Judge: Anne Hwang, Case: 22STCV13548, Date: 2024-11-06 Tentative Ruling

Case Number: 22STCV13548    Hearing Date: November 6, 2024    Dept: 32

PLEASE NOTE:   Parties are encouraged to meet and confer concerning this tentative ruling to determine if a resolution may be reached.  If the parties are unable to reach a resolution and a party intends to submit on this tentative ruling, the party must send an email to the Court at sscdept32@lacourt.org indicating that party’s intention to submit.  The email shall include the case number, date and time of the hearing, counsel’s contact information (if applicable), and the identity of the party submitting on this tentative ruling.  If the Court does not receive an email indicating the parties are submitting on this tentative ruling and there are no appearances at the hearing, the Court may place the motion off calendar or adopt the tentative ruling as the order of the Court.  If all parties do not submit on this tentative ruling, they should arrange to appear in-person or remotely.  Further, after the Court has posted/issued a tentative ruling, the Court has the inherent authority to prohibit the withdrawal of the subject motion and adopt the tentative ruling as the order of the Court. 

TENTATIVE RULING

The Court has reviewed the revised petition for approval of compromise for a person with a disability filed on October 16, 2024 by Petitioner Lillian Monica McFarland (Petitioner) on behalf of Claimant Taylor Swelstad, age 20. The Court denies the petition without prejudice for the following reasons:

As an initial matter, the Court notes that Petitioner only filed the proposed order, and not the entire petition and notice, as previously ordered. (Min. Order, 10/8/24.) Petitioner must re-file the petition and proposed order, each time it is denied.

Petitioner proposes to deposit the entire net settlement proceeds ($242,321.57) into a pooled SNT for the benefit of Claimant.

Petitioner must correct the following defects pertaining to the proposed trust instrument: 

·        When seeking approval of a special needs trust (SNT), notice of the hearing and service of the petition must be made upon three state agencies including the Dept. of Mental Health, Dept. of Developmental Services, and Dept. of Health Care Services.  (Probate Code sections 3602(f), 3611(c).). Again, here, there is no proof of service of the petition upon the state agencies and notice is incomplete. The agencies require 15 days’ notice by mail. This defect has been repeatedly identified by the Court. (Min. Order, 8/22/24, 10/8/24.)

If the petition is approved, the Court will require $275,000 bond submitted by trustee to this department.  

The following deficiencies are present in the Proposed Order (MC-351): 

The proposed order properly contains language requiring the filing of the PRO 044 but does not state a due date.  (Order pdf at p. 7, section K.) The Court suggests February 4, 2025 or language that the PRO 044 must be filed in 60 days.

The proposed order states only that the first accounting shall be due in 14 months, without setting a due date.  (Order pdf at p. 6, section G.)  Language is needed stating that the first accounting is due in 12 months and must be filed by a stated 14 month actual calendar date. 

The proposed order states an OSC at p. 7, section L. The Court suggests February 4, 2025 as an OSC date.

Accordingly, the Court continues the hearing to ­­­December 4, 2024 at 1:30 p.m. in Department 32 of the Spring Street Courthouse. A revised petition must be filed and served by November 15, 2024. 

Petitioner shall give notice and file a proof of service of such.