If parties to pending litigation stipulate, in
a writing signed by the parties outside the presence of the court
or orally before the court, for settlement of the case, or part
thereof, the court, upon motion, may enter judgment pursuant to
the terms of the settlement. If requested by the parties, the
court may retain jurisdiction over the parties to enforce the
settlement until performance in full of the terms of the settlement.
(a) Notwithstanding Section 664.6, if parties
to a pending construction defect action stipulate personally or,
where a party's contribution is paid on its behalf pursuant to
a policy of insurance, the parties stipulate through their respective
counsel, in a writing signed by the parties outside the presence
of the court or orally before the court, for settlement of the
case, or part thereof, the court, upon motion, may enter judgment
pursuant to the terms of the settlement. If requested by the parties,
the court may retain jurisdiction over the parties to enforce
the settlement until performance in full of the terms of the settlement.
(b) It is the intent of the Legislature that
this section modify the holding of Levy v. Superior Court (1995),
10 Cal. 4th 578, regarding the authority of counsel in a construction
defect action to bind a party to a settlement.
(c) For purposes of this section, "construction
defect action" shall mean any civil action that seeks monetary
recovery against a developer, builder, design professional, general
contractor, material supplier, or subcontractor of any residential
dwelling based upon a claim for alleged defects in the design
or construction of the residential dwelling unit.