Judge Thomas D. Long, Case Number: 23STCV09737, Date: 2024-07-02 Tentative Ruling

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.)

In the settlement agreement, Defendants agreed to pay Plaintiff a total of $95,000.00, with $57,000.00 paid by Workforce Personnel Inc. and $38,000.00 paid by Le Pafe Inc. within one week of the effective date of the settlement. (Ebrahimian Decl., Ex. 3, ¶ 4.1.) Le Pafe Inc. make its payment, but Workforce Personnel Inc. did not.

Plaintiff seeks entry of judgment against both Workforce Personnel Inc. and Le Pafe Inc. It is undisputed that Le Pafe Inc. made its $38,000.00 payment. (Ebrahimian Decl. ¶ 12 & Ex. 5; see Le Pafe Opposition.) Because Le Pafe Inc. fulfilled its responsibilities under the settlement agreement, the Court will not enter judgment against it.

Defense counsel explains that on May 9, 2024, he received an email purportedly from Plaintiff’s counsel and forwarded it to the company’s accounting department. (Strange Decl. ¶¶ 3-5.) The email requested that the settlement funds be sent directly into Plaintiff’s counsel’s trust account, and it included instructions for the transfer. (Strange Decl., Ex. A.) However, the email was sent from arie@ebrarlavi.com, and Plaintiff’s counsel’s actual email address is arie@ebralavi.com—a difference in spelling by one letter. The email also included a nearly identical duplication of Plaintiff’s counsel’s signature block. (Compare Strange Decl., Ex. A with Ebrahimian Decl., Ex. 6.) Plaintiff’s counsel never actually asked for a wire transfer and did not provide the firm’s banking information. (Ebrahimian Decl. ¶ 27.) The Court takes judicial notice of the ICANN and the WHOIS database information for “ebrarlavi.com,” the domain associated with the email at issue. The registration information reflects a domain registration date of May 9, 2024 (the same day as the email to defense counsel) and a registrant contact in Reykjavik, Iceland. The registration information does not show any connection to Plaintiff’s counsel.

Pursuant to the instructions in the fraudulent email, defense counsel wired its $57,000.00 payment. (Strange Decl. ¶¶ 8-9.) Counsel later discovered that the wire transfer information was false and is in the process of having the $57,000.00 returned, at which time it will pay Plaintiff with a physical check in compliance with the settlement agreement. (Strange Decl. ¶¶ 10-13.)

Despite the unfortunate circumstances described by defense counsel, Workforce Personnel Inc. is nevertheless in breach of its payment obligations under the settlement agreement, and Plaintiff is entitled to seek entry of judgment in accordance with the settlement terms.

The motion to enforce settlement is GRANTED IN PART. The motion is granted for the balance owed by Workforce Personnel Inc. The motion is denied as to Le Pafe Inc.

The proposed judgment improperly seeks judgment against both Defendants jointly and severally when Le Pafe Inc. is not in breach of the settlement agreement. Plaintiff is ordered to file a revised proposed judgment within 30 days. The revised proposed judgment should be against Workforce Personnel Inc. only, for the principal amount of $57,000.00 and attorney fees of $4,500.00, for a total judgment of $61,500.00.

A Non-Appearance Case Review Re: Submission of Proposed Judgment is scheduled for August 2, 2024 at 8:30 a.m.

An Order to Show Cause Re: Dismissal of Defendant Le Pafe Inc. (Settlement) is scheduled for August 2, 2024 at 8:30 a.m.

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