tentative Ruling:                    Plaintiff State Farm Mutual Auto Insurance Co.’s Motion to Vacate Dismissal and Enter Judgment is GRANTED.  The Dismissal entered on 07/20/2022 is set aside and vacated, and Judgment is entered for Plaintiff and against Defendant in the amount of $5,500.00.

 

SERVICE: 

 

[X] Proof of Service Timely Filed (CRC, rule 3.1300)                      OK

[X] Correct Address (CCP §§ 1013, 1013a)                                      OK

[X] 16/21 Court Days Lapsed (CCP §§ 12c, 1005(b))                       OK 

 

OPPOSITION:          None filed as of March 25, 2024                    [   ] Late          [X] None 

REPLY:                     None filed as of March 29, 2024                    [   ] Late          [X] None 

 

BACKGROUND

 

On June 25, 2020, Plaintiff State Farm Mutual Automobile Insurance (“Plaintiff”) filed an automobile subrogation action against Defendant Hector Cuevas Vargas (“Defendant”).

 

Defendant filed his Answer to the Complaint on November 12, 2020.

 

On July 13, 2023, Plaintiff filed a notice that a conditional settlement agreement had been reached among the parties. Plaintiff filed a joint stipulation between itself and the Defendant indicating that the parties had reached a settlement for $10,000.00 and requested the case dismissed without prejudice.

 

On July 20, 2023, the Court ordered the dismissal of the case without prejudice pursuant to the Stipulation for Dismissal with the Court retaining jurisdiction pursuant CCP § 664.6.

 

On January 29, 2024, Plaintiff filed the instant Motion to Vacate Dismissal and Enter Judgment Pursuant to CCP § 664.6.

 

No opposition has been filed.

 

MOVING PARTY POSITION

 

Plaintiff prays for the Court to set aside the dismissal entered on July 20 2023, and enter judgment against Defendant in the sum of $5,500.00 for the following: the principal amount of $10,000.00 less $5,000.00 in payments made by Defendant’s insurance carrier, plus court cost totaling $500.00 consisting of: $370.00 for the complaint filing fee, $89.50 for the service of process fee, and $60.00 for the motion fee (costs are capped at $500.00 by the agreement). Plaintiff states that the Defendant has failed to make any monthly payments under the stipulation. Around December 19, 2023, Plaintiff mailed a default letter to the Defendant regarding the missed payments as required by the Agreement. Since notifying the Defendant about his default, Plaintiff alleges that Defendant failed to resolve his outstanding payments. Thus, because of the payment default, Plaintiff brings the instant motion.

 

OPPOSITION

 

            No opposition has been filed.

 

REPLY

 

            No reply has been filed.

 

ANALYSIS

 

I.          Legal Standard

Code of Civil Procedure section 664.6 (“CCP § 664.6”) states: “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, subd. (a) [emphasis added].) For purposes of the statute, “a writing is signed by a party if it is signed by any of the following [among other individuals]: (1) ¶ The party. (2) ¶ An attorney who represents the party.” (Code Civ. Proc., § 664.6, subd. (b) [emphasis added].)

 

“On a motion to enforce, the court must determine whether the settlement agreement is valid and binding. [Citation.] The court assesses whether the material terms of the settlement were reasonably well-defined and certain, and whether the parties expressly acknowledged that they understood and agreed to be bound by those terms. [In re Marriage of Assemi (1994) 7 Cal.4th 896, 911.]” (Estate of Jones (2022) 82 Cal.App.5th 948, 952.)

 

The court may interpret the terms and conditions of a settlement (Fiore v. Alvord (1985) 182 Cal.App.3d 561, 566), but the court may not create material terms of a settlement, as opposed to deciding what terms the parties themselves have previously agreed upon (Weddington Productions, Inc. v. Flick (1998) 60 Cal.App.4th 793, 810).

 

II.        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.) ‘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.’” (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 signed a stipulation containing the parties’ agreement for the Court to retain jurisdiction under Code of Civil Procedure §664.6 to enforce the terms of the Stipulation and enter judgment in the event of default. (07-13-23 Stipulation.) Before dismissing the action, the parties signed the Stipulation and submitted it to the Court. (Id. at p. 3.) On July 20, 2023, the Court dismissed the entire case without prejudice, according to the Stipulation, and expressly stated that it “shall retain jurisdiction pursuant to CCP § 664.6.” (07-18-2023 Order for Dismissal.) Therefore, the Court finds that the Stipulation complies with the requirements under CCP § 664.6, and that it has retained jurisdiction to enter judgment pursuant to the parties’ Stipulation.

 

B. Entry of Judgment

 

The Settlement Agreement, filed on July 13, 2023, provides that the parties agreed to settle the matter for a principal sum of $10,000.00, with Defendant’s insurance carrier making an initial payment of 5,000.00 by August 20, 2022. (Harlan M. Reese, Esq. Decl. ¶ 2, Exh. A.) Defendant would subsequently make monthly payments of $100.00 beginning on December 01, 2022, until the remaining settlement amount was paid in full. (Id.) Plaintiff provides the Court with the declaration of its counsel who avers that Defendant’s insurance carrier made the one-time payment of $5,000.00. (Id. ¶ 4.) However, the Defendant failed to make any monthly payments pursuant to the Agreement. (Id. ¶ 5.) Counsel declares that per the Agreement, around December 19, 2023, Plaintiff mailed Defendant a default letter regarding the missed payments. (Id. ¶ 6; Exh. C.) Per the Agreement, if no payment correcting the default was made within fourteen (14) days of issuing a default letter, Plaintiff was entitled to file a motion vacating the dismissal and have judgment entered against the Defendant. (Id. ¶ 7.) Accordingly, due to Defendant’s failure to comply with the Settlement Agreement, Plaintiff requested that a judgment be entered against the Defendant. (Id. ¶ 8.)

The Court finds the Settlement Agreement valid and enforceable under CCP § 664.6. Here, Plaintiff provides evidence that the Defendant has not made any payments or cured the default after Plaintiff sent notice. (Id. ¶¶ 5-7.) Therefore, since a valid and signed settlement agreement between the parties has been breached, and the Court retains jurisdiction to enter judgment, the motion satisfies the requirements under CCP § 664.6.

Accordingly, Plaintiff’s Motion to Vacate Dismissal and Enter Judgment is GRANTED. Dismissal entered on July 20, 2023, is vacated. Judgment is entered for the Plaintiff and against the Defendant in the amount of $5,500.00 for the following: the principal amount of $10,000.00 less $5,000.00 in payments made by Defendant’s insurance carrier, plus court cost totaling $500.00 consisting of: $370.00 for the complaint filing fee, $89.50 for the service of process fee, and $60.00 for the motion fee (costs are capped at $500.00 by the agreement).

 

III.       Conclusion

           

Plaintiff State Farm Mutual Auto Insurance Co.’s Motion to Vacate Dismissal and Enter Judgment is GRANTED.

 

The Dismissal entered on 07/20/2022 is set aside and vacated, and Judgment is entered for the Plaintiff and against the Defendant in the amount of $5,500.00.

Moving party is ordered to give notice.