Filed an answer and received "notice of conditional settlement/stipulated judgement..

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I am in California. This is regarding a debt with Cap. 1. I recieved a summons a few months back from an attorneys office "Legal Recovery Law Offices". Breech of contract according to the summons was 1/5/04. I have only heard from these people once or twice probably about a year ago or more. Then I received the summons a few months ago. I filed my answer with the court. About 10 days after I filed my answer, I received a "Request for Entry of Default" from the same lawyers office. I contacted the courts and they said nothing has been filed with them, and as of two days ago, no request has been filed still.

I got back into town a few days ago and I now have a "Notice of Conditional Settlement; Stipulated Judgement and Order for Dismissal" They have sent it to me in an effort to resolve this matter without furthere expense to either side. If I dont agree to enter into a stipulation on this matter, the law office intends to proceed in seeking judgement against me and if a judgement is entered against me, it will adversely effect my credit history.

I have about 4 more days according to the date in this document to respond.

Here is what it says:

It is stipulated between the law office and myself that this case is settled in accordance with rule 225© of the california rules court. Further stipulated that the court dismiss this case WITHOUT prejudice reserving the courts jurisdiction and power to enter judgement upon showing default of the terms of this stipulation:

Notice of Conditional Settlement

Basically if I dont agree or get behind on the payment plan they have stated, the court my enter judgement without notice to the other parties. Upon completion of the settlement arrangement, the court shall dismiss this action WITH predjudice.

Statute of Limitations

The parties further agree to and do waive all statutes of limitation and other legal impediment or bar to this court taking jurisdictioon again of this case under the circumstances set forth above.

Stipulated Balance and Method of Repayment

Says that my first payment is due next week and states the payment plan they have came up with with hearing costs, att. fees, interest and when the monthly payments will be due. Also says that I will forward a check to the courts to pay for the filing of this stipulation. All checks made to C1 and mailed to the lawyers office.

Full Payment of Stipulated Judgement

Full payment is conditioned upon payment and completion of all above payments until the stipulated judgement is settled in full. Upon completion the court should consider the matter closed.

Default in Repayment Terms and Amount of Judgement

Basically if I fail to make any of the above payments, they will send me notification and I have 3 days to make that payement from when I receive notice. If I still fail to make payment, the court shall set aside dismissall without prejudice, resume jurisdiction, and judgement will be entered in favor of plaintiff.

Stay on Entry of Judgement

the parties agree thqat entry of judgement shall be stayed and no judgement shall be entered provided that all payments are made in the manner provided.

Waiver of Right to Trial or Further Contest

Defendant understands that in signing this document they argree they owe the money indicated herein and they are waiving:

a)notice of any further proceedings necessary for entry of judgement. In addition, plaintiff shall be entitled to immediate execution of said judgement, without further notice to defaulting defendant.

B) their right to trial or further contest

c) their right to contest service or jurisdiction.

It also states that if I want to resolve this matter by entering into stipulation to contact there office and that the first payment is due 11/27/07.

I have never recieved one of these before, so I am not sure what I need to do next or how to go about it. From what I am understanding, the law office is basically giving me one last chance before they take me to court, is that correct?

In some parts of the stipulation it states WITH prejudice and others WITHOUT prejudice. Why would it state two different things?

Why would they send me a request for entry of default if they never filed it with the courts?

Any advice on what I need to do?

If the breech was on 1/5/04, isnt the SOL 4 years? which would make it about 5 weeks from being past SOL?

Any help/advice is appreciated. In the mean time I am going to search around this site some more.

Thanks in advance.

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You filed an Answer so there must be some triable disputed facts in their claim.

The terms of this dicuyment can be summarized in one sentence: "You confess judgment against yourself fo whatever we say you owe, with no appeal rights and no SOL to interfere with our collection."

This is a blatant attempt to get you to agree you owe everything they are suing you over, and you lost nothing by sending it back to them unsigned and saying "see you in Court".

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within my answer I stated that the last time this debt was tried to be collected on, unauthorized withdrawls and third party disclosures were made by C1 parties. I had never received proof of written agreement, no proof of the money they say I owe, is the actual amount I owe. Since the third party disclosures and unauthorized withdrawls, no other effort other than this summons has been made.

So if I dont sign this and send it back, it wont go into automatic default? Were the request for default and this stipulation I received just to scare me into payment?

I am kinda new to this, and just found this site, so hopefully I can get headed in the right direction.

thanks for all the help.

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Automatic default? The only way they get a default judgement is if a court date is scheduled and you don't show your face in court. They want you to agree to their terms without having to bother going to court and proving anything. Why would you or anyone agree to that? If they never provided you with any validation, let them take you to court where they will have to prove their claim. Sometimes court is the best place and only place to truly get things resolved.

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Clyde, if these guys are who I think, be very very careful.

I think this is a law firm based in San Diego. If so, you'll see them filing tons of paperwork with the court and then request to dismiss the same, a couple days later . It's a huge smoke screen, it will make you think that they are messed up big time and will take your eyes off them.( I have checked the court papers on several cases and this seems to be their favorit MO).

Be aware that they will use a "Rent-a-lawyer' service, after filing for a default Judgment via fax with the court, change the original court date and before you show up, all is done!

I had a run up wit these guys. They had nothing, had filled a fake proof of service, never served me and I only found out a year after they obtained a judgment.

Keep your eys open and don't let them pull a fast one on you.


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