Karpinski v. Smitty's Bar, Inc.
Annotate this CaseKarpinski sued, alleging that Smitty’s Sausalito bar negligently allowed two intoxicated men to enter and remain in the bar, and that the men punched Karpinski in the head, causing serious injuries. After court-ordered mediation, Karpinski agreed to dismiss Smitty’s in exchange for $40,000. Karpinski moved for entry of judgment under Code of Civil Procedure 664.6. Smitty’s opposed the motion because liens had been imposed by the federal government, based on Medicare payments to Karpinski, and by the state, based on crime victim compensation payments. The court entered a default judgment against the individuals ($1,430,968.84) and granted enforcement of the settlement, reasoning that the agreement requires that Karpinski "negotiate, satisfy, and dispose of all liens," but does not state that he must do so before receiving payment, and requires Karpinski to hold Smitty’s, its attorneys, and insurer harmless with respect to lien claims. Regardless of concern over whether Karpinski will honor that obligation, there is a remedy if he does not. The court awarded Karpinski $2,200 in attorney fees. The court of appeal affirmed. That there are no guarantees does not alter the fact that Smitty’s agreed to pay Karpinski $40,000 in exchange for his release and promises to satisfy all liens.
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