Judge: Maurice A. Leiter, Case: 23STCV23325, Date: 2024-02-21 Tentative Ruling

Case Number: 23STCV23325    Hearing Date: February 21, 2024    Dept: 54

Hearing Date: February 21, 2024

Department 54, Judge Maurice A. Leiter

(2) Petitions for Minor’s Compromise

Moving Party: Minor Plaintiffs

Responding Party: None

T/R:      THE PETITIONS ARE GRANTED.

The Court sets an OSC re purchase of annuity as to Iyse for April 24, 2024 at 8:30 am.

As to the special needs trust (SNT) for Isaias, the Court orders a bond in the amount of $1,671,500. The Court sets an OSC re submission of bond and filing of LASC Form PRO 044 to open trust supervision action in probate for April 24, 2024 at 8:30 am. The Court requires first trust accounting in 12 months and sets a due date for filing of accounting of May 21, 2025.

PLAINTIFFS 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 petitions.  No opposition has been received.

Compromises of disputed claims brought by minors are governed in part by CCP § 372. The statute allows a guardian ad litem to appear in court on behalf of a minor claimant and gives the guardian ad litem the power to compromise the minor’s claim “with the approval of the court in which the action or proceeding is pending.”  A petition for court approval of a compromise must be verified by the petitioner and must contain a full disclosure of all information that has any bearing upon the reasonableness of the compromise or covenant.  (CRC Rule 7.950.)

CRC Rule 7.952(a) requires the attendance of the petitioner and claimant at the hearing on the compromise of the claim unless the court for good causes dispenses with their personal appearance.

“Neither section 372 nor the California Rules of Court (rules 7.950 & 7.952) contemplates a noticed motion and adversary hearing when court approval of a minor's compromise is sought. Although we need not decide the question, it would appear that a petition to approve or disapprove a minor's compromise may be decided by the superior court, ex parte, in chambers.”  (Pearson v. Superior Court (2012) 202 Cal. App. 4th 1333, 1337.) 

Minor Plaintiffs move for approval of a settlement with Defendants Southwestern Law School and Beach Front Property Management, Inc. in which minor Iyse Melendez would receive approximately 5.5% and Isaias Melendez would receive 30% of the total settlement for all four Plaintiffs. Attorneys’ fees of 35% will be deducted from the minor claimant’s settlement amounts. Iyse’s settlement funds will be placed into a deferred annuity. Isaias’ settlement funds will be deposited into a special needs trust.

This is a landlord-tenant action. Having reviewed the petition, the Court finds that the individual settlements and attorney’s fees are fair in light of the alleged injuries sustained by claimants.

The Court sets an OSC re purchase of annuity as to Iyse for April 24, 2024 at 8:30 am.

As to the special needs trust (SNT) for Isaias, the Court makes the following findings pursuant to Probate Code section 3604(b):

• The SNT beneficiary has a disability which substantially impairs the individual’s ability to provide for his own care or custody and constitutes a substantial handicap;
• The SNT beneficiary is likely to have special needs that will not be met without the trust;
• The money to be paid to the trust does not exceed the amount that appears reasonably necessary to meet the SNT beneficiary’s special needs.

The main requirements for court created or funded trusts are set forth at California Rules of Court Rule 7.903(c) and LASC Rule 4.116(b).  The proposed trust instrument meets those requirements.

The proposed initial trustee is Pamela Blattner, a private professional fiduciary (PPF) in Encino, California. Under CRC Rule 7.903(c)(5), Probate Code section 2320, a bond is required (the trustee is not a corporate fiduciary). The Court ORDERS a bond in the amount of $1,671,500.

The Court sets an OSC re submission of bond and filing of LASC Form PRO 044 to open trust supervision action in probate for April 24, 2024 at 8:30 am. The Court requires first trust accounting in 12 months and sets a due date for filing of accounting of May 21, 2025.

The petitions are GRANTED.