Judge Lynne M. Hobbs, Case Number: 23STCV03411, Date: 2025-03-11 Tentative Ruling

Judge: Lynne M. Hobbs, Case: 23STCV03411, Date: 2025-03-11 Tentative Ruling

Case Number: 23STCV03411 Hearing Date: March 11, 2025 Dept: 61

NOAH LUGO, A MINOR, BY AND THROUGH HIS GUARDIAN AD LITEM ZABDIEL LUGO, et al. vs KAISER FOUNDATION HOSPITALS, A CORPORATION, et al.

Tentative

The Court excuses the appearance of the Petitioner and the claimant from attendance at the hearing.

Plaintiff Zabdiel Lugo’s Petition to Approve Minor’s Compromise for Plaintiff Noah Lugo is GRANTED.

Judicial Assistant is to calendar an OSC re proofs of deposit re annuity and special needs trust.

Plaintiff is 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 Zabdiel Lugo seeks approval of a settlement entered on behalf of minor Plaintiff Noah Lugo (Claimant) as follows. Defendant Kaiser Foundation Hospitals is to pay a global settlement of $9 million. (Petition at p. 3.) From these amounts are deducted $300,000 to be paid as medical expenses, $2,838,000.00 in attorney fees, and $400,000 in costs. (Petition at p. 5.) $1,460,000 is to be paid to Plaintiffs Zabdiel Lugo and Elizabeth Coronado. (Petition at p. 3.) This leaves Claimant with a net settlement payment of $4,002,000.00. Two million dollars of this money is to be invested in a single-premium deferred annuity subject to withdrawal upon order of the court, while another $2,002,000 is to be paid to the trustee of a special needs trust established under Probate Code § 3604, for the benefit of the claimant. (Petition at p. 8.)

The motion is supported by the declaration of Plaintiffs’ counsel, Bruce G. Fagel, who testifies to the work performed in this case, the costs incurred, and the logic of the apportionment of settlement in part to Claimant’s parents and to the reasonableness of the 33% attorney fee request, pursuant to a contingency fee agreement. (Fagel Decl. at pp. 1–4; Att. 17(a).) Counsel testifies that this case proceeded through multiple depositions, and partially through arbitration, and settlement was reached prior to an award of damages. (Fagel Decl. at pp. 2–4.) He also testifies to his long experience in the medical malpractice field. (Id at pp. 4–5.) Plaintiffs thus present reasonable grounds for the apportionment of the settlement in this case, as well as the attorney fees and costs sought.

The motion is therefore GRANTED.