Sayta v. Chu
Sayta v. Chu
Opinion of the Court
*962Code of Civil Procedure section 664.6 provides a summary, expedited procedure to enforce settlement agreements.
In this matter, Shaunak Sayta filed suit against respondents Edmund Chu, Peter Chin, Susan Lai, and Taia Chin (Chu's niece; hereafter Taia),
Because the parties failed to request, before dismissal, that the trial court retain jurisdiction to enforce the settlement, or alternatively seek to set aside the dismissals, we find the court lacked jurisdiction to entertain the motion. We therefore reverse on that basis and do not reach the merits.
*963I. BACKGROUND AND PROCEDURAL HISTORY
Taia rented an apartment on 16th Street in San Francisco, owned by Chu *847and Chin. In August 2012, Sayta entered into a 12-month lease agreement with Taia for a bedroom in the apartment. By its terms, lease renewal was on a month-to-month basis after August 2013. Between 2013 and 2015, a series of disputes between Sayta and respondents regarding the tenancy resulted in actions before the superior court and San Francisco Rent Board. In January 2015, Sayta filed suit in superior court against respondents, alleging contract and tort claims. Chu and Chin cross-complained. Thereafter, respondents and Sayta entered into a written "Settlement Agreement and Stipulation for Conditional Entry of Judgment for Possession of Real Property" (Agreement). The terms of the Agreement provided, inter alia, for a mutual general release, dismissal of the complaint and cross-complaint, withdrawal of any pending rent board petitions, termination of Sayta's tenancy, waiver by respondents of claims for unpaid rent, and return of Sayta's security deposit. The Agreement included a provision that its terms "shall remain confidential" and provided for liquidated damages of $15,000 for breach of that provision. As discussed post , the Agreement also provided for summary enforcement pursuant to section 664.6. Both the complaint and cross-complaint were dismissed in June 2015.
In April 2016, Sayta filed a motion in superior court under section 664.6 to enforce the Agreement.
Respondents opposed the motion, acknowledging Chin provided the rent board a copy of the Agreement, but denied it was a breach of the Agreement *964to do so. They alleged Chin provided the copy only in response to the rent board's request for a reply to an earlier-filed proceeding against respondents that Sayta had failed to dismiss. Respondents also noted the existence of at least six prior public court or rent board proceedings between the parties. In reply, Sayta contended Chin's filing with the rent board was entirely gratuitous and not required within the meaning of the Agreement. Sayta argued the specified liquidated damages should be awarded regardless of whether actual damage had been shown.
The court heard the motion on May 18, 2016,
*848II. DISCUSSION
A. Section 664.6
Section 664.6 provides that "[i]f 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." " Section 664.6 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)
Paragraph 11 of the Agreement provides in relevant part: "All parties shall dismiss their entire claims and causes of action ... subject to the parties' express agreement and request that the Court retain jurisdiction pursuant to [ section] 664.6 to enforce the remaining terms of this settlement agreement and judgment in the event any party fails to comply with all the obligations set forth herein. In the event the matter is dismissed, and pursuant to the *965express statement set forth in Wackeen v. Malis (2002) 97 [Cal.App.4th] 429 [
While paragraph 11 provides that the parties would request the superior court to retain jurisdiction pursuant to section 664.6, and that the court could set aside the dismissals on the request of either party, nothing in the record before us indicates that any party did either. We therefore ordered the parties to provide supplemental briefing addressing the question of whether the trial court had subject matter jurisdiction over Sayta's motion in these circumstances. Although we directed counsel's attention to relevant case authority, both sides either ignored or misinterpreted that authority. At the scheduled oral argument, we directed the parties to submit further supplemental letter briefs specifically addressing the application of Hagan Engineering, Inc. v. Mills (2003)
B. Necessity of Retained Jurisdiction
"By its very terms, section 664.6 is limited to settlements reached in pending litigation." ( Viejo Bancorp, Inc. v. Wood (1989)
In 1993, section 664.6 was amended "as the Legislature's solution to the problem presented in Viejo Bancorp ." ( Wackeen v. Malis (2002)
In their first supplemental briefing, both parties acknowledged Wackeen (and indeed referenced it in paragraph 11 of the Agreement). Both sides appeared to ignore, however, Wackeen's discussion of the requirements for a proper request for retention of section 664.6 jurisdiction. "That is, the request for retention of jurisdiction must conform to the same three requirements which the Legislature and the courts have deemed necessary for section 664.6 enforcement of the settlement itself: the request must be made (1) during the pendency of the case, not after the case has been dismissed in its entirety, (2) by the parties themselves, and (3) either in a writing signed by the parties or orally before the court." ( Wackeen, supra, 97 Cal.App.4th at p. 440,
*967Wackeen does not stand for the proposition that parties may confer jurisdiction *850on trial courts by including language in a settlement agreement but not asking the court to retain jurisdiction. ( Hagan, supra, 115 Cal.App.4th at p. 1010,
Sayta continues to assert that a settlement agreement containing an uncommunicated request to retain jurisdiction need only be entered into "during the pendency of a civil action (i.e., after commencement of a lawsuit and prior to dismissal of that same suit)." Sayta attempts to distinguish Hagen as a case in which the moving party's section 664.6 motion "sought entry of a judgment (injunctive and other additional relief) and not merely enforcement of the terms of the agreement based on the existing judgment." We find his efforts unsupported by any authority and unpersuasive. Sayta continues to blithely ignore the fact that the issue is not what relief the trial court can grant, but whether it has jurisdiction to grant any .
The parties made their Agreement confidential, and 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. ( Wackeen, supra , 97 Cal.App.4th at p. 439,
"[A]lthough section 664.6 provides a valuable tool in aid of enforcing settlements, it does not float in the ether to be drawn upon whenever a party seeks enforcement." ( Hagan, supra, 115 Cal.App.4th at p. 1008,
We express no view on whether remedies remain available to the parties under section 473.
III. DISPOSITION
The order denying Sayta's motion for enforcement of the Agreement is void for lack of subject matter jurisdiction. The *851matter is remanded to the superior court with directions to vacate the order. Neither party shall recover costs on appeal.
WE CONCUR:
JONES, P. J.
SIMONS, J.
Undesignated statutory references are to the Code of Civil Procedure.
Sayta alleged that Chu, Chin, and Lai owned and managed the subject property. Sayta also sued respondents' attorney David Foran and his law firm. The complaint against Foran and his firm was dismissed on their anti-SLAPP motion (§ 425.16), and they are not parties to this appeal.
We have only a minimal partial record of the underlying action and must rely largely on what appears to be undisputed pleading allegations of the parties. We question whether the record would be adequate for meaningful appellate review if we were required to address the merits. It should be unnecessary to remind counsel that " '[a] judgment or order of the lower court is presumed correct. All intendments and presumptions are indulged to support it on matters as to which the record is silent, and error must be affirmatively shown. This is not only a general principle of appellate practice but an ingredient of the constitutional doctrine of reversible error.' " (Denham v. Superior Court(1970)
Both parties agree the Agreement is valid, binding, and enforceable. The only issue before the trial court was whether the Agreement had been breached.
No transcript or other record of the hearing has been provided on appeal.
At least one court has concluded that an order denying a motion for judgment under section 664.6 is nonappealable. (Doran v. Magan(1999)
Sayta submitted an untimely and oversized brief, and in apparent reply to respondents' second supplemental brief, in violation of the directions of our November 16, 2017 order. We nevertheless grant Sayta's application for permission to file the noncompliant brief to address the merits of issues raised therein.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.