Judge Thomas D. Long, Case Number: 22STCV31186, Date: 2024-05-21 Tentative Ruling

On March 19, 2024, Plaintiff filed a motion to enforce the settlement and to enter judgment. Plaintiff’s request for judicial notice is denied as unnecessary because the filings are already part of this case’s record.

Courts may enter judgments pursuant to written settlements signed by the parties. (Elyaoudayan v. Hoffman (2003) 104 Cal.App.4th 1421, 1428; Code Civ. Proc., § 664.6.) Strict compliance with the statutory requirements is necessary before a court can enforce a settlement agreement. (Sully-Miller Contracting Co. v. Gledson/Cashman Construction, Inc. (2002) 103 Cal.App.4th 30, 37.) The party seeking to enforce a settlement “must first establish the agreement at issue was set forth ‘in a writing signed by the parties’ (§ 664.6) or was made orally before the court. [Citation.]” (Harris v. Rudin, Richman & Appel (1999) 74 Cal.App.4th 299, 304.)

Plaintiff and Defendant signed a settlement agreement on February 2 and 7, 2024. (Holzman Decl. ¶ 2.) Defendant agreed to pay Plaintiff a total of $66,000.00, with $18,000.00 of that payment being directed to Plaintiff’s counsel from the arbitration retainer reimbursement provided by JAMS, leaving a settlement balance of $48,000.00. (Holzman Decl., Ex. A [“Settlement Agreement”], ¶ 2.) Plaintiff’s counsel did receive the $18,000.00 reimbursement from JAMS. (Holzman Decl. ¶ 5.) Defendant’s payment was due within 10 days after Defendant received a signed copy of the Settlement Agreement and Form W9. (Settlement Agreement ¶ 2; see Holzman Decl. ¶¶ 3-4 & Exs. B-C.) To date, Defendant has not made any settlement payment. (Holzman Decl. ¶ 5.)

Plaintiff seeks entry of judgment in the amount of $53,000.00 plus attorney fees. (Holzman Decl. ¶ 5; see Settlement Agreement ¶ 11 [attorney fees provision].) This is the sum of the $48,000.00 balance owed plus a $5,000.00 penalty due to Defendant’s breach.

The Settlement Agreement provides that “in the event Employer fails to make the Settlement Payment within the time specified in this Agreement, Employer shall pay to Employee an additional $5,000 in addition to all outstanding sums under this Agreement.” (Settlement Agreement ¶ 2.) “‘“[A]n amount disproportionate to the anticipated damages is termed a ‘penalty.’ A contractual provision imposing a ‘penalty’ is ineffective, and the wronged party can collect only the actual damages sustained.”’ [Citation.]” (McGuire v. More-Gas Investments, LLC (2013) 220 Cal.App.4th 512, 522.) Accordingly, this provision is unenforceable, and Plaintiff cannot collect an additional $5,000.00 penalty for Defendant’s breach.

Plaintiff requests $1,845.00 in attorney fees for this motion. (Motion at p. 4; Barari Decl. ¶ 4.) This represents three hours spent on drafting the motion at counsel’s rate of $595, plus a $60.00 filing fee. (See Barari Decl. ¶¶ 3-4.) The Court will not award additional fees for “reviewing Defendant’s Opposition to the motion(s), [and] drafting a Reply brief if needed” because the motion is unopposed. (Barari Decl. ¶ 4.)

The unopposed motion to enforce settlement is GRANTED. The Court will enter a judgment in favor of Plaintiff and against Defendant in the total amount of $49,845.00 ($48,000.00 balance plus $1,845.00 attorney fees).

Parties who intend to submit on this tentative must send an email to the Court at SMCDEPT48@lacourt.org indicating intention to submit. If all parties in the case submit on the tentative ruling, no appearances before the Court are required unless a companion hearing (for example, a Case Management Conference) is also on calendar.

Hon. Thomas D. Long

Judge of the Superior Court