HOLDINGS: -The trial court did not err in determining that appellants breached a settlement agreement. The trial court had insufficient evidence to determine appellants paid the settlement in full, and was within its discretion to defer resolution of that issue to a post-judgment evidentiary hearing. Appellants had ample opportunity to present evidence of timely payments, if such evidence existed. The only evidence appellant offered, however, demonstrated payments were purportedly made over a month past due; -However, the trial court erred in entering a stipulated judgment using $2.8 million as the total settlement amount. 700,000 of that total was an unenforceable penalty barred by Civ. Code, § 1671, because appellants only owed $2.1 million under the settlement agreement. The additional $700,000 constituted an unenforceable penalty.
Nakase Law Firm provide counsel on business law
Judgment reversed in part; matter remanded with directions.