Judge: Michael P. Linfield, Case: 21STCV40546, Date: 2023-12-07 Tentative Ruling

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Case Number: 21STCV40546    Hearing Date: December 22, 2023    Dept: 34

SUBJECT:        Motion for Determination of Good Faith Settlement

Moving Party: Defendants Sound (ABC) LLC and Armanino LLP

Resp. Party:    None

The Motion for Determination of Good Faith Settlement is GRANTED.

BACKGROUND:

On November 3, 2021, Plaintiff Creative Resonance, Inc. filed its Complaint against Defendants Sound Nutrition, Inc., Sound (ABC), LLC, Don Dillon, and Wilson Sonsini Goodrich & Rosati on causes of action arising from the Parties’ business relationship and transactions.

On November 29, 2021, Plaintiff filed its First Amended Complaint (FAC). The FAC added new allegations, parties, and causes of action.

On May 27, 2022, Plaintiff filed its Second Amended Complaint (SAC).

On January 13, 2023, Plaintiff filed its Third Amended Complaint (TAC).

On February 15, 2023, Defendant Sound (ABC), LLC filed its Answer to the TAC.

On February 15, 2023, Defendants Sound Nutrition, Inc. and Don Dillon filed their Answer to the TAC.

On August 25, 2023, Plaintiff amended its pleading by substituting Doe 1 with Armanino LLP (in the eighth and eleventh causes of action) and Doe 2 with Treadstone Capital Trust (in the eighth, ninth, and eleventh causes of action).

On October 4, 2023, by request of Plaintiff and after the Court made a determination of good faith settlement, the Clerk’s Office dismissed with prejudice Defendants Wilson Sonsini Goodrich & Rosati, Robert Kornegay, and Zachary Myers.

On October 9, 2023, Defendants/Cross-Complainants Treadstone Capital Trust and Don Dillon filed their Cross-Complaint against Plaintiff/Cross-Defendant Creative Resonance, Inc.

On November 13, 2023, Plaintiff/Cross-Defendant filed its Answer to the Cross-Complaint.

On November 30, 2023, Defendants Sound (ABC), LLC and Armanino LLP filed their Motion for Determination of Good Faith Settlement.

On December 8, 2023, Defendant/Cross-Complainant Treadstone Capital Trust filed its Answer to the TAC.

On December 15, 2023, Defendants Sound (ABC), LLC and Armanino LLP filed their Notice of Non-Opposition to Defendants’ Motion for Determination of Good Faith Settlement.

No opposition or other response has been filed to the Motion for Determination of Good Faith Settlement.

ANALYSIS:

I.          Legal Standard

“Any party to an action in which it is alleged that two or more parties are joint tortfeasors or co-obligors on a contract debt shall be entitled to a hearing on the issue of the good faith of a settlement entered into by the plaintiff or other claimant and one or more alleged tortfeasors or co-obligors, upon giving notice in the manner provided in subdivision (b) of Section 1005.” (Code Civ. Proc., § 877.6, subd. (a)(1).)

“In the alternative, a settling party may give notice of settlement to all parties and to the court, together with an application for determination of good faith settlement and a proposed order.” (Code Civ. Proc., § 877.6, subd. (a)(2).)

“The issue of the good faith of a settlement may be determined by the court on the basis of affidavits served with the notice of hearing, and any counteraffidavits filed in response, or the court may, in its discretion, receive other evidence at the hearing.” (Code Civ. Proc., § 877.6, subd. (b).)

II.       Discussion

Defendants Sound (ABC), LLC and Armanino LLP move the Court to issue an order determining that the settlement between Plaintiff and Defendants Sound (ABC), LLC and Armanino LLP was reached in good faith and thus these defendants are protected from any present or future claims against them pursuant to Code of Civil Procedure section 877.6. (Motion for Determination of Good Faith Settlement, p. 18:13–17.)

        Among other things, Defense Counsel declares: (1) Plaintiff and Defendants Sound (ABC), LLC and Armanino LLP have come to a settlement; (2) Plaintiff will dismiss all claims against these defendants in exchange for $120,000.00; (3) these parties will exchange mutual releases and agree to refrain from causing any disparagement to each other relating to the TAC, the settlement contemplated, or any other aspect of the litigation in this action; (4) these parties agree to maintain confidentiality regarding the terms of their settlement agreement; (5) the settlement agreement is not an admission of liability; (6) the settling parties will bear their respective costs and expenses, including attorneys’ fees, that were incurred in this action; and (7) these parties engaged in multiple attempts at negotiation, including mediation, which ultimately led to this settlement agreement. (Motion for Determination of Good Faith Settlement, Decl. Raanan, ¶¶ 8–9.)

        No Defendant has filed an opposition or other response.

        The evidence presented to the Court indicates that the settlement was entered in good faith.

The Court finds that the settlement was entered into good faith. (Code Civ. Proc, § 877.6, subd. (b).)

III.     Conclusion

The Motion for Determination of Good Faith Settlement is GRANTED.