Peralta v. CB Hospitality and Events, LLC

Background

The parties submitted a proposed settlement agreement for court review under the requirement that certain wage-and-hour settlements be fair and reasonable. The court approved the agreement on September 24, 2024, making its terms binding on the parties.

The agreement required the defendants to pay the plaintiffs $85,000. An initial payment of $20,000 was due within 30 days after approval. Three additional payments of $15,000 each were due over the following three months, and a final $20,000 payment was due within 30 days after the last $15,000 payment. The agreement made the defendants jointly and severally liable, meaning each defendant could be held responsible for the entire amount owed.

The agreement also required each defendant to sign a confession of judgment for $65,000, representing the amount remaining after the initial $20,000 payment.

Motion and Record

On May 2, 2025, the plaintiffs moved for entry of a $65,000 judgment based on the settlement agreement and the signed confessions of judgment. The defendants’ response was due May 16, 2025, but they did not respond.

The plaintiffs’ supporting evidence showed that the defendants made the initial $20,000 payment but did not make any of the additional required payments. Because the settlement had been approved on September 24, 2024, all payments were due by February 21, 2025.

Ruling

Judge Woods found that the defendants breached the settlement agreement by failing to pay the remaining $65,000. He directed the Clerk of Court to enter judgment for $65,000 in favor of Neptali Peralta and Maria Jovita Villanueva. CB Hospitality and Events, LLC, CB Hospitality and Events I, LLC, CB Hospitality Ventures Holdings Corp., and Chris Barrett were held jointly and severally liable for that amount.

The court also directed the Clerk of Court to terminate the motions pending at Docket Numbers 70 and 81.