Partners Personnel Management Services, LLC. v. Powdercoat Services, LLC

Case Number

24CV00096

Case Type

Hearing Date / Time

Wed, 07/17/2024 - 10:00

Nature of Proceedings

Plaintiff Partners Personnel Management Services, LLC’s Motion to Enter Judgment Pursuant to Defendant’s Default Under Settlement and Release Agreement (Code Civ. Proc., § 664.6.)

Tentative Ruling

For Plaintiff Partners Personnel Management Services, LLC.: Cheryl A. Canty                       

For Defendant Powdercoat Services, LLC: David Bland

          

RULING

For all reasons discussed herein, plaintiff Partners Personnel Management Services, LLC’s motion to enter judgment pursuant to defendants’ default under settlement and release agreement is GRANTED. The court will sign the proposed order submitted by plaintiff.

Background:

This action commenced on January 8, 2024, by the filing of the complaint by plaintiff Partners Personnel Management Services, LLC (“plaintiff”) against defendant Powdercoat Services, LLC, (“defendant”) for breach of contract, nonpayment on an open book account, and nonpayment on an account stated.

As alleged in the complaint: In July 2017, defendant entered into a written agreement with plaintiff for the provision of staffing services. (Complaint, ¶ 5.) Between October 2023, and December 2023, defendant utilized plaintiff’s temporary labor and plaintiff paid the wages, taxes, benefits, and workers’ compensation premiums for the labor utilized by defendant. (Id., ¶ 7.) Despite demands for payment, defendant has not paid plaintiff, as agreed, between October 2023, and December 2023. (Id., at ¶ 9.)

If defendant was served with the summons and complaint, plaintiff did not file proof of service of the same.

On March 1, 2024, the parties entered into a written settlement agreement providing for the payment of $100,000.00, in equal payments made over a twelve-month period beginning on March 28, 2024. (Canty Dec., ¶ 3 & Exh. A.) The parties also executed a “Stipulation for Entry of Order Re: Court’s Retention of Jurisdiction Pursuant to California Code of Civil Procedure Section 664.6.” (Id., at ¶ 4 & Exh. B.) Defendant defaulted and, as of the date of the filing of the present motion, has failed to cure the default or make any payment. (Id., at ¶ 5.) The settlement agreement provides that in the event of default, plaintiff could recover interest from the date of default at the rate of ten percent plus costs and attorney’s fees. (Id., at ¶ 8.) Plaintiff seeks the balance owed pursuant to the agreement of $100,000.00, $40.00 for motion fees, interest of $2,000.00 and attorney’s fees of $5,050.00, for a total of $107,090.00.

Plaintiff now moves to enter judgment pursuant to Code of Civil Procedure section 664.6, including agreed upon costs, attorney’s fees, and interest. No opposition or other responsive documents have been filed by defendant.

Analysis

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.

(c) Paragraphs (2) and (3) of subdivision (b) do not apply in a civil harassment action, an action brought pursuant to the Family Code, an action brought pursuant to the Probate Code, or a matter that is being adjudicated in a juvenile court or a dependency court.

(d) In addition to any available civil remedies, an attorney who signs a writing on behalf of a party pursuant to subdivision (b) without the party’s express authorization shall, absent good cause, be subject to professional discipline.”

“A court ruling on a motion under Code of Civil Procedure section 664.6 must determine whether the parties entered into a valid and binding settlement.” (Hines v. Lukes (2008) Cal.App.4th 1174, 1182.) “If the court determines that the parties entered into an enforceable settlement, it should grant the motion and enter a formal judgment pursuant to the terms of the settlement.” (Id.)

A court hearing a motion brought under section 664.6 may “receive evidence, determine disputed facts, and enter the terms of a settlement agreement as a judgment”, but may not “create the material terms of a settlement, as opposed to deciding what terms the parties themselves have previously agreed upon.” (Weddington Productions, Inc. v. Flick (1998) 60 Cal.App.4th 793, 810.)

“A settlement agreement is a contract, and the legal principles which apply to contracts generally apply to settlement contracts.” (Ibid.) “In order for acceptance of a proposal to result in the formation of a contract, the proposal “ ‘must be sufficiently definite, or must call for such definite terms in the acceptance, that the performance promised is reasonably certain.’ ” [Citation.] A proposal “ ‘cannot be accepted so as to form a contract unless the terms of the contract are reasonably certain. [¶] The terms of a contract are reasonably certain if they provide a basis for determining . . . the existence of a breach and for giving an appropriate remedy.’ ” [Citation.] If, by contrast, a supposed “ ‘contract’ ” does not provide a basis for determining what obligations the parties have agreed to, and hence does not make possible a determination of whether those agreed obligations have been breached, there is no contract. (See, e.g., 1 Williston on Contracts (4th ed. 1990, Lord) § 4:18, p. 414 [“It is a necessary requirement that an agreement, in order to be binding, must be sufficiently definite to enable the courts to give it an exact meaning.”]; see also Civ. Code § 3390, subd. 5 [a contract is not specifically enforceable unless the terms are “ ‘sufficiently certain to make the precise act which is to be done clearly ascertainable.’ ”] )” (Id. at pp. 811-812.)

The parties entered into a valid and enforceable contract, with reasonably certain terms, and have agreed that the court retains jurisdiction to enforce the terms of the settlement agreement pursuant to Code of Civil Procedure section 664.6.

As noted above, the parties executed and filed a “Stipulation for Entry of Order Re: Court’s Retention of Jurisdiction Pursuant to California Code of Civil Procedure Section 664.6.” “A written stipulation between attorneys recognizing jurisdiction of the court over the parties constitutes a General appearance by defendant.” (General Ins. Co. v. Superior Court (1975) 15 Cal.3d 449, 453.)

The motion will be granted. The court has reviewed the proposed order submitted by plaintiff and will sign it as drafted.