Judge: Gregory Keosian, Case: 21STCV10946, Date: 2023-09-06 Tentative Ruling

Case Number: 21STCV10946    Hearing Date: September 6, 2023    Dept: 61

Petitioners Chantay Cummings and Brian Arffman’s Petitions to Confirm Minor’s Compromises for Claimants Kassidy Arffman, Chase Cummings, and Kaliyah Gray are GRANTED.

Petitioners to provide notice.

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).)

Petitioning Plaintiffs Chantay Cummings and Brian Arffman seek court approval of a settlement agreement reached with all parties to this action, including minor claimants Kassidy Arffman, Chase Cummings, and Kaliyah Gray. The overall settlement in this action is for a gross sum of $490,000.00. (Petition Att. 11.) Each adult plaintiff is to receive a gross payment of $36,538.47, while each minor plaintiff (including the claimants here) are to receive a gross payment of $5,000.00. (Ibid.) $9,572.83 of this total gross settlement is allocated to the payment of litigation costs, while $189,964.79 is allocated to the payment of attorney fees, representing a 40% contingency fee on the settlements of adult plaintiffs, and a 25% fee for the minor plaintiffs. (Ibid.; Att. 13a.) For the minor plaintiffs, this allocation of costs ($97.68 per minor plaintiff) and attorney fees ($1,225.58 per minor plaintiff) yields a net settlement payment of $3,676.74. (Petition Att. 11.) These settlement amounts are to be deposited into insured accounts, subject to withdrawal upon court authorization. (Petition at p. 8.)

The petition is supported by the declaration of Christofer Chapman, counsel for Plaintiffs, who states that the adult plaintiffs in this action are to receive larger settlement awards to compensate the greater damages incurred, such as out-of-pocket costs, not suffered by the minors. (Att. 13a, ¶ 3.) The apportionment of fees is due to a retainer agreement executed by the plaintiffs. (Id. at ¶ 4.) Chapman describes the nature of the work performed in this litigation, including client meetings, site inspections, depositions, mediation sessions, court appearances, the exchange of written discovery, and the interpretation of insurance policies. (Id. at ¶ 5.)

Petitioners have shown good cause for approval of the compromises presented. The petitions are supported by the declaration of counsel, who testifies concerning the nature of the work performed in this litigation, as well as the existence of contingency fee agreements executed by the Plaintiffs. The fees sought are reasonable in light of the above facts.

The petitions are therefore GRANTED.