Judge: Michael P. Linfield, Case: 21STCV46412, Date: 2023-02-03 Tentative Ruling

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Case Number: 21STCV46412    Hearing Date: February 3, 2023    Dept: 34

SUBJECT:         Motion for Determination of Good Faith Settlement

Moving Party:  Cross-Defendants Gregory Walston and Walston & Associates

Resp. Party:    None

Cross-Defendant Walston et al.’s Motion for Determination of Good Faith Settlement is GRANTED.

BACKGROUND:

On April 23, 2021, Plaintiffs Noah Meiner, Lennifer Hilliard, and Sandra Wilson (“Meiner et al.”) filed their Complaint against Defendants Robin Amelia Sheehan, Brian Morgan Heit, Matthew Jacob Feaver, and Heit Law Group (“Sheehan et al.”). The underlying issue regards the alleged malpractice (and related claims) of Sheehan et al. in Meiner et al.’s prior lawsuit on a specific e-spam law.

On January 25, 2022, Sheehan et al. filed: (1) Answer to Meiner et al.’s Complaint; and (2) Cross-Complaint against Cross-Defendants Gregory Walston and Walston & Associates (“Walston et al.”).

On January 26, 2022, Meiner et al. amended their Complaint to substitute Doe 1 with ABG Law PC and Doe 2 with Adept Legal Counsel PC.

On April 21, 2022, Walston et al. filed: (1) Answer to Sheehan et al.’s Cross-Complaint; and (2) Cross-Complaint against General Star Insurance Company (actual name General Star Indemnity Company), Robin Amelia Sheehan, Jay Fink, Noah Meiner, Lennifer Hilliard, and Sandra Wilson. (On August 3, 2022, the Court sustained Meiner et al.’s Demurrer to the first amended version of this Cross-Complaint.)

On July 22, 2022, Cross-Defendant/Cross-Complainant General Star Indemnity Company (“General Star”) filed Cross-Complaint against Meiner et al., Sheehan et al., and Walston et al.

On September 21, 2022, Meiner et al. filed their Answer to General Star’s Cross-Complaint.

On September 28, 2022, the Court granted General Star’s Motion for Order to Sever General Star’s Cross-Complaint and Walston et al.’s First Amended Cross-Complaint.

On November 17, 2022, Walston et al. filed their Answer to General Star’s Cross-Complaint.

On January 3, 2023, Walston et al. filed their Motion for Determination of Good Faith Settlement. Walston et al. concurrently filed: (1) Declaration of Gregory S. Walston; (2) Declaration of Jacob Harker; and (3) Proof of Service.

Walston et al.’s Motion for Determination of Good Faith Settlement is unopposed.

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 

Cross-Defendants Walston et al. move the Court to accept a proposed good faith settlement pursuant between Walston et al. (i.e., Gregory Walston, Walston & Associates, and Walston & Sheehan) and Plaintiffs Meiner et al. (i.e., Noah Meiner, Lennifer Hilliard, and Sandra Wilson). (Motion, p. 5:14–17.)

The terms of this settlement are as follows:

(1)       Gregory Walston will pay $18,424.00 to Noah Meiner, $11,960.00 to Lennifer Hilliard, and $9,616.00 to Sandra Wilson, for a grand total of $40,000.00.

(2)       The Settling Parties mutually release any and all claims, known and unknown, they may have against one another.

(Motion, p. 5:19–23.)

The settlement is conditioned on the Court granting the Motion for Good Faith Settlement. (Id.)

Gregory Walston discusses the reasons why he believes that this settlement is entered into in good faith. These include Gregory Walston’s declaring that he had not responsibility for the underlying case at all, that his firm has less than $40,000.00 in operating funds, that he has no relevant insurance policy, and that he is paying this amount out of personal funds despite having various costs. (Decl. Walston, ¶¶ 5, 7–10.)

Jacob Harker, who is Counsel for Meiner et al., also discusses the reasons why he believes that this settlement is entered into in good faith. These include Counsel Harker’s declaration that Meiner et al. reached this settlement with Walston et al. on December 30, 2022, that the settlement was carefully negotiated at arms-length through counsel, that the settlement was made in good faith, that the settlement is not the product of collusion or other improper purpose, and that it is fair and in the best interests of the parties. (Decl. Harker, ¶¶ 13–14.)

The Motion for Determination of Good Faith Settlement is unopposed. The Court does not have any evidence that would indicate the settlement was not entered into in good faith. Rather, all the evidence indicates that the settlement was entered into in good faith.

The Court finds that the settlement was entered into good faith. (Code Civ. Proc, § 877.6, (b).) The Court GRANTS Cross-Defendant Walston et al.’s Motion for Determination of Good Faith Settlement.

III.     Conclusion 

Cross-Defendant Walston et al.’s Motion for Determination of Good Faith Settlement is GRANTED.