Kelly v. The Los Angles Transition Center CA2/7

Filed 6/15/15 Kelly v. The Los Angles Transition Center CA2/7 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION SEVEN

DOUGLAS B. KELLEY, et al. B250313

Plaintiffs and Respondents, (Los Angeles County Super. Ct. No. BC435056) v.

THE LOS ANGELES TRANSITION CENTER, et al.

Defendants and Appellants.

APPEAL from a judgment in the Superior Court of Los Angeles County, Mary Strobel, Judge. Affirmed. Law Office of Philip Deitch and Philip Deitch, for Defendants and Appellants. Christman, Kelley and Clarke, Matthew M. Clarke and Matthew N. Mong, for Plaintiffs and Respondents.

__________________________

In this appeal from a judgment enforcing a settlement agreement, defendants and appellants The Los Angeles Transition Center, Inc., and its related entities challenge the determination of the trial court that entry of judgment was appropriate. Finding that substantial evidence supports the factual findings of the trial court, we affirm.

FACTUAL AND PROCEDURE BACKGROUND Respondents Douglas B. Kelley, The Kelley Company, LLC, and Douglas Kelley as Trustee of The Doug and Kathy Kelley Family Trust (“Kelley”) were involved in litigation beginning in 2010 with The Los Angeles Transition Center, Inc., Henry B. Zachary, and Transitional Ministry of Christ, Inc. DBA Helping Hands Counseling Clinic (“LATC”). In February, 2011, all parties executed a written settlement agreement to resolve the litigation. In return for a dismissal of all litigation with prejudice, and releases, LATC agreed to the following, along with other non-financial terms: 1. To pay Kelley $25,000, in $5000 monthly increments, with the last payment due by June 1, 2011; 2. To transfer three motor vehicles, the first of which was a Lincoln Continental to be transferred within 7 days, and the others to be designated at a later time; and 3. To make an additional payment of $350,000, interest free, within three years, with credit to be given against that sum for monies received by Kelley for referrals to its treatment programs by LATC. The settlement was expressly made enforceable pursuant to Code of Civil Procedure section 664.6.1 In October 2012, Kelley filed a motion to enforce the settlement and enter judgment, asserting that LATC had paid only $9000, had made no payments since May 2011, and had neither made referrals nor transferred title to any vehicles. LATC opposed the motion, asserting that the terms of the settlement were severable, and that Kelley had breached the settlement agreement by failing to accept clients who were unable to pay at least $500 per month for services. LATC also included the declaration of Michael Mendoza, a court liaison responsible for making drug-alcohol referrals, who stated that, on Zachary’s recommendation, he had approved the Kelley programs for referral in early