Cavalry SPV I LLC vs Alexandra Rodriguez

Case Number

20CV02239

Case Type

Hearing Date / Time

Mon, 09/09/2024 - 10:00

Nature of Proceedings

CMC; Motion: Entry of Judgment Pursuant to Default Under Settlement and Release Agreement

Tentative Ruling

Cavalry SPV I LLC v. Alexandra Rodriguez

Case No.  20CV02239

Hearing Date:         9/9/2024                                                         

HEARING:    Motion to enter judgment pursuant to defendant’s default under settlement and release.           

ATTORNEYS:           Spencer Penuela of Gurstel Law Firm, PC for plaintiff Cavalry SPV I LLC, as assignee of Citibank, N.A. 

                                    S Jenna Moreno-Cortez of Robert S. Gitmeid & Assoc. for defendant Alexandra Rodriguez

                       

TENTATIVE RULING:  

The motion will be granted.

BACKGROUND: This is a collections case, arising from a credit card debt owed by defendant to Citibank, N.A., which was assigned to plaintiff Cavalry SPV I LLC. The complaint was filed on July 8, 2020, praying for the amount of $3,976.99. Defendant answered the complaint on August 11, 2020, generally denying the allegations, and asserting several affirmative defenses.

On August 20, 2020, defendant executed a document entitled “Stipulation for Entry of Judgment [CCP § 664.6] and Notice of Conditional Settlement [CRC Rule 3.1385],” in which she agreed to pay a settlement amount of $3,380.00, and in the event of a default, agreed that judgment would be entered against her in the principal amount of $3,976.99, with costs of $309.50, less any payments made. The Stipulation provided that defendant would make monthly payments of $97.000 commencing September 7, 2020, until the amount was paid in full. The Stipulation further provided for the court to retain jurisdiction over the parties in order to enforce the settlement pursuant to Code of Civil Procedure section 664.6, until performance in full of its terms and, if defendant made all payments required, plaintiff would dismiss the action with prejudice on or before August 21, 2023, which was 45 days after the last payment due. The Stipulation advised the defendant that if defendant defaulted on any payment, plaintiff would submit the stipulation to the court with a declaration of plaintiff’s counsel notifying the court that the conditions had not been met, and request that a judgment be entered pursuant to the stipulation.

On September 11, 2020, plaintiff filed a Notice of Settlement of Entire Case, advising the court of the conditional settlement of the case.

The Stipulation was executed by an authorized agent for plaintiff on January 11, 2024, which the Court presumes was subsequent to defendant’s default in payments under its terms.

On April 30, 2024, plaintiff filed its original motion for entry of judgment pursuant to defendant’s default under the settlement agreement, setting the hearing on the motion for July 1, 2024. The motion documents did not include a Proof of Service establishing that they had been served upon defendant.

At the July 1, 2024, hearing on the motion, the Court continued the hearing on the motion to September 9, 2024, with instructions that plaintiff appropriately serve a copy of the motion on defendant.

On July 3, 2024, plaintiff filed the current Amended Motion for Entering Judgment Pursuant to Defendant’s Default Under Settlement and Release Agreement. The motion documents indicate service upon defendant’s attorney.

In the declaration of counsel which is included in the motion documents, counsel declares that plaintiff was paid only $1,940.00 of the $3,380.00 which was owed under the stipulated settlement agreement. Pursuant to the terms of the agreement, which permitted the base judgment amount in case of default to be $3,976.99, plus costs agreed to of $309.50, less the amount of the payments made ($1,940.00), plaintiff seeks entry of judgment in favor of plaintiff and against defendant in the total amount of $2,346.49, which amount includes costs.

ANALYSIS: The motion is granted.

Pursuant to Code of Civil Procedure section 664.6(a), if parties to pending litigation stipulate, in a writing signed by the parties outside of the presence of the court, for settlement of the case, 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.

The parties to this action both executed the stipulation, under which they agreed to settle the litigation for a discounted amount of the debt which was owed, on condition that defendant make monthly payments of $97.00 until that amount was paid in full. If defendant defaulted on the payments, plaintiff would be permitted to obtain judgment for the full amount of the debt, plus costs, less the amount of any payments made.

Defendant defaulted on the payments required by the stipulation after paying a total of $1,940.00 toward her debt. Pursuant to the terms of the stipulation, plaintiff is therefore entitled to judgment in the principal amount of $2,036.99 (original base judgment amount of $3,976.99, from which the payments of $1,940.00 have been deducted), plus agreed costs of $309.50, for a total judgment amount of $2,346.49.

The terms of the stipulated settlement have been met, and the Court will therefore grant the motion, ordering that judgment be entered in the total amount of $2,346.40, which amount is inclusive of costs. The Court has reviewed the proposed Judgment submitted by plaintiff, which complies with the terms of this ruling, and intends to execute it.