Judge Gregory Keosian, Case Number: 19STCV31123, Date: 2023-08-09 Tentative Ruling

Judge: Gregory Keosian, Case: 19STCV31123, Date: 2023-08-09 Tentative Ruling

Case Number: 19STCV31123 Hearing Date: December 4, 2023 Dept: 61

Plaintiff Cindy Lucrecia Gonzalez’s Petition to Approve Minor’s Compromise for Plaintiff Arlene Gonzalez-Vargas is GRANTED..

I. PETITION FOR MINOR’S COMPROMISE

Minors or people without legal capacity to make decisions must appear in court by a guardian, conservator of the estate, or guardian ad litem. (Code Civ. Proc. § 372, subd. (a)(1).) Such person appearing in court on behalf of the minor or person without capacity has the power to compromise the claims of the represented person, “with the approval of the court.” (Ibid.) The requirement of court approval exists “to protect the best interests of the minor.” (Pearson v. Superior Court (2012) 202 Cal.App.4th 1333, 1338.)

“A petition for court approval of a compromise of, or a covenant not to sue or enforce judgment on, a minor's disputed claim; a compromise or settlement of a pending action or proceeding to which a minor or person with a disability is a party; or the disposition of the proceeds of a judgment for a minor or person with a disability under Probate Code sections 3500 and 3600-3613 or Code of Civil Procedure section 372 must be verified by the petitioner and must contain a full disclosure of all information that has any bearing on the reasonableness of the compromise, covenant, settlement, or disposition.” (CRC Rule 7.950.)

If an attorney assisted in the preparation of the petition, the petition must disclose: “(1) The name, state bar number, law firm, if any, and business address of the attorney; (2) Whether the attorney became involved with the petition, directly or indirectly, at the instance of any party against whom the claim is asserted or of any party's insurance carrier; (3) Whether the attorney represents or is employed by any other party or any insurance carrier involved in the matter; (4) Whether the attorney has received any attorney's fees or other compensation for services provided in connection with the claim giving rise to the petition or with the preparation of the petition, and, if so, the amounts and the identity of the person who paid the fees or other compensation; (5) If the attorney has not received any attorney's fees or other compensation for services provided in connection with the claim giving rise to the petition or with the preparation of the petition, whether the attorney expects to receive any fees or other compensation for these services, and, if so, the amounts and the identity of the person who is expected to pay the fees or other compensation; and (6) The terms of any agreement between the petitioner and the attorney.” (CRC Rule 7.951.)

The petitioner and claimant must attend the hearing on the petition unless the court for good cause orders otherwise. (CRC Rule 7.952, subd. (a).)

In all cases under Code of Civil Procedure section 372 or Probate Code sections 3600-3601, unless the court has approved the fee agreement in advance, the court must use a reasonable fee standard when approving and allowing the amount of attorney's fees payable from money or property paid or to be paid for the benefit of a minor or a person with a disability.

The court must give consideration to the terms of any representation agreement made between the attorney and the representative of the minor or person with a disability and must evaluate the agreement based on the facts and circumstances existing at the time the agreement was made, except where the attorney and the representative of the minor or person with a disability contemplated that the attorney's fee would be affected by later events.

(CRC Rule 7.955, subd. (a)(1)–(2).)

Plaintiff Cindy Lucrecia Gonzalez brings this petition to approve a minor’s compromise on behalf of claimant Arlene Gonzalez-Vargas. The petition is based on a settlement between Plaintiffs and Defendants Louis Sprague and Defendant in Intervention Farmers Insurance Corporation.

The gross settlement amount is $1 million. (Petition at p. 3.) Claimant is to receive a gross payment from this amount of $250,000, from which shall be deducted $62,500.00 in attorney fees, a 25% apportionment. (Petition at p. 6.) The net amount of $187,500.00 is to be invested in a single-premium deferred annuity, subject to withdrawal upon order of the court. (Petition at p. 8.) The costs are being borne by the adult plaintiffs, who are likewise paying a greater 45% contingency fee on their own recovery. (Castelblanco Decl ¶ 13(c).) The petition is supported by the declaration of Cindy Lucrecia Gonzalez and Plaintiffs’ counsel Eric Castelblanco, who describes the work performed in this case, the apportionment of the settlement, and the basis for the attorney fees sought. (Castelblanco Decl. ¶¶ 5–13.)

Plaintiffs have shown good cause for approval of the compromise presented. The apportionment of the settlement to Arlene Gonzalez-Vargas and the fees claimed therefrom are reasonable.

The petition is therefore GRANTED.