Judge: Latrice A. G. Byrdsong, Case: 20STLC07002, Date: 2023-10-19 Tentative Ruling

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Case Number: 20STLC07002    Hearing Date: January 17, 2024    Dept: 25

Hearing Date:                         Wednesday, January 17, 2024

Case Name:                             STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY v. HENRY NAVIDAD MOLINA

Case No.:                                20STLC07002

Motion:                                   Motion to Set Aside Dismissal; and Enter Judgment (CCP 664.6)

Moving Party:                         Plaintiff State Farm Mutual Auto Insurance

Responding Party:                   None

Notice:                                    OK


 

Tentative Ruling:                    Plaintiff State Farm Mutual Automobile Insurance Co.’s Motion to Set Aside Dismissal and Enter Judgment is GRANTED, and judgment is entered for Plaintiff and against Defendant Molina for $16,965.27.


 

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 January 03, 2024                  [   ] Late          [X] None 

REPLY:                     None filed as of January 09, 2024                  [   ] Late          [X] None 

 

BACKGROUND

 

On August 18, 2020, Plaintiff State Farm Mutual Automobile Insurance Company (“Plaintiff”) filed an action against Defendants Henry Navidad Molina (“Henry”) and Raul Fuentes Molina (“Raul”) (collectively “Defendants”) 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. Plaintiff compensated the insured for claimed damages in the amount of $19,778.32 and filed the instant claim against Defendants for allegedly causing the damages.

 

On January 7, 2021, Defendants filed a joint Answer to the Complaint.

 

On November 28, 2022, Plaintiff filed a Notice of Settlement.

 

On December 2, 2022, pursuant to Plaintiff’s request, the Court dismissed Defendant Raul with prejudice.

 

Subsequently, Plaintiff filed a Stipulation for Entry of Judgment in the Event of Default

(“Stipulation”), signed by both parties, to dismiss the action on the premise that Defendant would compensate Plaintiff for the settlement amount of $7,587.20. On December 6, 2022, the Court dismissed the entire case without prejudice pursuant to the Stipulation.

 

On June 27, 2023, Plaintiff filed the instant Motion to Set Aside Dismissal and Enter Judgment (“Motion”). On September 13, 2023, the Court continued the hearing citing issues with service on Defendant’s Counsel.

 

On September 21, 2023, Plaintiff filed an amended motion.                                                

 

No opposition has been filed.

 

MOVING PARTY POSITION

 

Plaintiff prays for the Court to set aside its dismissal and enter judgment against Defendant in the sum of $16,965.27 for the following: principal amount of $19,778.32, less $3,337.20 in payments made by Defendant and his insurance carrier, plus filing costs of $72, and lawsuit filing fee of $452.15. Plaintiff argues that Defendant’s default in payments constituted a breach of the parties’ Stipulation, thus making Plaintiff entitled to an entry of judgment by the Court.

 

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 for Entry of Judgment in the Event of Default (“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. (12-2-22 Stipulation ¶ 10.) Prior to the dismissal of this action, the Stipulation was signed by the parties and submitted to the Court. (Ibid. at pp. 4-5.) On December 6, 2022, the Court dismissed the entire case without prejudice pursuant to the Stipulation and expressly stated that it “RETAINS JURISDICTION OF THIS CASE IN ACCORDANCE WITH AND PURSUANT TO CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 664.6.” (12-6-22 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 on December 2, 2022, provides that Plaintiff and Defendant agreed to dismiss the action on the premise that Defendant would compensate Plaintiff for the settlement amount of $7,587.20. (12-2-22 Stipulation ¶ 4.) Pursuant to the Stipulation, Defendant’s insurance carrier Alliance United Insurance Company would make a payment of $2,587.20 within thirty (30) days of Defendant’s execution of the agreement. (Ibid. at ¶ 2(i).) Defendant would pay the remaining balance of $5,000 with a $500 down payment on or before November 1, 2022, and subsequent $50 monthly payments commencing on December 1, 2022, and continuing on the first day of each month, until the balance is paid in full. (Ibid. at ¶ 2(ii).) Defendant would also be responsible for the balance not paid by his insurance carrier. (Id. at ¶ 2(i).) All parties signed the Stipulation. (Id. at pp. 4-5.)

 

The Stipulation also provides that Defendant will have a fifteen (15) day grace period to make payments. (Id. at ¶ 8.) In the event Defendant fails to make payments, Plaintiff will give written notice of default and Defendant will have an additional ten (10) days to cure the default. (Ibid.) If Defendant does not cure the default, “Plaintiff may immediately cause Judgment to be entered pursuant to the terms set forth in this Stipulation for the full amount of the agreed upon judgement as set forth in Paragraph 1 less any monies paid to date of the breach; and shall also file a partial Satisfaction of Judgment for all sums previously paid pursuant to this Stipulation.” (Id. at ¶ 6.) If Defendant’s contact information changes, he is responsible for providing written notice to Plaintiff, otherwise Plaintiff will send the notice of default to the address indicated in the Stipulation. (Id. at ¶ 8.)

 

On June 27, 2023, Plaintiff filed the instant Motion alleging that Defendant breached the Stipulation. (Mot. pp. 1-2.) Plaintiff’s Counsel, Susan M. Benson, states that Defendant’s insurance carrier made a payment of $2,587.20. (Original motion Benson Decl. ¶ 5.) Defendant made payments in the total amount of $550. (Id.) On April 13, 2023, Counsel sent default notices to Defendant to pay the remaining sum of $4,450.00. (Id. at ¶ 6, Ex. 2.) After filing the original motion, Defendant made an additional payment of $200 on September 12, 2023. (Amended Benson Decl. ¶ 7.) However, this payment did not cure the entire past due balance under the Stipulation, and as of today’s date there remains a past due balance of $250. (Id.)

 

Thus, Plaintiff requests that the Court enter judgment for Plaintiff and against Defendant in the amount of $16,965.27 as follows: principal amount of $19,778.32, less $3,337.20 in payments made by Defendant and his insurance carrier, plus filing costs of $72, and lawsuit filing fee of $452.15. (Id. at ¶ 8.) The Court finds the Stipulation to be valid and enforceable under Code of Civil Proc. § 664.6. Plaintiff provides evidence that Defendant stopped making payments and has not cured the default. Thus, a valid and signed stipulation agreement was breached, and the Court retained jurisdiction to enter judgment upon breach. Additionally, as Plaintiff has now properly served Defendant, this motion is properly granted.

 

Accordingly, Plaintiff’s Motion to Set Aside Dismissal and Enter Judgment is GRANTED. Dismissal entered on December 06, 2022, is vacated, and judgment is entered for Plaintiff and against Defendant in the amount of $16,965.27 for the following: principal amount of $19,778.32, less $3,337.20 in payments made by Defendant and his insurance carrier, plus filing costs of $72, and lawsuit filing fee of $452.15.

 

III.       Conclusion

           

            Plaintiff State Farm Mutual Automobile Insurance Co.’s Motion to Vacate Dismissal and Enter Judgment is GRANTED, and judgment is entered for Plaintiff and against Defendant Molina for $16,965.27.

 

Moving party is ordered to give notice.