Judge: Mark E. Windham, Case: 20STLC07096, Date: 2023-05-25 Tentative Ruling

Case Number: 20STLC07096    Hearing Date: May 25, 2023    Dept: 26

State Farm v. Arellano, et al.

ENTER JUDGMENT PURSUANT TO STIPULATION

(CCP § 664.6)

TENTATIVE RULING:

Plaintiff State Farm Mutual Automobile Insurance Company’s Motion to Vacate Dismissal, Enforce Settlement Agreement and Enter Judgment is GRANTED IN THE AMOUNT OF $11,479.05 PRINCIPAL, $936.32 INTEREST, $526.27 COSTS, AND $866.41 ATTORNEY FEES.

ANALYSIS:

Plaintiff State Farm Mutual Automobile Insurance Company (“Plaintiff”) filed the instant action for automobile subrogation against Defendant Lydia Arellano (“Defendant”) on August 20, 2020. Defendant filed an answer on September 24, 2020. On May 24, 2021, Plaintiff filed a copy of its 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 May 27, 2021. (Order for Dismissal, 05/27/21.)

Plaintiff filed the instant motion to vacate dismissal, enforce settlement and enter judgment on February 28, 2023. No opposition has been filed to date.

Discussion

The instant motion 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, subd. (a).) 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.) The current statute provides that “parties” includes “an attorney who represents the party” and an insurer’s agent. (Code Civ. Proc., § 664.6, subd. (b).) The settlement must include 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 and their attorneys. (Motion, Mahfouz II Decl., Exh. A, p. 3.)

Furthermore, the request for retention of jurisdiction must be made in writing, by the parties, before the action is dismissed for the Court’s retention of jurisdiction to conform to the statutory language. (Wackeen v. Malis (2002) 97 Cal.App.4th 429, 433 [“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.”].) The parties’ request for retention of jurisdiction complies with these requirements because it was made in writing to the Court before the action was dismissed. (Motion, Mahfouz II Decl., Exh. A, ¶8.) Therefore, the Court finds that the parties’ settlement agreement is enforceable, and the request for the Court’s retention of jurisdiction is proper, under Code of Civil Procedure section 664.6.

The settlement agreement provides that Defendant would pay Plaintiff $11,342.74 by way of $2,901.43 from insurance, followed by monthly payments starting on February 15, 2021. (Id. at Exh. A, ¶4.) The settlement agreement also provides that if Defendant defaults, judgment in the demand of the Complaint ($15,880.48), plus interest, costs and attorney fees, less monies paid, may be entered in Plaintiff’s favor. (Id. at Exh. A, ¶7.) Defendant made total payments in the amount of $4,401.43 and thereafter defaulted. (Id. at ¶14.) Plaintiff seeks an order entering judgment against Defendant based on the settlement amount of $11,479.05 ($15,880.48 - $4,401.43), $936.32 interest, $526.27 costs, and $866.41 attorney fees. (Id. at ¶12.)

Conclusion

Therefore, Plaintiff State Farm Mutual Automobile Insurance Company’s Motion to Vacate Dismissal, Enforce Settlement Agreement and Enter Judgment is GRANTED IN THE AMOUNT OF $11,479.05 PRINCIPAL, $936.32 INTEREST, $526.27 COSTS, AND $866.41 ATTORNEY FEES.

Moving party to give notice.