Judge: Michael P. Linfield, Case: 21STCV03966, Date: 2023-03-06 Tentative Ruling

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Case Number: 21STCV03966    Hearing Date: March 6, 2023    Dept: 34

SUBJECT:         Motion for an Order Enforcing Terms of Settlement Agreement and Request for Costs and Attorney’s Fees

Moving Party:  Plaintiff Mario Enrique Batzibal Tzoc

Resp. Party:    None

The Motion is GRANTED.

Judgment is entered in favor of Plaintiff and against Defendant in the amount of $16,000.00. Defendant is ordered to pay $7,000.00 to Plaintiff’s counsel within 15 days of the issuance of this Order. Defendant is ordered to pay $1,000.00 every month, due by the 15th of that month, until the remaining $9,000.00 is paid, with the first month’s payment due by March 15, 2023, and the last payment due by November 15, 2023.

Costs and attorney’s fees are awarded to Plaintiff and against Defendant in the amount of $1,730.00.

BACKGROUND:

        On February 1, 2021, Plaintiff Mario Enrique Batzibal Tzoc filed his Complaint against Defendant JHOS Logistics and Transportation Inc. on causes of action regarding Plaintiff’s employment with Defendant.

        On May 31, 2022, by the Parties’ request due to their settlement, the Court dismissed the Complaint with prejudice. The Court retained jurisdiction to make orders to enforce any and all terms of settlement, including judgment, pursuant to Code of Civil Procedure section 664.6.

        On February 7, 2023, Plaintiff filed his Notice of Motion and Motion for an Order Enforcing Terms of Settlement Agreement and Request for Costs and Attorney’s Fees.

        No opposition or other response has been filed.

ANALYSIS:

I.           Legal Standard

“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).) 

“Section 664.6 was enacted to provide a summary procedure for specifically enforcing a settlement contract without the need for a new lawsuit.” (Weddington Prod., Inc. v. Flick (1998) 60 Cal.App.4th 793, 809.) In deciding motions made under Section 664.6, judges “must determine whether the parties entered into a valid and binding settlement.” (Kohn v. Jaymar-Ruby (1994) 23 Cal.App.4th 1530, 1533.)  

II.        Discussion

A.      The Settlement Agreement

Plaintiff provides the Court with the Confidential Settlement Agreement and Release of All Claims (“Settlement Agreement”). (Motion, Ex. A.) For the purposes of the instant Motion, the key terms in the Settlement Agreement are:

(1)       Defendant will pay Plaintiff $20,000.00, as follows:

(a)        A $3,000.00 payment on or prior to June 15, 2022;

(b)       A $1,000.00 payment every month subsequent on the 15th of those months until the entire Settlement Amount has been paid.

(c)        The Settlement Amount shall be satisfied in full no later than November 15, 2023, but may be satisfied earlier at the election of Defendant.

(2)       Plaintiff will completely release and dispose of all lawsuits, claims, demands, and causes of actions arising out of, connected with, or incidental to the employment relationship between the Parties, as well as all expenses and/or claims related to the assertion of these claims, including but not limited to attorneys’, mediator’s and experts’ fees and/or costs, and any other claims or potential claims, causes of action, or demands pertaining to or arising out of the case and related matters.

(3)       The Superior Court of California, County of Los Angeles retains jurisdiction for the purpose of enforcing the terms of the Settlement Agreement pursuant to Code of Civil Procedure section 664.6.

(4)       The Settlement Agreement shall be admissible in any proceeding to enforce the terms thereof, if necessary, and the prevailing party in any such proceeding shall be entitled to recover costs, including reasonable attorneys’ fees, incurred thereby.

(Motion, Ex. A, ¶¶ II.A.1.a.–c., II.A.4, II.A.6, III.I.)

B.      Discussion

1.       The Parties’ Arguments

Plaintiff moves the Court to order Defendant to make a final payment in the amount of $16,000.00 within 30 days and pay $2,830.00 in costs and attorney’s fees incurred. (Motion, p. 5:10–12.) Plaintiff’s Counsel declares that Defendant has only made the initial $3,000.00 payment and one $1,000.00 payment, and that Plaintiff’s Counsel has contacted Defendant’s Counsel for an update but not received a response. (Motion, Decl. Torossian, ¶¶ 4–6.)

No opposition or other response have been filed.

2.       Jurisdiction

Pursuant to the Court’s Order May 31, 2022, Code of Civil Procedure section 664.6, and the terms of the Settlement Agreement, the Court finds that it has jurisdiction over this matter. Based on the evidence submitted, the Court further finds that it would be appropriate to enter judgment in this matter pursuant to Code of Civil Procedure section 664.6.

3.       Judgment Amount

The Court declines to proceed with Plaintiff’s request that the Court accelerate the payment schedule and order Defendant to make a final payment of $16,000.00 within 30 days. The hearing on the Motion is March 6, 2023, and the contractual date of the last payment is November 15, 2023. Plaintiff does not point to an acceleration clause in the Settlement Agreement, and the Court does not see one. At most, Plaintiff argues that acceleration of the entire payment amount is appropriate because Defendant is in breach of the Settlement Agreement. (Motion, p. 3:22–26.) The Court disagrees with that argument. At most, Defendant is in breach of the missed payments, not of all payments, and the Settlement Agreement does not provide for acceleration of later payments based on a breach regarding earlier payments.

The Court GRANTS the Motion and enters judgment in favor of Plaintiff and against Defendant in the amount of $16,000.00. Defendant is ordered to pay $7,000.00 (for the missed payments from August 15, 2022 to February 15, 2023) within 30 days of the issuance of this Order. Defendant is ordered to pay $1,000.00 every month, due by the 15th of that month, until the remaining $9,000.00 is paid, with the first month’s payment due by March 15, 2023, and the last payment due by November 15, 2023.

4.       Attorney’s Fees

Pursuant to the Settlement Agreement, attorney’s fees are appropriate here. While one part of the Settlement Agreement appears to preclude attorney’s fees, that section regards the claims that existed at the time the Settlement Agreement was entered into. (Motion, Ex. A, ¶ II.A.6.) The applicable section regarding attorney’s fees and entry of judgment pursuant to Code of Civil Procedure section 664.6 clearly allows recovery of costs, including reasonable attorney’s fees. (Id. at ¶ III.I.) The Court finds that an award of costs, including attorney’s fees, is appropriate here. (Code Civ. Proc., §§ 1032, subd. (b), 1033.5, subd. (a)(10)(B).)

Plaintiff’s Counsel declares: (1) that they spent three hours researching and preparing this Motion; (2) that they anticipate spending another two hours replying to an opposition and attending the hearing on this Motion, including travel; (3) that costs for the Motion are $80.00; and (4) that their hourly billing rate for this case is $550.00 per hour. (Motion, Decl. Torossian, ¶ 10.)

The Court finds that the hourly rate and costs are reasonable but that the estimated number of hours spent on this Motion is too high, because no opposition has been filed, and thus no reply was filed. The Court awards the full costs and three hours of attorney’s fees at the hourly rate of $550.00 for a total of $1,730.00.

III.     Conclusion

The Motion is GRANTED.

Judgment is entered in favor of Plaintiff and against Defendant in the amount of $16,000.00. Defendant is ordered to pay $7,000.00 to Plaintiff’s counsel within 15 days of the issuance of this Order. Defendant is ordered to pay $1,000.00 every month, due by the 15th of that month, until the remaining $9,000.00 is paid, with the first month’s payment due by March 15, 2023, and the last payment due by November 15, 2023.

Costs and attorney’s fees are awarded to Plaintiff and against Defendant in the amount of $1,730.00.