Judge: Melvin D. Sandvig, Case: 22CHCV01159, Date: 2025-05-13 Tentative Ruling

Counsel wishing to submit on a tentative ruling may inform the clerk or courtroom assisant in North Valley Department F47, 9425 Penfield Ave., Chatsworth, CA 91311, at (818) 407-2247.  Please be aware that unless all parties submit, the matter will still be called for hearing and may be argued by any appearing/non-submitting parties. If the matter is submitted on the court's tentative ruling by all parties, counsel for moving party shall give notice of ruling. This may be done by incorporating verbatim the court's tentative ruling. The tentative ruling may be extracted verbatim by copying and specially pasting, as unformatted text, from the Los Angeles Superior Court’s website, http://www.lasuperiorcourt.org. All hearings on law and motion and other calendar matters are generally NOT transcribed by a court reporter unless one is provided by the party(ies).

Case Number: 22CHCV01159    Hearing Date: May 13, 2025    Dept: F47

Dept. F47

Date: 4/13/25

Case #22CHCV01159

HEARING ON DEFENDANT’S ELECTION TO MAKE PAYMENTS

(Government Code 984)

Defendant’s Election document filed 4/15/25.  Court’s Notice of Hearing filed 4/16/25.

On 4/1/25, the Court entered a Judgment on Special Verdict in favor of Plaintiff Luis Alonso Rodriguez and against Defendants State of California by and through the Department of Insurance and Cynthia J. Ware in the amount of $32,868,692.93 (the Judgment).

Defendant indicates that it has no insurance, liability insurance, commercial insurance, self-insurance, joint powers agreement, Local Agency Self Insurance Authority, or any other similar arrangement for the Judgment which exceeds the threshold amount in Government Code 984(d).  See Government Code 984(a).  In such circumstances, pursuant to Government Code 984(d), a government entity may elect to make periodic payments if a judgment against it is greater than the statutory threshold.  As of 1/1/25, the statutory threshold is $2,984,198.00.  See Government Code 984(d).  After any amounts reimbursed pursuant to Government Code 985, the judgment-debtor must pay 50% of the remainder of the judgment immediately, and the other 50% of the remainder shall be paid over a period of time to be determined by the court, not to exceed 10 years or the length of the judgment-creditor’s remaining life expectancy at the time the judgment is entered, whichever is less.  Id.

On 4/15/25, Defendant State of California, by and through the Department of Insurance (Defendant) filed and served its Election to Make Periodic Payments Under Government Code 984 and on 4/16/24, the Court filed and served a Notice of Hearing on Defendant’s Election to Make Payments setting the hearing for 5/13/25.

A judgment for periodic payment under Government Code 984 is subject to “[i]nterest at the same rate as one-year United States Treasury bills as of January 1, each year shall accrue to the unpaid balance of the judgment, and on each January 1 thereafter throughout the duration of the installment payments the interest shall be adjusted until the judgment is fully satisfied.”  Government Code 984(e)(2). 

Based on the fact that trial testimony of Plaintiff’s medical experts indicated that Plaintiff has a life expectancy that exceeds 25 years, Defendant requests 10 yearly payments plus statutory interest be ordered.    

On 5/2/25, Plaintiff filed an Objection and Request to Strike Defendant’s Election to Make Periodic Payments Under Government Code 984.  First, Plaintiff contends that Defendant’s election is procedurally defective because it did not comply with CRC 3.1804.

CRC 3.1804 provides:

(a) Notice of election or hearing

A public entity electing to pay a judgment against it by periodic payments under Government Code section 984 must serve and file a notice of election stipulating to the terms of such payments, or a notice of hearing on such terms, by the earlier of:

(1) 30 days after the clerk sends, or a party serves, notice of entry of judgment; or

(2) 60 days after entry of judgment.

(b) Time for hearing

Notwithstanding any contrary local rule or practice, a hearing under (a) must be held within 30 days after service of the notice. The court must make an order for periodic payments at the hearing.

Plaintiff contends that the filing of “Defendant’s Election to Make Periodic Payments Under Government Code Section 984” is insufficient because it was not a notice of hearing on the terms of such election and, therefore, the election should be stricken.  The Court finds Plaintiff’s argument to be without merit.    

Defendant timely provided notice of its election to make periodic payments under Government Code 984 and the Court then sent timely notice of a hearing on such election.  California Rules of Court have the force of statute to the extent they do conflict with legislative enactments and constitutional provisions.  See Silverbrand (2009) 46 C4th 106, 125; Marshall (2020) 54 CA5th 275, fn.3.   However, failure to comply with the rules of court does not raise a jurisdictional issue.  See Knowles (1963) 60 C2d 620, 628; People ex rel. San Francisco Bay Conservation etc. Com. v. Smith (1994) 26 CA4th 113, 126.  Here, Plaintiff received timely notice of the hearing on Defendant’s election and has not shown that he has suffered any prejudice by the claimed procedural error.     

Plaintiff also claims that Defendant’s election is substantively defective because Defendant proposes 10 annual payments without providing a schedule or financial justification.  The Court finds that the instant hearing is the means to determine whether Defendant’s proposed payment plan is justified. 

Based on the fact that Defendant has no insurance for the Judgment which exceeds the statutory threshold set forth in Government Code 984(d), the Court finds that Defendant’s election to be justified.

As such, Defendant is ordered to immediately pay 50% of the remaining Judgment, after any amounts reimbursed pursuant to Government Code 985.  The other 50% of the remainder of the Judgment shall be paid by periodic payments in 10 yearly payments at an interest rate as established by Government Code 984(e)(2).