Judge Lynne M. Hobbs, Case Number: 22STCV27001, Date: 2025-02-11 Tentative Ruling

Judge: Lynne M. Hobbs, Case: 22STCV27001, Date: 2025-02-11 Tentative Ruling

Case Number: 22STCV27001 Hearing Date: February 11, 2025 Dept: 61

VIVIAN GOMEZ, et al. vs KRISPY KREME DOUGHNUT CORPORATION, A CORPORATION, et al.

Tentative:

Petitioners Espinoza and Uribes' Petitions to Approve Minor’s Compromise for Claimants L.G. and A.G., respectively, are GRANTED. Petitioners are ordered to submit the proposed orders on Judicial Council form within five (5) days.

Judicial Assistant is to calendar OSC for Proof of Deposit, for each minor.

Plaintiffs to provide notice.

Analysis:

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).)

Plaintiffs Monica Espinoza and Antonieta Uribes seek to have approved compromises for minor claimants L.G. and A.G. The settlements at issue are as follows. The global settlement amount is $9.5 million, from which $3.8 million (40 %) is to be deducted as attorney fees, along with $70,042.31 in costs. (Petition Att. 10c.) Thus the $3,166,666.67 gross settlement payment to each claimant is reduced to a net payment of $1,876,652.56. (Petition at p. 6.) The net funds are to be deposited as follows. $1,652.56 of these funds are to be delivered to claimants’ parents pursuant to Probate Code § 3401–3402. The remainder ($1,875,000.00) is to be invested in a single-premium deferred annuity subject to withdrawal only on authorization of the court. (Petition at p. 8, Att. 18b(3).)

Plaintiffs’ counsel supports the request for attorney fees with a declaration attesting to 1,392 hours of attorney work incurred on this matter. (Saba Decl. ¶ 31.) The retainer agreement pursuant to which counsel was employed states that they are to be paid on contingency with 40% of any recovery obtained after a lawsuit is commenced. (Petition Att. 17a.) Counsel presents testimony concerning their experience, qualifications, and the work performed in this action, which was commenced more than two years ago in August 2022. (Saba Decl. ¶¶ 3–27.) Petitioners also present an itemization of the costs sought to be reimbursed from the settlement. (Petition Att. 13b.)

Petitioners have shown the reasonableness of the settlement and of the attorney fees to be paid therefrom under CRC Rule 7.955. The petitions are GRANTED.