Motion: Summary Judgment and/or Summary Adjudication.  Moving Party Plaintiff State Compensation Insurance Fund. Responding Party Defendant Lokesh Tantuwaya.

Ruling: State Compensation Ins. Fund’s Motion for Summary Judgment is GRANTED. Defendant’s Application to Seal Documents is GRANTED. Plaintiff’s Objections to Evidence are OVERRULED. The court did not consider evidence submitted with the Reply. Jay v. Mahaffey (2013) 218 Cal.App.4th 1522, 1537- 1538.

On 3/7/17, Plaintiff filed the First Amended Complaint for Breach of Written Contract. The parties had entered into a Settlement Agreement (Exhibit A) to settle a Racketeering lawsuit.  On 12/3/16, Defendant failed to pay as required under the Settlement Agreement. Defendant contends that he was excused from his performance, because the Plaintiff failed to keep the settlement confidential.

Pursuant to Code Civ. Proc., § 437c (p) (1), Plaintiff has meet its burden of proof to establish that there is no defense to a cause of action, because it proved each element of the cause of action entitling it to judgment on the cause of action for breach of contract. Defendant failed to meet his burden that a triable issue of one or more material facts exists as to the cause of action or a defense.

“[T]he elements of the cause of action are the existence of the contract, performance by the plaintiff or excuse for nonperformance, breach by the defendant and damages.” First Commercial Mortgage Co. v. Reece (2001) 89 Cal.App.4th 731, 745.  The only potential disputed issue is whether notifying the U.S. District Court of the fact of the settlement violated the confidentiality of the settlement.

As the U.S. District Court required, Plaintiff notified the court that the case was settled, but did not disclose the terms of the confidential settlement. The parties had agreed that the settlement agreement was not admissible and was not to be introduced in any proceeding. Paragraph 8 of the Settlement Agreement required that “The Parties agree to keep confidential and not disclose to any third party the terms and conditions of the Settlement Agreement . . .” (Exhibit 2).  Merely notifying the court that the case settled did not reveal the “terms and conditions” of the confidential settlement. Plaintiff did not breach the Settlement Agreement so that Defendant was excused from complying with it.

Moving party shall give notice.

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