California Rules of Court CRC Rule 3.1385. Duty to notify court and others of settlement of entire case

Rule 3.1385. Duty to notify court and others of settlement of entire case

(a) Notice of settlement

(1)  Court and other persons to be notified

If an entire case is settled or otherwise disposed of, each plaintiff or other party seeking affirmative relief must immediately file written notice of the settlement or other disposition with the court and serve the notice on all parties and any arbitrator or other court-connected alternative dispute resolution (ADR) neutral involved in the case. Each plaintiff or other party seeking affirmative relief must also immediately give oral notice to all of the above if a hearing, conference, or trial is scheduled to take place within 10 days.

(2)  Compensation for failure to provide notice

If the plaintiff or other party seeking affirmative relief does not notify an arbitrator or other court-connected ADR neutral involved in the case of a settlement at least 2 days before the scheduled hearing or session with that arbitrator or neutral, the court may order the party to compensate the arbitrator or other neutral for the scheduled hearing time. The amount of compensation ordered by the court must not exceed the maximum amount of compensation the arbitrator would be entitled to receive for service as an arbitrator under Code of Civil Procedure section 1141.18(b) or that the neutral would have been entitled to receive for service as a neutral at the scheduled hearing or session.

(Subd (a) amended effective January 1, 2007; previously amended effective January 1, 1989, July 1, 2001, July 1, 2002, January 1, 2004, and January 1, 2006.)

(b) Dismissal of case

Except as provided in (c) or (d), each plaintiff or other party seeking affirmative relief must serve and file a request for dismissal of the entire case within 45 days after the date of settlement of the case. If the plaintiff or other party required to serve and file the request for dismissal does not do so, the court must dismiss the entire case 45 days after it receives notice of settlement unless good cause is shown why the case should not be dismissed.

(Subd (b) amended effective January 1, 2009; adopted effective January 1, 1989; previously amended effective July 1, 2002, January 1, 2004, and January 1, 2006.)

(c) Conditional settlement

(1)  Notice

If the settlement agreement conditions dismissal of the entire case on the satisfactory completion of specified terms that are not to be performed within 45 days of the settlement, including payment in installment payments, the notice of conditional settlement served and filed by each plaintiff or other party seeking affirmative relief must specify the date by which the dismissal is to be filed.

(2)  Dismissal

If the plaintiff or other party required to serve and file a request for dismissal within 45 days after the dismissal date specified in the notice does not do so, the court must dismiss the entire case unless good cause is shown why the case should not be dismissed.

(3)  Hearings vacated

(A)  Except as provided in (B), on the filing of the notice of conditional settlement, the court must vacate all hearings and other proceedings requiring the appearance of a party and may not set any hearing or other proceeding requiring the appearance of a party earlier than 45 days after the dismissal date specified in the notice, unless requested by a party.

(B)  The court need not vacate a hearing on an order to show cause or other proceeding relating to sanctions, or for determination of good faith settlement at the request of a party under Code of Civil Procedure section 877.6.

(4)  Case disposition time

Under standard 2.2(n)(1)(A), the filing of a notice of conditional settlement removes the case from the computation of time used to determine case disposition time.

(Subd (c) amended effective July 1, 2013; adopted effective January 1, 1989; previously amended effective July 1, 2002, January 1, 2004, and January 1, 2006.)

(d) Compromise of claims of a minor or disabled person

If the settlement of the case involves the compromise of the claim of a minor or person with a disability, the court must not hold an order to show cause hearing under (b) before the court has held a hearing to approve the settlement, provided the parties have filed appropriate papers to seek court approval of the settlement.

(Subd (d) adopted effective January 1, 2009.)

(e) Request for additional time to complete settlement

If a party who has served and filed a notice of settlement under (a) determines that the case cannot be dismissed within the prescribed 45 days, that party must serve and file a notice and a supporting declaration advising the court of that party’s inability to dismiss the case within the prescribed time, showing good cause for its inability to do so, and proposing an alternative date for dismissal. The notice and a supporting declaration must be served and filed at least 5 court days before the time for requesting dismissal has elapsed. If good cause is shown, the court must continue the matter to allow additional time to complete the settlement. The court may take such other actions as may be appropriate for the proper management and disposition of the case.

(Subd (e) adopted effective January 1, 2009.)

Rule 3.1385 amended effective July 1, 2013; adopted as rule 225 effective January 1, 1985; previously amended and renumbered effective January 1, 2007; previously amended effective January 1, 1989, January 1, 1992, July 1, 2001, July 1, 2002, January 1, 2004, January 1, 2006, and January 1, 2009.