Judge Ronald F. Frank, Case Number: YC070892, Date: 2024-03-08 Tentative Ruling

Judge: Ronald F. Frank, Case: YC070892, Date: 2024-03-08 Tentative Ruling

Case Number: YC070892 Hearing Date: March 8, 2024 Dept: 8

Tentative Ruling¿

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HEARING DATE: March 8, 2024¿¿

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CASE NUMBER: YC070892

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CASE NAME: Groundwork Group, Inc. dba Frontline Finish v. H.S.K. Investments, LLC, et al.

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MOVING PARTY: Plaintiff, Groundwork Group Inc. dba Frontline Finish

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RESPONDING PARTY: Defendant, HC Automotive, Inc., HNL Automotive Inc., Payless Cars, Inc. and HK Automotive, Inc. (No Opposition)

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DISPOSED OF DATE: March 14, 2023

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MOTION:¿ (1) Motion to Enter Stipulation for Judgment

Tentative Rulings: (1) GRANTED

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I. BACKGROUND¿¿

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A. Factual¿¿

Plaintiff moves seeking an entry from this Court of a Court Judgement against HC Automotive, Inc., HNL Automotive Inc., Payless Cars, Inc., and H K Automotive, Inc (collectively, “Defendants”) and in favor of Plaintiff under Code of Civil Procedure § 664.6.

This case involved a prior contractual relationship, where Defendants owed money to Plaintiff based on unpaid invoices for services rendered. As a result, Plaintiff initiated the lawsuit. After the initiation of the lawsuit, Plaintiff notes the parties entered into a settlement agreement and release. Between February 6, 2023 and February 8, 2023, the settlement agreement was executed and signed by the Defendants’ representatives, and Plaintiff signed the agreement on February 2, 2023. After the parties executed the Settlement Agreement, Plaintiff filed its Application for Court Order Reserving Jurisdiction over Parties pursuant to Code of Civil Procedure § 664.6.

On March 14, 2023, this Court issued a minute order noting that it retains jurisdiction to make orders to enforce any and all terms of the settlement, including judgment, pursuant to Code of Civil Procedure § 664.6. Plaintiff now asserts that Defendants have failed to fully perform under the Settlement Agreement, having failed to make any of the promised payments. Thus, Plaintiff has brought his action to enforce Defendant’s promise to pay under the provisions of Code of Civil Procedure § 664.6 and requests entry of a court judgment.

B. Procedural

On January 8, 2024, Plaintiff brought this Motion to Enter Judgment based on Stipulation of the Parties. To date, no opposition has been filed.

II. ANALYSIS¿

A. Legal Standard

Code of Civil Procedure section 664.6 provides:

(a)¿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.

(b) For purposes of this section, a writing is signed by a party if it is signed by any of the following:

(1) The party.

(2) An attorney who represents the party.

(3) If the party is an insurer, an agent who is authorized in writing by the insurer to sign on the insurer's behalf.”

“Section 664.6 was enacted to provide a summary procedure for specifically enforcing a settlement contract without the need for a new lawsuit.” (Chan v. Lund (2010) 188 Cal.App.4th 1159, 1165-66 [quoting Weddington Productions, Inc. v. Flick (1998) 60 Cal.App.4th 793, 809-10].)

B. Discussion

Here, Plaintiff notes that pursuant to paragraph 5 of the Settlement Agreement, there were two payment alternative options, including an “Optional Payment Deferral – Alternative Payment.” This option allowed the Defendants additional time to pay the stipulated amount agreed upon in the settlement agreement. Plaintiff notes, specifically, paragraph 5(b) of the Settlement Agreement, the Optional Payment Deferral allowed:

“Defendant shall send a single payment of $60,000.00, less credit for prior payments made under this Settlement Agreement. Defendant's alternative payment shall be delivered by May 15, 2023, and in accordance with the terms of this Settlement Agreement”

However, Plaintiff notes that Defendants failed to pay by May 15, 2023. Further however, Plaintiff notes that paragraph 6(a) of the Settlement Agreement “Delinquency” was defined as: “If any payment is not received from the Defendant by any due date stated in Paragraph 5, the Defendant shall be considered delinquent.” Under this paragraph, if the defendants became delinquent, Plaintiff was required to send notice to defense counsel as follows: “In the event of a Defendant's delinquency, notice shall be sent by first-class mail advising the Defendant of the delinquency and requesting that all unpaid amounts be actually received within 10 calendar days from date of notice ("Notice of Delinquency").” (Plaintiff’s Exhibit 1: Settlement Agreement ¶ 6.) On May 18, 2023, Plaintiff’s counsel did send a Notice of Delinquency to Defense Counsel requesting payment of all delinquent amounts due under the Settlement Agreement.

On June 7, 2023, Plaintiff notes its counsel sent a second Notice of Delinquency to Defense Counsel requesting payment of all delinquent amounts due under the Settlement Agreement. However, Plaintiff contends that despite these notices of delinquency, the Defendants failed to cure their delinquency. Plaintiff sent both notices of delinquency by first class US mail in accordance with the Settlement Agreement. Plaintiff’s counsel notes that counsel even telephoned Defense counsel, advising him of Defendant’s default, and requesting the default be cured. However, despite the multiple notices, Defendants have failed to cure their defaults.

Plaintiff asserts that pursuant to the Settlement Agreement, Defendants agreed to pay $60,000. Paragraph 6(e) of the Settlement Agreement is titled “The Default Amount” to be entered under the stipulation to enter conditional judgment is $60,000, less credit for prior payments made under this agreement, plus accrued interest from January 26, 2023.” Further, Paragraph 8 of the Settlement agreement notes that Plaintiff is entitled to actual attorneys’ fees and costs incurred in pursuing this motion. Plaintiff notes Defendants have paid nothing toward the agreed upon amount, and thus the settlement seeks: (1) $60,000 of the principal balance; (2) $6,690.41 in accrued interest; (3) $79.35 in costs; and (4) $1,080 in attorneys’ fees. This totals to $67,849.76.

This Court finds that Plaintiff has carried its burden in ensuring all requirements of Code of Civil Procedure § 664.6. As such, the Court enters judgment in the amount of $67,849.76, having found the attorney’s fees, costs, and accrued interest to be reasonable, amounted for in the settlement agreement, and having met the burden under section 664.6.

IV. CONCLUSION

For the foregoing reasons, Plaintiff’s Motion to Enter Stipulation for Judgment is GRANTED.

Plaintiff is ordered to give notice. ¿¿