IS A COURT MAKING A JUDICIAL DETERMINATION OF FINDING OF FAULT WHEN THE PARTIES SUBMIT A STIPULATED JUDGMENT?

IS A COURT MAKING A JUDICIAL DETERMINATION OF FINDING OF FAULT WHEN THE PARTIES SUBMIT A STIPULATED JUDGMENT PURSUANT TO CODE OF CIVIL PROCEDURE SECTION 664.6 THAT INCLUDES THE LANGUAGE IN THE STIPULATION THAT THE DEFENDANT IS NOT MAKING AN ADMISSION OF FAULT?

Assume hypothetically that a Plaintiff and Defendant enter into a Stipulated Judgment pursuant to California Code of Civil Procedure Section 664.6 that contains language that states “The Parties have stipulated and consented to an entry of Judgment without Defendant providing an admission of liability.” The court then enters a Final Judgment.

As a general rule, a judgment provides a determination of fault against a party. However, C.C.P. Section 664.6 states in pertinent part as follows: “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.” (Emphasis Added.)

Under California Civil Code Section 1636, a contract must be interpreted as to give effect to the mutual intention of the parties as it existed at the time of contracting so far as it is ascertainable and lawful. C.C.P. Section 664.6 is an agreement to settle the case and for the court to enter judgment pursuant to the terms of that settlement. “The California statute governing entry of judgment pursuant to terms of stipulation for settlement creates a summary, expedited procedure to enforce settlement agreements when certain requirements that decrease the likelihood of misunderstandings are met.” (Inamed Corp. v. Kuzmak (C.D.Cal 2002) 275 F. Supp.2d 1100, 1119.)

Therefore, this begs the question whether a stipulated judgment and a trial judgment have any legal distinction as they are both final judgments. Under this scenario, I submit that it illustrates the legal distinction between a stipulated judgment and trial judgment. In the instant case, the parties have entered into a stipulated judgment in accordance with C.C.P. Section 664.6 which requires the court to enter the Judgment solely based upon the terms entered into by way of the settlement. Here the Court was asked to enter Judgment without a finding of fault. On the other hand, a trial judgment would have required, absent a stipulation to the contrary, the trier of fact to have made a factual determination of finding of fault. In light of this distinction, it is my opinion that the entering of a stipulated judgment pursuant to C.C.P. Section 664.6 is not synonymous to a judicial determination of fault if the parties stipulated that the judgment be entered without a finding of fault.

C.C.P. Section 664.6 continues to be a valuable tool in California in enforcing agreements into a stipulated judgment pursuant to the intent of the parties