Judge Mark E. Windham, Case 18STLC02420 2022-07-26 Tentative Ruling

If you desire to submit on the tentative ruling, you may do so by e-mailing Dept. 26 at the Spring Street Courthouse until the morning of the motion hearing.

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Plaintiff State Farm Mutual Automobile Insurance Company’s Motion to Vacate Dismissal and Enter Judgment is CONTINUED TO OCTOBER 11, 2022 AT 10:00 AM IN DEPARTMENT 26 IN THE SPRING STREET COURTHOUSE. BY SEPTEMBER 25, 2022, PLAINTIFF IS TO FILE AND SERVE A SUPPLEMENTAL DECLARATION REGARDING THE AMOUNTS PAID TOWARDS THE SETTLEMENT AGREEMENT. FAILURE TO COMPLY WITH THE COURT’S ORDER MAY RESULT IN THE MOTION BEING DENIED.

Plaintiff State Farm Mutual Automobile Insurance Company (“Plaintiff”) filed the instant action for automobile subrogation against Defendant Dharanidareddy Goutireddy (“Defendant”) on February 9, 2018.

On March 6, 2020, Plaintiff filed a copy of the settlement agreement with Defendant with a request for dismissal and retention of jurisdiction under Code of Civil Procedure section 664.4. The Court granted the request for dismissal with retention of jurisdiction on the same date. (Order for Settlement and Dismissal, filed 03/06/20.)

Plaintiff filed the instant Motion to Vacate Dismissal, Enforce Settlement and Enter Judgment on June 9, 2022. No opposition has been filed to date.

The Motion to Enforce Settlement is brought under Code of Civil Procedure, section 664.6, which states in relevant part:

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.

(Code Civ. Proc., § 664.6.) Prior to January 1, 2021, “parties” under section 664.6 meant the litigants themselves, not their attorneys. (Levy v. Superior Court (1995) 10 Cal.4th 578, 586 (holding “we conclude that the term ‘parties’ as used in section 664.6 means the litigants themselves, and does not include their attorneys of record.”).) Additionally, the settlement must have included the signatures of the parties seeking to enforce the agreement, and against whom enforcement is sought. (J.B.B. Investment Partners, Ltd. v. Fair (2014) 232 Cal.App.4th 974, 985.)

The settlement agreement here complies with the statutory requirements set forth above because it was signed by both parties. (Motion, Reese Decl., Exh. A, p. 3.) Furthermore, the request for retention of jurisdiction was made in writing, by the parties, before the action was dismissed. (Id. at Exh. A, ¶3.) These requirements must also be met for the retention of jurisdiction to conform to the statutory language. (Wackeen v. Malis (2002) 97 Cal.App.4th 429, 433 [“requests for retention of jurisdiction must be made prior to a dismissal of the suit. Moreover, like the settlement agreement itself, the request must be made orally before the court or in a signed writing, and it must be made by the parties, not by their attorneys, spouses or other such agents. If, after a suit has been dismissed, a party brings a section 664.6 motion for a judgment on a settlement agreement but cannot present to the court a request for retention of jurisdiction that meets all of these requirements, then enforcement of the agreement must be left to a separate lawsuit.”].) Therefore, the Court finds that the parties’ settlement agreement is enforceable, and the request for retention of jurisdiction is proper, under Code of Civil Procedure section 664.6.

The settlement agreement provides that Defendant would pay Plaintiff $6,608.93 by way of $2,458.93 through insurance followed by monthly installments starting March 1, 2020. (Motion, Reese Decl., Exh. A, ¶2.) The settlement agreement also provides that if Defendant defaults, judgment in the amount of the Complaint ($13,107.96), plus costs, may be entered in Plaintiff’s favor, less any amounts paid. (Id. at Exh. A, ¶3.)

It is not clear the amount paid towards the settlement as of this date. Defendant’s insurer apparently paid $2,458.93, but the supporting declaration does not set forth the amount paid by Defendant thereafter. (Id. at ¶4.) It simply states that Defendant made monthly payments until defaulting. (Ibid.) Even the letter of default sent to Defendant unhelpfully provides no information about the balance remaining under the settlement. (Id. at Exh. C.) Plaintiff must clarify the amount paid towards the settlement in order for the Court to determine Defendant’s obligation regarding the unpaid amount.

Plaintiff State Farm Mutual Automobile Insurance Company’s Motion to Enforce Settlement Agreement is CONTINUED TO OCTOBER 11, 2022 AT 10:00 AM IN DEPARTMENT 26 IN THE SPRING STREET COURTHOUSE. BY SEPTEMBER 25, 2022, PLAINTIFF IS TO FILE AND SERVE A SUPPLEMENTAL DECLARATION REGARDING THE AMOUNTS PAID TOWARDS THE SETTLEMENT AGREEMENT. FAILURE TO COMPLY WITH THE COURT’S ORDER MAY RESULT IN THE MOTION BEING DENIED.