Wells Fargo Bank, N.A. v. Judy A. Herrera

Case Number

23CV00338

Case Type

Hearing Date / Time

Mon, 04/14/2025 - 10:00

Nature of Proceedings

Plaintiff’s Motion to Vacate Dismissal and for Entry Of Judgment Under Terms Of Stipulated Settlement Agreement (CCP § 664.6.)

Tentative Ruling

Wells Fargo Bank, N.A. v. Judy A. Herrera        

Case No. 23CV00338

           

Hearing Date: April 14, 2025                                                  

HEARING:              Plaintiff’s Motion to Vacate Dismissal and for Entry Of Judgment Under Terms Of Stipulated Settlement Agreement (CCP § 664.6.)

                                                           

ATTORNEYS:        For Plaintiff Wells Fargo Bank, N.A.: Jon O. Blanda, Ashley         Mulhorn, Collection at Law, Inc.

For Defendant Judy A. Herrera: Self-Represented

TENTATIVE RULING:

Plaintiff Wells Fargo Bank, N.A.’s motion for order setting aside dismissal and for entry of judgment pursuant to Code of Civil Procedure section 664.6 is granted. The court will sign the proposed order and judgment.

Background:

This action commenced on January 27, 2023, by the filing of the complaint by plaintiff Wells Fargo Bank, N.A. (“plaintiff”) against defendant Judy A. Herrera (“defendant”). The complaint contains causes of action for Breach of Contract and Common Counts.

As alleged in the complaint:

On March 25, 2016, plaintiff issued defendant a credit card which defendant accepted, and used to purchase goods, services, and for cash advances. (Compl., ¶ BC-1.) In exchange for use of the card, defendant agreed to repay the principal along with interest and other charges. (Ibid.)

On April 9, 2021, defendant breached the agreement by failing to remit any further payments on the account. (Compl, ¶ BC-2.) Plaintiff suffered damages of $9,170.52. (Id. at ¶ BC-4.)

Defendant filed her answer to the complaint on March 9, 2023, asserting a general denial and affirmative defenses.

On August 22, 2023, the parties filed a signed “stipulation for entry of judgment and settlement and release & dismissal of action with consent to court retaining jurisdiction pursuant to C.C.P. § 664.6 & court order thereon.” (the “Agreement.”) (Mulhorn Dec., ¶ 3 & Exh. 1.)

The agreement provides that defendant was to make payments of $1,170.52 on or before September 4, 2023, followed by a $500.00 payment on or before the 4th of each and every consecutive month beginning on October 4, 2023, and continuing through January 4, 2025, for a total settlement of $9,170.52. (Agreement, ¶¶ 2, 3.)

As of the date of the filing of the present motion, defendant had made payments totaling $6,670.52, but has failed to make further payments and is in default of the agreement. (Mulhorn Dec., ¶ 5.)

On February 5, 2024, plaintiff’s counsel sent a letter to defendant informing her that she was in default and provided her with seven additional days to cure by paying the past amount due. (Mulhorn Dec., ¶ 6 & Exh. 2.) Defendant did not cure the default. (Id. at ¶ 7.)

Among other things, the Agreement provides:

“Judgment may be entered forthwith in favor of Plaintiff and against said Defendant in the total sum of $9,170.52, plus costs, minus credit for any payments actually made pursuant to this Stipulation for Entry of Judgment and Installment Payments.” (Agreement, ¶ 1.)

Plaintiff seeks judgment for $2,500.00 still owed plus costs for the filing fee of $225.00, for a total of $2,725.00. (Mulhorn Dec., ¶¶ 9, 10.)

Defendant now moves for entry of judgment, pursuant to Code of Civil Procedure section 664.6.

The motion was served on defendant, via mail, on January 29, 2025.

Defendant has filed no opposition or other response to the motion.

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) 167 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.” (Ibid.)

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.

The motion will be granted. The court has reviewed the proposed order and judgment and intends on signing them.