(PC) Holston v. Massetti

• Court: District Court, E.D. California
• Decided: January 6, 2025
• Docket: 2:23-cv-00017
• Status: Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 THERON KENNETH HOLSTON, No. 2:23-cv-0017 AC P 12 Plaintiff, 13 v. ORDER AND FINDINGS AND RECOMMENDATIONS 14 DEBBIE MASSETTI, et al.,

15 Defendants. 16 17 On October 15, 2024, defendants filed a notice of settlement, advising that the parties had 18 reached an agreement resolving this case. ECF No. 77. The parties were then ordered to file 19 dispositional documents or a status report regarding the filing of such documents within thirty 20 days. ECF No. 78. On November 15, 2024, defendants filed a status report stating that under the 21 terms of the agreement, plaintiff was to have filed a dismissal of this case by October 14, 2024, 22 but that he was refusing to do so because he believed the settlement check was fake because his 23 bank put a risk hold on the check. ECF No. 79 at 2-3. They requested that the case be dismissed 24 with prejudice. Id. at 3. Defendants were given ten days to file a motion to enforce the 25 settlement agreement that was accompanied by a copy of the executed agreement and any 26 documentary evidence necessary to show they had fulfilled their obligations under the agreement. 27 ECF No. 81. On November 26, 2024, defendants filed a motion to enforce the settlement 28 agreement (ECF No. 82), to which plaintiff has not responded. 1 “It is well settled that a district court has the equitable power to enforce summarily an 2 agreement to settle a case pending before it.” Callie v. Near, 829 F.2d 888, 890 (9th Cir. 1987) 3 (citations omitted). However, that power extends to complete settlement agreements only, and 4 the court must hold an evidentiary hearing where material facts regarding the existence or terms 5 of the agreement are in dispute. Id. (citations omitted). The moving party has the burden of 6 demonstrating that the parties formed a legally enforceable settlement agreement. In re 7 Andreyev, 313 B.R. 302, 305 (B.A.P. 9th Cir. 2004) (citing 15A Am. Jur. 2d Compromise and 8 Settlement § 57 (2000)). 9 Defendants have provided a copy of the settlement agreement signed by plaintiff on 10 September 14, 2024. ECF No. 82-1. Although the copy of the agreement provided is not fully 11 executed, defendants state that they executed the agreement on October 2, 2024, and provided a 12 copy to plaintiff (ECF No. 82 at 2), and plaintiff has not disputed this representation. The 13 agreement provides that plaintiff was to file a request for dismissal of defendants with prejudice 14 within ten days of the written agreement being fully executed. ECF No. 82-1 at 7. Defendants 15 were then required to issue plaintiff a check for $7,500 within thirty days of his dismissal of 16 defendants and execution and return of the written agreement and a current W-9. Id. The 17 undisputed evidence before the court shows that defendants have already issued a check to 18 plaintiff, which he proceeded to deposit, and which cleared the bank on November 5, 2024. ECF 19 Nos. 82-2, 82-3, 82-5. When counsel contacted plaintiff about filing his dismissal, plaintiff 20 refused, stating that the check was fake because his bank had put a risk hold on the funds. ECF 21 No. 82-8 at 1. After counsel advised plaintiff that they had no control over temporary holds 22 placed by the bank, plaintiff responded that the bank advised him a second hold would expire the 23 following day and that if his funds were not available then that he was “opting out of said 24 agreement.” Id. 25 Defendants have met their burden of showing that a legally enforceable settlement 26 agreement exists and that they have fulfilled their obligations under the agreement. Plaintiff has 27 not filed any opposition to the motion to enforce the settlement agreement or produced any 28 evidence to support his claim that the check was fraudulent. Accordingly, there are no disputed 1 | material facts warranting an evidentiary hearing. 2 There 1s nothing unusual about a bank placing a temporary hold on a check for a large 3 || sum of money, and nothing before the court supports plaintiff's refusal to fulfill his obligation 4 || under the settlement agreement just because his settlement funds were subject to such a hold. His 5 || refusal was particularly unjustified given the agreement provides that defendants were not 6 || required to pay plaintiff until after he had filed his dismissal. For these reasons, the settlement 7 || agreement should be enforced, and this case dismissed with prejudice. 8 Accordingly, IT IS HEREBY ORDERED that the Clerk of the Court shall randomly 9 || assign a United States District Judge to this action. 10 IT IS FURTHER RECOMMENDED that defendants’ motion to enforce the settlement 11 || agreement (ECF No. 82) be GRANTED and this case be dismissed with prejudice. 12 These findings and recommendations are submitted to the United States District Judge 13 || assigned to the case, pursuant to the provisions of 28 U.S.C. § 636(b)(1). Within fourteen days 14 | after being served with these findings and recommendations, any party may file written 15 || objections with the court and serve a copy on all parties. Such a document should be captioned 16 || “Objections to Magistrate Judge’s Findings and Recommendations.” Any response to the 17 || objections shall be served and filed within fourteen days after service of the objections. The 18 || parties are advised that failure to file objections within the specified time may waive the right to 19 || appeal the District Court’s order. Martinez v. YIst, 951 F.2d 1153 (9th Cir. 1991). 20 | DATED: January 6, 2025 ' □

UNITED STATES MAGISTRATE JUDGE 23 24 25 26 27 28