Effective January 1, 2025, amendments to the California Code of Civil Procedure (CCP) § 664.6 aim to enhance the settlement enforcement process and clarify the court's authority in civil disputes. These changes are expected to encourage settlements, ensure compliance with agreed terms, and improve procedural efficiency. Attorneys must familiarize themselves with these updates to effectively navigate the litigation process and safeguard their clients' interests.
One of the key changes to CCP 664.6 is the court's ability to dismiss a case without prejudice while retaining jurisdiction to enforce the settlement agreement until all terms are fulfilled. In the past, the request for the court to retain jurisdiction needed to be done explicitly, either through filing a stipulation and proposed order with a copy of the settlement agreement and request for the trial court retain jurisdiction under Section 664.6, or the filing of a stipulation and proposed order signed by the parties noting the settlement and asking that the trial court retain jurisdiction under Section 664.6. This process meant that some parties failed to formally ask for the trial court to retain jurisdiction beyond agreeing to this inside of the settlement agreement itself.
The new Request for Dismissal form includes a checkbox that allows the parties to request the court to retain jurisdiction over the settlement under Section 664.6. This eliminates the need for parties to formally request that the court retain jurisdiction, ensures that settlements can be enforced, and reduces the paperwork needed to be filed with the court.
Another significant amendment concerns the validity of signatories for the new Request for Dismissal form. The updated Request for Dismissal Form (CIV-110) includes a checkbox to request the trial court to retain jurisdiction. When the parties request that the court retain jurisdiction to enforce a settlement agreement, the matter must be dismissed without prejudice. When a matter is dismissed with prejudice, the court loses jurisdiction.
The form itself can be signed by the party, their attorney, or an authorized agent of an insurer (with written authorization). However, attorneys must exercise caution: signing agreements of any kind without explicit authorization may result in professional discipline unless good cause can be demonstrated.
Additionally, the amendments address filing fees and post-judgment motions. Parties who have already paid a first appearance fee will not be charged again for filings related to the settlement after judgment or dismissal. This adjustment reduces financial burdens and simplifies post-settlement procedures, making the process more accessible and efficient for all parties involved.
In summary, the amendments to CCP 664.6 are designed to make settlement agreements more enforceable and procedural requirements more transparent. Attorneys should take proactive steps to adapt to these changes, including ensuring proper authorization before signing agreements, familiarizing themselves with the updated rules for retaining court jurisdiction, and staying informed about the Judicial Council's updates to forms and Rules of Court. Additionally, in matters where the court is asked to retain jurisdiction, counsel should contemplate whether to require a dismissal with prejudice to be filed once the settlement obligations have been completed. By doing so, they can effectively represent their clients and navigate the evolving legal landscape with confidence.
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