Judge: Alison Mackenzie, Case: 23STCV15596, Date: 2024-09-04 Tentative Ruling



Case Number: 23STCV15596    Hearing Date: September 4, 2024    Dept: 55

NATURE OF PROCEEDINGS:  Petition of Petitioner Teresa Pelico for Approval of Compromise of Claim or Action or Disposition of Proceedings of Judgment for Minor or Person with a Disability [regarding Pedro Jacobo Paxtor-Pelico]. Petition of Petitioner Teresa Pelico for Approval of Compromise of Claim or Action or Disposition of Proceedings of Judgment for Minor or Person with a Disability [regarding Emelin Raquel Paxtor-Pelico].

 

BACKGROUND

Plaintiffs, who were tenants of an apartment at 2845 San Marino St. Los Angeles, CA 90006, filed suit against the apartment building owners and managers, Defendants RCG 2845 SAN MARINO LLC and RCG SOCAL LLC, for alleged habitability issues. Plaintiffs consist of two separate families occupying respective units; two adults in one unit, three adults and two minor children in the other. 

Petitioner, Teresa Pelico, who is one of the adult Plaintiffs and the mother and guardian ad litem of the two minor Plaintiffs, filed petitions requesting Court approval of settlements of two minor claimants who, as Defendants’ tenants, allegedly suffered from uninhabitable conditions and emotional distress. 

LEGAL STANDARD

Courts must decide whether to approve a compromise by determining if petitioners, such as guardians, are acting in the best interests of minors. E.g., Code Civ. Proc., § 372, subd. (a); Scruton v. Korean Air Lines Co. (1995) 39 Cal.App.4th 1596, 1603-1607. “[T]he protective role the court generally assumes in cases involving minors, [is] a role to assure that whatever is done is in the minor's best interests….  [I]ts primary concern is whether the compromise is sufficient to provide for the minor's injuries, care and treatment.”  Goldberg v. Superior Court (1994) 23 Cal.App.4th 1378, 1382. Judicial discretion in approving petitions for minors’ compromises, and ordering distributions, and local court policies, must be applied in the best interests of minors, in a case-by-case method, tailored to the circumstances.  Christensen v. Superior Court (1987) 193 Cal.App.3d 139, 142-144.

A petition for court approval of a compromise under Code of Civil Procedure section 372 must comply with California Rules of Court rules 7.950, 7.951, and 7.952. See Cal. Rules of Court, rule 3.1384(a). Some of the Probate Code and the Code of Civil Procedure apply to compromises as to minors’ claims. See Cal. Rules of Court, rule 7.950. In large part, the Local Rules incorporate by reference the California Rules of Court and statutory provisions. See Super. Ct. LA County, Local Rules, rule 4.115 et seq.

A payment of attorneys’ fees on the minor’s behalf must be approved as being reasonable by the court. Niles v. City of San Rafael (1974) 42 Cal.App.3d 230, 244. “The trial court itself must develop and resolve any counterarguments on behalf of the minor, lest the attorney receive an excessive award of fees.” Gonzalez v. Chen (2011) 197 Cal.App.4th 881, 887.

 

ANALYSIS

In advocating settlement approvals, the Petitioner represents that she made a careful and diligent inquiry and investigation into the facts and circumstances, the responsibility, and the claimants’ injuries.

Here, the Court finds that the Petitioner is acting in the best interests of the minors in proposing to obtain approval for the settlement and minors’ compromises.

The Court finds that the proposed settlement amounts of $2,500.00 for each minor ($18,000 per adult), have been typical among the many like cases seen in this court, as to minors who lived in uninhabitable conditions, fully recovered, and required no medical treatment.

Further, attorney’s fees of $650 per claimant, reflecting 25 percent of the recovery and pursuant to a written attorney-client fee agreement, are reasonable.[1] Additionally, expenses advanced by claimants’ attorney, consisting of an $87.09 filing fee and an $85.58 service fee, are reasonable and would leave a balance of $1,702.33.  Those sums are also standard and reasonable as to like settlements.

Petitioner seeks to have the funds paid to her, as the claimants’ mother, under Probate Code section 3611 subdivision (e), which allows such funds to “be paid or delivered to a parent of the minor, without bond, upon the terms and under the conditions specified in Article 1 (commencing with Section 3400) of Chapter 2.”

Probate Code section 3401 allows for a parent to receive money belonging to their minor children, for the purpose of holding the money in trust until the child reaches adulthood.  However, that provision only applies when “(1) The total estate of the minor, including the money and other property to be paid or delivered to the parent, does not exceed five thousand dollars ($5,000) in value” and (2) “The parent to whom the money or other property is to be paid or delivered gives the person making the payment or delivery written assurance, verified by the oath of such parent, that the total estate of the minor, including the money or other property to be paid or delivered to the parent, does not exceed five thousand dollars ($5,000) in value.”  Prob. Code § 3401, subd. (c).  

The petitions are supported by a declaration of Teresa Pelico, in which she affirms under oath that each minor’s total estate does not exceed $5,000 and that she will hold the funds in trust for each minor until the minor reaches majority.

This declaration is sufficient to satisfy the requirements of Probate Code section 3401, subdivision (c).

CONCLUSION

Therefore, both petitions are granted as prayed. The Court will sign and file proposed orders lodged by the petitioner.



[1] This is a reduced rate from the 40 percent authorized by the written fee agreement.