Judge: Latrice A. G. Byrdsong, Case: 23STLC01365, Date: 2024-03-07 Tentative Ruling
Case Number: 23STLC01365 Hearing Date: March 7, 2024 Dept: 25
Hearing Date: Thursday, March 07, 2024
Case Name: PAGAYA
AI DEBT SELECTION GRANTOR TRUST 2021 1 v. JUSTIN HEMAIDAN, And DOES 1 through
5, inclusive.
Case No.: 23STLC01365
Motion: Motion to Set Aside the Dismissal and Enter Judgment (CCP 664.6)
Moving Party: Plaintiff
Pagaya AI Debt Selection Grantor Trust 2021 1
Responding Party: None
Notice: OK
Tentative Ruling: Plaintiff Pagaya AI Debt Selection Grantor Trust
2021 1’s Motion to Set Aside the
09/28/2023 Dismissal and Enter Judgment is GRANTED.
Judgment is entered for Plaintiff and
against Defendant in the TOTAL amount of $8,290.94.
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 February 23, 2024 [ ] Late [X] None
REPLY: None filed as of February 29, 2024 [ ] Late [X] None
BACKGROUND
On February 24, 2023, Plaintiff Pagaya AI Debt Selection
Grantor Trust 2021 1 (“Plaintiff”) filed a cause of action for breach of
written contract against Defendant Justin Hemaidan (“Defendant”).
Defendant filed his Answer to Plaintiff’s complaint on April
03, 2023.
On September 18, 2023, Plaintiff filed a joint stipulation
between itself and Defendant indicating that the parties had reached a
settlement in the case for $8,072.94 and requested the case dismissed without
prejudice.
On September 28, 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 10, 2024, Plaintiff filed
the instant Motion to Set Aside the Dismissal and Enter Judgment.
No opposition has been filed.
MOVING PARTY
POSITION
Plaintiff prays for the Court to set aside
the dismissal entered on September 28, 2023, and enter judgment against
Defendant in the sum of $8,290.94 for the following: principal
amount of $8,072.94 less $145.00 in payments made by Defendant, plus court cost
totaling $363.00. Plaintiff argues that Defendant failed to make the monthly payments
under the stipulation, thus putting him in default. 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. (09-18-23
Stipulation.) Before dismissing the action, the parties signed the Stipulation
and submitted it to the Court. (Id.
at p. 5.) On September 28, 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.” (09-28-23 Order for Dismissal.)
Therefore, the Court finds that the Stipulation complies with the requirements
under CCP § 664.6, and it has retained jurisdiction to enter judgment pursuant
to the parties’ Stipulation in this action.
B.
Entry of Judgment
The Settlement
Agreement, filed on September 18, 2023, provides that the parties agreed to
settle the matter for a principal sum of $8,072.94, with Defendant making an
initial payment of $145.00 on September 15, 2023. (Laura M. D’Anna Decl. ¶ 7,
Exh. 1.) Defendant would make 22 monthly payments of $145.00 beginning on October
15, 2023, with subsequent recurring payments due on or before the 31st of each
month, until paid in full. (Id.) Plaintiff provides the Court with the
declaration of its counsel who avers that to date Defendant has paid only $145.00.
(Id. ¶ 9,) However since
September 14, 2023, Defendant has failed to make any monthly payments under the
stipulation, thus putting Defendant into default. (Id.)
Accordingly, due to Defendant’s failure to comply with the Settlement
Agreement, Plaintiff requested that a judgment of $8,290.94 be entered against
Defendant. (Id. ¶ 11.)
The Court
finds the Settlement Agreement valid and enforceable under CCP § 664.6. Here,
Plaintiff provides evidence that Defendant made no payments or cured the
default. (Id. ¶ 9.) Therefore,
since a valid and signed settlement agreement between the parties was 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 September 28, 2023, is vacated.
Judgment is entered for Plaintiff and against Defendant in the amount of $8,290.94
for the following: principal amount of $8,072.94 less $145.00 in payments made
by Defendant, plus court cost totaling $363.00.
III. Conclusion
Plaintiff Pagaya AI Debt Selection Grantor Trust
2021 1’s Motion to Set Aside the
09/28/2023 Dismissal and Enter Judgment is GRANTED.
Judgment is entered for Plaintiff and against Defendant in
the TOTAL amount of $8,290.94.
Moving party is ordered to give
notice.