Judge Lynne M. Hobbs, Case Number: 22STCV30539, Date: 2025-03-05 Tentative Ruling

Judge: Lynne M. Hobbs, Case: 22STCV30539, Date: 2025-03-05 Tentative Ruling

Case Number: 22STCV30539 Hearing Date: March 5, 2025 Dept: 61

MARIA ALVARADO, et al. vs DENNIS W. CHANG, AS TRUSTEE OF THE DENNIS W CHANG LIVING TRUST, et al.

Tentative

The Court excuses the appearance of Petitioner and Claimant.

Plaintiff Maria Alvarado’s Petition to Approve Minor’s Compromise for Minor Plaintiff Giselle Herminia Garnica Alvarado is GRANTED.

Judicial Assistant to schedule OSC re Proof of Deposit in Blocked Account within 90 days.

Plaintiff to give 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).)

Plaintiff Maria Alvarado brings the present petition to approve minor’s compromise on behalf of minor Plaintiff Giselle Herminia Garnica Alvarado (Claimant). The details of the settlement are as follows. The gross settlement amount to be paid all Plaintiffs by Defendants Dennis and Ethan Chang (Defendants) is $360,000.00. (Petition Att. 11b(5).) From this amount the adult plaintiffs are to each receive gross payments of $85,000.00, while the two minor plaintiffs, including Claimant here, are each to receive $10,000.00. (Ibid.) From this $10,000 amount, $215.83 are to be deducted for reimbursement of costs, while $2,446.04 are to be deducted for payment of attorney fees, pursuant to a 25% contingency fee agreement. (Chapman Decl. ¶ 10; Petition Att. 17a.) This leaves a net settlement payment to Claimant of $7,338.13, to be placed in insured accounts in this state, subject to withdrawal by court order. (Petition at p. 8.)

The petition has shown good cause for the apportionment of the compromise presented (Petition Att. 11b(6)) and for the reasonableness of the attorney fees sought, per the declaration of Plaintiff’s counsel as to their qualifications and the work performed on this case. (Chapman Decl. ¶¶ 9–11.)

The petition is therefore GRANTED.