Judge: Peter A. Hernandez, Case: 23STCV02215, Date: 2024-09-20 Tentative Ruling

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Case Number: 23STCV02215    Hearing Date: September 20, 2024    Dept: 34

Ourian Investment Corp. v. Hedley et al.  (23STCV02215)

Plaintiff Ourian Investment Corp.’s Motion to Enforce Settlement is GRANTED.

BACKGROUND      

Plaintiff Ourian Investment Corp. (“Plaintiff”) lawsuit arose out of the failure of Defendant Todd Hedley (“Hedley”) to repay a total of $150,000.00 in funds lent to Hedley by Plaintiff pursuant to an April 22, 2021 loan agreement whereby Plaintiff lent Hedley $50,000.00 which Hedley was required to repay to Plaintiff in full in 90 days and a September 9, 2021 loan agreement whereby Plaintiff lent Hedley $100,000.00 which Hedley was required to repay to Plaintiff in full in 90 days. As indicated in the concurrently filed Declaration of Simon Ourian, President of Plaintiff, the full combined amount of $150,000 has never been repaid..

On May 23, 2023, Plaintiff filed a complaint, asserting a causes of action against Headly, Kelly Swartz (“Swartz”), and Does 1-10 for:

1.               Breach of Contract

2.               Breach of Contract

3.               Fraudulent Transfer pursuant to Civil Code § 3439.04(a)(1)

4.               Fraudulent Transfer pursuant to Civil Code § 3439.04(a)(2)

5.               Fraudulent Transfer pursuant to Civil Code § 3439.05

6.               Fraudulent Transfer pursuant to Common Law

A Final Status Conference is set for October 1, 2024 and Jury Trial is set for October 14, 2024.

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).)

DISCUSSION

Plaintiff moves the court for an order, pursuant to Code of Civil Procedure § 664.6, to enter judgment against Hedley in accordance with the terms of the parties’ settlement agreement. Plaintiff also seeks 4,187.00 in attorneys’ fees and costs.

On July 9, 2024, Plaintiff and Hedley entered into a Settlement and General Release Agreement (“Settlement Agreement”) whereby Plaintiff and Hedley agreed as a matter of compromise and to avoid further expenses and the uncertainties of litigation to settle, compromise and release any and all claims between them relating to Hedley’s failure to pay the sums due under April 21, 2021 and September 9, 2021 loans. (Declaration of Jacob Zadeh, ¶ 4.)

Pursuant to the terms of the Settlement Agreement, Hedley agreed to pay Plaintiff the sum of $194,454.14, which includes the principal amount due pursuant to the loans, plus prejudgment interest of $20,383.57 and attorneys’ fees of $24,068.57. (Id., ¶ 5.) The Settlement Agreement also requires that Hedley was to pay the total amount in installments, with a minimum payment of $10,000.00 to be made by Hedley to Plaintiff on the 30th day of each month until the total amount dues is fully paid, however, the first payment was to be made upon execution of the Settlement Agreement. (Id.) This first payment was not made (Id., ¶¶ 7-10.) Plaintiff has advised Hedley he is in breach of the Settlement Agreement. (Id., ¶ 15.).

The Settlement Agreement entitles Plaintiff to recover its actual attorney’s fees and costs incurred in any proceeding to enforce this Agreement. (Id., Exhibit A [¶ 23].)

SANCTIONS

Plaintiff seeks sanctions against Hedley in the amount of $4,187.00 [calculated as follows: 10.6 hours attorney time at $395.00/hour].

Utilizing a Lodestar approach, and in view of the totality of the circumstances, the court finds that the total and reasonable amount of attorney’s fees and costs incurred for the work performed in connection with the pending motion is $1,580.00 [i.e., 4 hours at $395.00/hour].

CONCLUSION

The motion is unopposed. The court grants Plaintiff’s motion.