Tentative Ruling

Judge Pauline Maxwell
Department 6 SB-Anacapa
1100 Anacapa Street P.O. Box 21107 Santa Barbara, CA 93121-1107

CIVIL LAW & MOTION
American Express National Bank vs John C Sasala
Case No: 18CV02426
Hearing Date: Wed Jan 15, 2020 9:30

Nature of Proceedings: Vacate Dismissal and Enter Judgment

TENTATIVE RULING: The motion is granted. The dismissal of the action is vacated, and judgment shall be entered against defendant in the total amount of $18,708.95, inclusive of court costs, pursuant to the terms of Code of Civil Procedure section 664.6.

Background: This is a limited collections action, which was settled by the parties in August 2018, through execution of a Stipulation for Conditional Entry of Judgment. Under the stipulation, defendant agreed to make monthly payments (beginning at $200/month, and increasing over time to $500/month) toward the principal amount due of $19,750, plus the $468.95 in court costs incurred by plaintiff in bringing the action, for a total of $20,218.95. Payments were to begin in August, 2018, and the total amount would be paid off by August 2022. Pursuant to the terms of the stipulation, if defendant failed to make any payment on time or if any payment was refused or returned by the bank upon which it was drawn, defendant would be in default. Plaintiff would then notify defendant of the default in wiring via e-mail sent to defendant’s specified e-mail address, and defendant would be permitted to cure the default within 7 days. If he did not do so, the Stipulation allowed plaintiff to obtain judgment pursuant to Code of Civil Procedure section 664.6 for the entire balance owed, plus court costs expended, less any payments made to that date. Pursuant to the terms of the Stipulation, the court retained jurisdiction over the parties to enforce the settlement, until the settlement was fully performed. If and when the settlement was fully performed, the action would be dismissed with prejudice.

The action was dismissed on November 16, 2018. Defendant made payments totaling $1,600 toward the settlement amount, but has failed to make any further payments on the balance. In accordance with the Stipulation, plaintiff sent a letter via e-mail to defendant on April 3, 2019, advising of the defaulted status, and informing defendant that unless he cured the default within 7 days of the letter, plaintiff would be forced to file a motion requesting entry of judgment pursuant to Code of Civil Procedure section 664.6. When the default was not cured, plaintiff filed the current motion to vacate the dismissal and enter judgment against defendant pursuant to Section 664.6. Plaintiff seeks a judgment totaling $18,708.95, calculated by deducting the $1,600 in payments made from the $19,750 in principal owed pursuant to the Stipulation, plus $558.95 in costs (the original $468.95 in court costs that was a part of the original Conditional Entry of Judgment, plus the $90 fee for the current motion).

Plaintiff filed a notice that it would submit the motion on the papers, and would not appear at the hearing. The motion was properly served upon defendant, who has not filed opposition.

ANALYSIS: The Court will grant the motion, vacate the dismissal of the action, and enter judgment against defendant in the amount of $18,708.95, inclusive of court costs, as permitted by Code of Civil Procedure section 664.6.

The Court finds that the stipulation of the parties properly retained the court’s jurisdiction to allow enforcement of the settlement through entry of a judgment for any amounts remaining due upon a default by the defendant. Plaintiff properly advised defendant of his right to cure the default, and the default was not timely cured. Consequently, it is appropriate to vacate the dismissal which was entered pursuant to the terms of the stipulation, and to enter judgment against defendant.