Judge: Maurice A. Leiter, Case: 19STCV18142, Date: 2023-05-22 Tentative Ruling

Case Number: 19STCV18142    Hearing Date: May 22, 2023    Dept: 54

Hearing Date: May 22, 2023

Department 54, Judge Maurice A. Leiter

Motion to Allocate Settlement Funds;

Motion to Seal

Moving Party: Plaintiffs Allstate Insurance company, Allstate Indemnity Company, Allstate Fire and Casualty Insurance Company, Allstate Property and Casualty Insurance Company, Allstate Northbrook Indemnity Company, and Allstate New Jersey Insurance Company

Responding Party: None

T/R:     PLAINTIFF’S MOTIONS ARE GRANTED.

PLAINTIFF TO NOTICE.

If the parties wish to submit on the tentative, please email the courtroom at¿SMCdept54@lacourt.org¿with notice to opposing counsel (or self-represented party) before 8:00 am on the day of the hearing. 

The Court considers the moving papers. No opposition has been received.

BACKGROUND

            This is a qui tam action alleging insurance fraud under Insurance Code § 1871.7 and for UCL violations. Plaintiffs contend that Defendants engaged in a fraudulent billing scheme for certain medical services.

ANALYSIS

A. Motion to Allocate Settlement Funds

            CA Ins. Code § 1871.7(g)(2)(A) provides,

If the district attorney or commissioner does not proceed with an action under this section, the person bringing the action or settling the claim shall receive an amount that the court decides is reasonable for collecting the civil penalty and damages. Except as provided in subparagraph (B), the amount shall not be less than 40 percent and not more than 50 percent of the proceeds of the action or settlement and shall be paid out of the proceeds. That person shall also receive an amount for reasonable expenses that the court finds to have been necessarily incurred, plus reasonable attorney's fees and costs. All of those attorney's fees and costs shall be imposed against the defendant. The parties shall serve the commissioner and the local district attorney with complete copies of any and all settlement agreements, and terms and conditions, for actions brought under this article at least 10 days prior to filing any motion for allocation with the court under this paragraph. The court may allocate the funds pursuant to the settlement agreement if, after the court's ruling on objection by the commissioner or the local district attorney, if any, the court finds it is in the interests of justice to follow the settlement agreement.

            Allstate moves for an order allocating the entire settlement amount to Allstate on the ground that Allstate’s fees and costs associated with prosecuting this action exceed the total settlement amount. Allstate has served the commissioner and local district attorney with the settlement agreement; they have not objected. Allstate has complied with Ins. Code § 1871.7(g)(2)(A).

            The motion is GRANTED.

B. Motion to Seal

“The court may order that a record be filed under seal only if it expressly finds facts that establish: (1) There exists an overriding interest that overcomes the right of public access to the record; (2) The overriding interest supports sealing the record; (3) A substantial probability exists that the overriding interest will be prejudiced if the record is not sealed; (4) The proposed sealing is narrowly tailored; and (5) No less restrictive means exist to achieve the overriding interest.”  (CRC Rule 2.550(d).)  “The motion or application must be accompanied by a memorandum and a declaration containing facts sufficient to justify the sealing.”  (CRC Rule 2.551(b)(1).)

Allstate moves to seal documents filed in connection with the motion to allocate settlement funds. Allstate represents that the parties agreed the settlement is confidential. This overrides any interest the public would have in the settlement agreement. The requirements of the rule have been met. The motion is GRANTED.