Judge: Mark E. Windham, Case: 22STLC00458, Date: 2023-02-01 Tentative Ruling

Case Number: 22STLC00458    Hearing Date: February 1, 2023    Dept: 26

Pegasus Investments Real Estate Advisory, Inc. v. ADP TotalSource, Inc., et al.

MOTION TO TAX COSTS

(CRC Rule 3.1700)

TENTATIVE RULING:

COUNSEL OF RECORD FOR BOTH PARTIES ARE ORDERED TO APPEAR AT THE HEARING ON FEBRUARY 1, 2023 AT 10:00 AM TO DISCUSS THE CASE STATUS.

Defendant ADP TotalSource, Inc.’s Motion to Tax Costs is CONTINUED TO FEBRUARY 6, 2023 AT 10:00 AM IN DEPARTMENT 26 IN THE SPRING STREET COURTHOUSE.

ANALYSIS:

On January 24, 2022, Plaintiff Pegasus Investments Real Estate Advisory, Inc. (“Plaintiff”) filed this action against Defendant ADP TotalSource, Inc. (“Defendant”). The First Amended Complaint was filed on July 22, 2022 and purported to include an entity named “Pegasus Asset Management, Inc.” as a plaintiff. Defendant filed the Answer to the First Amended Complaint on August 22, 2022.

On September 26, 2022, Defendant filed two Statutory Offers to Compromise Pursuant to Code of Civil Procedure section 998. One Statutory Offer pertained to a compromise reached with Plaintiff, but the filing of which was rejected. The other Statutory Offer pertained to a compromise reached “Pegasus Asset Management, Inc.” which was still not a party to this action. The Statutory Offers to Compromise were then re-filed on October 6, 2022. At that time, the Offer pertaining to “Pegasus Asset Management, Inc.” was rejected.

Plaintiff filed a Memorandum of Costs on September 27, 2022. Defendant filed the instant Motion to Tax Costs on October 14, 2022. Plaintiff filed its opposition on October 20, 2022.

Discussion

First, the Court addresses the fact that Plaintiff is prematurely seeking an award of costs and attorney’s fees before any judgment has been entered in this action. The Statutory Offer filed on October 6, 2022 that pertained to a settlement with “Pegasus Asset Management, Inc.” was rejected because it is not a party to this action. It appears that Plaintiff sought to add “Pegasus Asset Management, Inc.” to this action via the First Amended Complaint. However, as no first appearance fee was paid with respect to “Pegasus Asset Management, Inc.” it remains a non-party.

The other Statutory Offer filed on October 6, 2022 pertained to a settlement between the parties in the amount of $10,500.00 exclusive of any reasonable attorneys’ fees and costs. However, in the Motion to Tax Costs and opposition thereto, the parties contend that this action involves a total settlement amount of $20,400.00. (Motion, p. 3:3-4; Opp., p. 10:14-20.) As noted above, there is no Statutory Offer in that amount before the Court with respect to the parties to this action.

Accordingly, the parties are ordered to appear at the hearing on February 1, 2023 through counsel of record to inform the Court regarding the status of the settlement between the correct parties in this action. The hearing on the Motion to Tax Costs is continued to February 6, 2023 to allow the parties to make any corrections necessary with respect to the settlement and the parties involved.

Conclusion

COUNSEL OF RECORD FOR BOTH PARTIES ARE ORDERED TO APPEAR AT THE HEARING ON FEBRUARY 1, 2023 AT 10:00 AM TO DISCUSS THE CASE STATUS.

Defendant ADP TotalSource, Inc.’s Motion to Tax Costs is CONTINUED TO FEBRUARY 6, 2023 AT 10:00 AM IN DEPARTMENT 26 IN THE SPRING STREET COURTHOUSE.

Court clerk to give notice.