Section 664.6 of the Code of Civil Procedure “was enacted to provide a summary procedure for specifically enforcing a settlement contract without the need for a new lawsuit.” (Weddington Productions, Inc. v. Flick (1998) 60 Cal.App.4th 793, 809.) It states that “if parties to pending litigation stipulate, in a writing signed by the parties outside 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.” (Code of Civ. Proc., § 664.6.)
“[P]arties as used in section 664.6... means the litigants themselves, and does not include their attorneys of record.” (Mesa RHF Partners, L.P., v. City of Los Angeles (2019) 33 Cal.App.5th 918.) In order for a settlement agreement to be enforceable pursuant to CCP section 664.6, the settlement agreement must include the signatures of the parties seeking to enforce the agreement, and against whom enforcement is sought. (J.B.B. Investment Partners, Ltd. v. Fair (2014) 232 Cal.App.4th 974, 985.) An exception to this general rule exists were a liability insurer providing a defense without reservation of rights is agreeing to settle the claims within policy limits. (Fiege v. Cooke (2004) 125 Cal.App.4th 1350, 1354; Robertson v. Chen (1996) 44 Cal.App.4th 1290, 1295-1296.)
A settlement agreement is a contract and the general legal principles that apply to contracts generally apply to settlement agreements. (Sully-Miller Contracting Co. v. Gledson/Cashman Construction, Inc. (2002) 103 Cal.App.4th 30, 36.)
In deciding motions made under section 664.6, judges “must determine whether the parties entered into a valid and binding settlement.” (Kohn v. Jaymar-Ruby (1994) 23 Cal.App.4th 1530, 1533.) That is, the court, must decide whether an agreement is enforceable under the statute. (Terry v. Conlan (2005) 131 Cal.App.4th 1445, 1454.) The trial court may receive evidence, determine disputed facts, and enter terms of a settlement agreement as a judgment. (Bowers v. Raymond J. Lucia Companies, Inc. (2012) 206 Cal.App.4th 724, 732; Casa de Valley View Owner's Assn. v. Stevenson (1985) 167 Cal. App. 3d 1182, 1189.) The Court may also receive oral testimony in addition to declarations. (Kohn v. Jaymar-Ruby, Inc. (1994) 23 Cal.App.4th 1530, 1533.)
The Court may interpret the terms and conditions to settlement (Fiore v. Alvord (1985) 182 Cal.App.3d 561, 566), but the Court may not create 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.)
Strict compliance with the statutory requirements is necessary before a court can enforce a settlement agreement under this statute. (Sully-Miller Contracting Co. v. Gledson/Cashman Construction, Inc. (2002) 103 Cal.App.4th 30, 37.)
To obtain relief after the action has been dismissed, the parties must request that the Court retain jurisdiction to enforce the settlement. (Code of Civ. Proc., § 664.6.) “[T]he request must be made
(Wackeen v. Malis (2002) 97 Cal.App.4th 429, 440.)
The Court of Appeal has further clarified that it is insufficient to merely “includ[e] the language in a settlement agreement but not ask the court to retain jurisdiction.” (Sayta v. Chu (2017) 17 Cal.App.5th 960, 967.) In Sayta, although the parties had entered a valid, written settlement agreement that included a provision indicating the Court would retain jurisdiction pursuant to Code of Civil Procedure section 664.6, “nothing in the record indicates any part of it was communicated to the trial court before the dismissals. The parties were required to present to the trial court a proper request to retain jurisdiction for purpose of section 664.6 motions.” (Id.)
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