Garcia v. Stellar Recovery Inc.

Filing 45

ORDER RE 32 MOTION TO ENFORCE SETTLEMENT. Signed by Judge Beth Labson Freeman on 7/27/2017. (blflc1S, COURT STAFF) (Filed on 7/27/2017)

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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SAN JOSE DIVISION

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DINA GARCIA,
Plaintiff,

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United States District Court
Northern District of California

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Case No. 16-cv-00521-BLF
ORDER RE MOTION TO ENFORCE
SETTLEMENT

v.
STELLAR RECOVERY INC.,

[Re: ECF 32]

Defendant.

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Plaintiff Dina Garcia (“Garcia”) filed this putative class action against Defendant Stellar

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Recovery Inc. (“Stellar”), asserting violations of the Telephone Consumer Protection Act, 47

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U.S.C. § 227 et seq.; violations of the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq.;

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and violations of California’s Rosenthal Fair Debt Collection Practices Act, Cal. Civ. Code 1788

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et seq. Compl., ECF 1. Garcia and Stellar thereafter reached settlement with respect to Garcia’s

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individual claims. Settlement Agreement, Exh. A to Smith Decl., ECF 32-1. No motion for class

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certification was filed, and no class was certified in this case.

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Under the Settlement Agreement, Stellar was to make three payments to Garcia, the first

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on April 10, 2017, the second on May 10, 2017, and the third on June 10, 2017. Smith Decl. ¶ 4

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and Exh. A., ECF 32-1. On April 28, 2017, Garcia filed the present motion to enforce the

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Settlement Agreement, asserting that Stellar had not made the first payment. Motion, ECF 32.

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Garcia sought an order enforcing the Settlement Agreement and awarding attorneys’ fees and

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costs that Garcia incurred in bringing the motion to enforce. Id.

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By the date of the hearing on July 6, 2017, all three payments had been made. The first

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payment, which was due on April 10, 2017, was paid on May 1, 2017. Pratt Decl. ¶ 4, ECF 42-1.

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The second payment, which was due on May 10, 2017, was timely made on that date. Id. ¶ 5. The

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third payment, which was due on June 10, 2017, was made on June 28, 2017. Id. ¶ 6.

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Accordingly, the only issue left for the Court to resolve is Garcia’s request for attorneys’ fees and

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costs.

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“An agreement to settle a legal dispute is a contract and its enforceability is governed by

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familiar principles of contract law.” Jeff D. v. Andrus, 899 F.2d 753, 759 (9th Cir. 1989). “The

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construction and enforcement of settlement agreements are governed by principles of local law

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which apply to interpretation of contracts generally.” Id. “Under California Civil Code § 1717,

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the prevailing party in a dispute over a contract that specifically provides for fee awards shall be

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entitled to reasonable attorney’s fees as determined by the court.” Eksouzian v. Albanese, No. CV

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13-728 PSG (AJWX), 2015 WL 12765585, at *1 (C.D. Cal. Oct. 23, 2015).

United States District Court
Northern District of California

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The Settlement Agreement provides in relevant part as follows:

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If any installment payment is not timely received, Plaintiff’s attorneys shall provide
written notice of the delinquency to Defendant’s attorney via e-mail. In the event
Defendant’s delinquency is not cured within 5 business days following its
attorney’s receipt of notice, then Plaintiff shall be entitled to attorney’s fees and
costs relating to any effort to enforce the Agreement.

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Settlement Agreement ¶ 1, Exh. A to Smith Decl., ECF 32-1. Garcia presents evidence that her

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attorney provided email notification of delinquency to Stellar’s attorney on April 12, 2017.

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Emails, Exh. B to Smith Decl., ECF 32-1. Counsel corresponded by email regarding the

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delinquent payment through April 25, 2017, when Garcia’s counsel stated that he was preparing a

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motion to enforce settlement. Id. Garcia thereafter filed the present motion to enforce the

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Settlement Agreement. Accordingly, under the clear language of the contract and California law,

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Garcia is entitled to recover attorneys’ fees and costs incurred in litigating her motion to enforce.

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Stellar does not dispute that the email correspondence between the parties’ counsel

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satisfied the notice requirement set forth in the Settlement Agreement, or that the Settlement

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Agreement provides for recovery of attorneys’ fees and costs. Stellar instead appears to argue that

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because Garcia’s counsel was informed that Stellar had “cash flow challenges” and was trying to

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gather the monies owed Garcia, Garcia should have refrained from enforcing her rights to the full

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extent permitted under the Settlement Agreement and applicable law. Sur-Reply at 1, ECF 42. To

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the extent that Stellar seeks to be relieved from its contractual obligations under the Settlement
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Agreement on equitable grounds, it has cited no legal authority which would permit the Court to

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grant such relief even if it were so inclined.

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Accordingly, IT IS HEREBY ORDERED:

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(1)

Garcia’s motion to enforce the Settlement Agreement is GRANTED. While Stellar

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has transmitted all payments due, Garcia is entitled to recover attorneys’ fees and

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costs incurred in litigating her motion to enforce.

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(2)

costs that should be awarded;

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The parties SHALL meet and confer regarding the amount of attorneys’ fees and

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If the parties are unable to resolve the issue of attorneys’ fees and costs within
twenty-one days after the date of this order, Garcia may file a motion for attorneys’

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United States District Court
Northern District of California

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fees and costs, not to exceed five pages plus supporting documentation. Stellar

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may file a response, not to exceed five pages plus supporting documentation,

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within fourteen days after the filing of such motion. The matter thereafter will be

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submitted for disposition without further briefing or argument.

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Dated: July 27, 2017
______________________________________
BETH LABSON FREEMAN
United States District Judge

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