Judge: Stephanie M. Bowick, Case: BC721593, Date: 2024-01-23 Tentative Ruling
DEPARTMENT 19 LAW AND MOTION RULINGS
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Case Number: BC721593 Hearing Date: January 23, 2024 Dept: 19
After consideration of the briefing filed and oral
argument at the hearing, Plaintiff National Collegiate Student Loan
Trust 2007-4’s unopposed Motion to Set Aside CCP 664.6 Dismissal, And Enter
Judgment Against Defendant is GRANTED in part.
The Court enters judgment in favor of Plaintiff and
against Defendant Rita A Reedy $52,929.38.
The Court signs the proposed judgment filed on October
18, 2023 after revising Section 6(a)(4) to indicate $502.50 and Section 6(a)(6)
to indicate $52,929.38.
Counsel for Defendant to give notice.
STATEMENT OF THE CASE
This is a breach of contract action. Plaintiff National
Collegiate Student Loan Trust 2007-4 (“Plaintiff”) brings suit against
Defendants Rita A Reedy and Somjai R Reedy (collectively, “Defendants”)
alleging the following cause of action:
1.
Breach
of Contract.
On March 18, 2019, Defendant Somjai R Reedy was
dismissed.
On March 29, 2019, pursuant to
the Stipulated Settlement Agreement between Plaintiff and Defendant Rita A
Reedy, the Court dismissed the action without prejudice and retained
jurisdiction pursuant to Code of Civil Procedure section 664.6.
Plaintiff filed the instant Motion
to Set Aside CCP 664.6 Dismissal, And Enter Judgment Against Defendant (the
“Motion”).
GROUNDS FOR MOTION
Pursuant to Code of Civil
Procedure section 664.6, Plaintiff moves to enforce the Stipulated Settlement
Agreement (the “Stipulation”) on the ground that Defendant Rita A Reedy
defaulted under the terms of the agreement.
DISCUSSION
Code of Civil Procedure section
664.6 provides, in relevant part, as follows:
(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.
(Code Civ. Proc., § 664.6(a),
(b).)
“Section 664.6 was enacted to
provide a summary procedure for specifically enforcing a settlement contract
without the need for a new lawsuit.” (Weddington Productions, Inc. v. Flick
(1998) 60 Cal.App.4th 793, 809.) In deciding motions made under Section 664.6,
the court “must determine whether the parties entered into a valid and binding
settlement.” (Kohn v. Jaymar-Ruby (1994) 23 Cal.App.4th 1530, 1533.)
The term “parties” as used in
section 664.6 “means the litigants themselves, and does not include their
attorneys of record.” (Levy v. Superior Court (1995) 10 Cal.4th 578,
586.) “Requiring the litigants themselves to stipulate to a settlement
agreement ‘impress[es] upon them the seriousness and finality of the decision
to settle, and minimizes the possibility of conflicting interpretations of the
settlement.’” (Johnson v. Department of Corrections (1995) 38
Cal.App.4th 1700, 1708 (quoting Levy v. Superior Court (1995) 10 Cal.4th
578, 585).)
“The power of the trial court
under Code of Civil Procedure section 664.6, however, is
extremely limited. Although a judge hearing a section 664.6 motion may
receive evidence, determine disputed facts, and enter the terms of a settlement
agreement as a judgment, nothing in section 664.6 authorizes a judge to create the
material terms of a settlement, as opposed to deciding what terms the
parties themselves have previously agreed upon.” (Hernandez v. Board of
Educ. of Stockton Unified School Dist. (2004) 126 Cal.App.4th 1161,
1176.) “The court is powerless to impose on the parties more restrictive or
less restrictive or different terms than those contained in their settlement
agreement.” (Id.).
The Stipulation provides that
Defendant Rita A Reedy agrees that $60,524.38 is owed to Plaintiff due to the
breach of the alleged contract, which includes $502.50 in costs. (Stipulation,
§§ 1, 5.) However, the Stipulation provides that, if Defendant Rita A Reedy
makes the required $245.00 monthly payments when due, she will be entitled to a
discount of $32,594.38 beginning August 5, 2028. (Id. at § 6.)
However, the Stipulation provides
that, if Defendant Rita A Reedy defaults on the repayment agreement, she
forfeits the discount, will owe the full $60,524.38, and that Plaintiff shall
be entitled to set aside the dismissal of the action and obtain a judgment in
favor of Plaintiff and against Defendant Rita A Reedy for the full $60,524.38
minus any amount paid by Defendant Rita A Reedy. (Id. at § 10.)
After consideration of the declaration of Stephanie
Boone, the Court finds that Defendant Rita A Reedy defaulted on the terms of
the Stipulation and has paid $7,595.00 (Stephanie Boone Decl., ¶¶ 9-10.)
As such, the Court finds that Plaintiff is entitled to entry of judgment against Defendant Rita A Reedy for $52,929.38. (Court's calculations: $60,524.38 - $7,595.00 (credit) = $52,929.28. The Stipulation provides for full resolution of the case.
The Court notes that Plaintiff filed a Memorandum of
Costs on October 18, 2023 that seeks an additional $60.00 in costs above the
$502.50 agreed to in the Stipulation.
Accordingly, the Motion is GRANTED in part and the Court
enters judgment in favor of Plaintiff and against Defendant Rita A Reedy $52,929.38.