Judge: Christian R. Gullon, Case: 22PSCV00682, Date: 2023-08-15 Tentative Ruling
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Case Number: 22PSCV00682 Hearing Date: October 10, 2023 Dept: O
Tentative Ruling
Plaintiff’s
PETITION FOR APPROVAL OF COMPROMISE OF CLAIM OR ACTION OR DISPOSITION OF
PROCEEDS OF JUDGMENT FOR PERSON WITH A DISABILITY is DENIED without
prejudice because (1) attorney fees are unreasonable and (2) medical liens are
TBD.
Background
This case
arises from alleged violations of the Elder Abuse and Dependent Adult Civil
Protection Act (“EADACPA”). Plaintiff MARK MOORE, by and through his Guardian
ad Litem, AMANDA REAL alleges the following against INLAND VALLEY PARTNERS LLC
dba INLAND VALLEY CARE AND REHABILITATION CENTER (“Defendant”): In 2017, at age
forty-nine, Mark Moore was admitted to Defendant’s facility “for
rehabilitation, care, treatment, and supervision in light of his then-existing
mental and physical condition.” As a result of Defendant’s failures, Plaintiff
alleges that, amongst other problems, he developed pressure injuries (Stage IV
sacrococcyx pressure injury); suffered from severe dehydration, and was
intentionally overmedicated.
On July 7,
2022, Plaintiff filed suit.
On August 19,
2022, Defendant filed the instant Motion.
On November
16, 2022, Plaintiff filed an Opposition.
On February
10, 2023, Defendant filed its Reply.
On February
21, 2023, the court heard oral argument on the matter and asked for
supplemental briefing on the issue.
On May 9,
2023, the court issued its final ruling, denying the motion without prejudice.
On May 24,
2023, Defendant filed the amended petition, which the court granted on August
15, 2023.
On September
12, 2023, Plaintiff filed a Notice of Settlement.
On September
15, 2023, Plaintiff filed the instant application for petition to approve
compromise of disputed claim.
On September
19, 2023, Plaintiff filed a motion to seal confidential information, which the
court granted the same day.
Legal
Standard
A petition for court approval of a compromise
of a disabled person’s claim under CCP section 372 subdivision (a)(1) must be
verified by the petitioner and contain a full disclosure of all information
having any bearing on the reasonableness of the compromise. (See Cal. Rules of
Court Rule 7.950; see also Barnes v. Western Heritage Ins. Co. (2013)
217 Cal.App.4th 249, 256, fn. 4.) The petition must be prepared on a fully
completed Judicial Council form MC-350. (Cal. Rules of Court Rule 7.950;
7.101(b)(3).)
Discussion
After a
review of the petition, the court denies it for two reasons: (i) attorney fees
are unreasonable and (ii) medical liens are TBD.
1. Attorney Fees
First,
mindful that the figures regarding attorney fees are sealed, the court will not
mention the exact amount of the settlement in this ruling. As noted by
Plaintiff in his declaration, pursuant to California Rules of Court, rule
7.955(b), a court may consider, inter alia, the following factors in approving
attorney fees: (a) The novelty and difficulty of the questions involved, (b) the
skill required to perform the legal services properly and (c) the time and labor
required.
Here, while
Counsel significant skill and experience in this area of the law (as evidenced
by his recovery of over $20 million in similar cases), a contingency fee of forty
percent is unreasonable because there was (i) one motion (motion to
compel arbitration), (ii) no discovery[1]
and (iii) strong facts supporting a dependent adult case (i.e., making case
less difficult).[2]
Moreover, Counsel Yeroushalmi’s declaration cites—without reference to reports,
articles, or other sources —that that attorneys representing plaintiffs in
similar abuse and neglect litigation use the same contingency fee agreement of
40-45%. (Yeroushalmi Decl., p. 3, p. 40 of 60 of PDF.)
Therefore, considering the totality of the
circumstances, the court finds a 40% contingency fee to be unreasonable; the
court reduces the fee to 30% of the net recovery.[3]
2. Liens
Second, the
issue of medical liens is denoted as “TBD” in the petition.
Here, the
amount of the three medical liens is required under California Rules of Court
Rule 7.950 because it constitutes “information
bearing upon the reasonableness of the compromise.” For example, if the medical
lien is for the entire amount of Plaintiff’s recovery, then the
compromise is not reasonable because Plaintiff gets nothing in recovery.
Therefore, though the court
acknowledges that Plaintiff’s Counsel is and continues to be in the process of
negotiating with Medi-Cal so as to increase Plaintiff’s net recovery (Decl., p.
3), the application is denied until a final number is determined.
Conclusion
Based on the foregoing, the application is denied without prejudice.
[1] There are no formal
discovery motions in the docket. To the extent that Plaintiff may argue
substantial discovery was undertaken it is unclear as to the scope and extent of
the discovery (i.e., number of discovery propounded, number of discovery
responded to, whether depositions took place, etc). (See Yeroushalmi Decl., p.
5 [“[The] [o]ffice undertook considerable research preparing this case for
discovery following the resolution of Defendant’s motion, which included preparing
written discovery as well as identifying several individuals for
depositions, multiple notices of depositions of which were served
between February 2023 and May 2023.”], italics added.)
[2] Strong facts being
allegations that Plaintiff suffered from severe dehydration (as evidenced by
abnormal creatine levels), Defendant failed to follow physician orders, and
allegations that Defendant overmedicated Plaintiff. (Petition p. 13 of 60 of
PDF.)
[3] Absent a novel and
difficult case, this court generally awards no more than 30 percent in a
contingency fee arrangement.