Judge: Melvin D. Sandvig, Case: 21STCV05519, Date: 2025-01-17 Tentative Ruling

Counsel wishing to submit on a tentative ruling may inform the clerk or courtroom assisant in North Valley Department F47, 9425 Penfield Ave., Chatsworth, CA 91311, at (818) 407-2247.  Please be aware that unless all parties submit, the matter will still be called for hearing and may be argued by any appearing/non-submitting parties. If the matter is submitted on the court's tentative ruling by all parties, counsel for moving party shall give notice of ruling. This may be done by incorporating verbatim the court's tentative ruling. The tentative ruling may be extracted verbatim by copying and specially pasting, as unformatted text, from the Los Angeles Superior Court’s website, http://www.lasuperiorcourt.org. All hearings on law and motion and other calendar matters are generally NOT transcribed by a court reporter unless one is provided by the party(ies).

Case Number: 21STCV05519    Hearing Date: January 17, 2025    Dept: F47

Dept. F47

Date: 1/17/25

Case #21STCV05519

PETITION FOR APPROVAL OF COMPROMISE OF ACTION

FOR

PERSON WITH A DISABILITY

Petition filed on 11/15/24.

CLAIMANT: Raul Cabrera

GUARDIAN AD LITEM: Melanie Cabrera

DEFENDANTS: GMCND, Inc. dba Placita Market, Sharmeen’s Enterprises, Inc. and Shoukat Ali, Henry and Sara Rose (CA), LLC, Samuel F. Rose Properties, LLC and Rose Brothers Enterprises

SUMMARY OF ACTION: This action arises out of an attack on Plaintiff Raul Cabrera (Plaintiff) on or about 10/5/20 while inside a store located at 10402 Laurel Canyon Boulevard, Pacoima, California 91331, more commonly referred to as La Placita Market (the Premises).  (Complaint ¶1).  On 2/11/21, Plaintiff filed this action against Defendants Henry and Sara Rose, LLC and Rose Brothers Enterprises (the Rose Defendants) as property owners of the Premises, and against GMCND, Inc., and Sharmeen’s Enterprises, Inc., as lessors and/or sublessors of the Premises for negligence and premises liability.  (Complaint ¶¶3-5; Amendment to Complaint filed 5/5/21).  Although not named as a defendant in this action, Samuel F. Rose Properties, LLC is a joint owner of the Premises with Henry and Sara Rose LLC.  Plaintiff suffered catastrophic and permanent injuries as a result of the attack. 

THE SETTLEMENT: GMCND, Inc. dba Placita Market, Sharmeen’s Enterprises, Inc. and Shoukat Ali to pay $500,000.00

Henry and Sara Rose (CA), LLC, Samuel F. Rose Properties, LLC and Rose Brothers Enterprises to pay $150,000.00

ATTORNEY FEES: $260,000.00 (40% of settlement amount)

MEDICAL EXPENSES: $1,149,505.30 (total); $177,454.74 (paid); $50,535.70 (reductions); $126,919.04 (to be paid from settlement)

COSTS: $45,647.96

AMOUNT TO BE PAID TO CLAIMANT: $217,433.00 with $150,000.00 to be invested in a single-premium annuity and $67,433.00 to be paid or transferred to the trustee of a Special Needs Trust (SNT).  (See accompanying Ruling on SNT).

RULING: The petition will be granted/approved subject to the ruling on the Special Needs Trust.  (See accompanying Ruling).

   Cabrera v. GMCND, Inc. (21STCV05519)

Trust
Issues in Compromise Petition

Hearing Date:  1/17/25

NATURE OF ACTION: 

Civil Lawsuit

PETITION TO APPROVE COMPROMISE FILED:         

11/15/25

NOTICE TO STATE AGENCIES WHEN PROPOSED TRUST IS AN SNT:

When seeking approval of a special needs trust (SNT), notice of
the hearing and service of the petition must be made upon three state agencies,
as required by subsection (c) of Probate Code section 3611 (emphasis added):

(c) After a hearing by the court, that
the remaining balance of any money and other property be paid to a special
needs trust established under Section 3604 for the benefit of the minor or
person with a disability. Notice of the time and place of the hearing and a
copy of the petition shall be mailed to the State Director of Health Care
Services, the Director of State Hospitals, and the Director of Developmental
Services at the office of each director in Sacramento at least 15 days before
the hearing.

Both the proof of service attached to the petition brief and the
proof of service separately filed on 11/15/24 indicate service to these
agencies and notice is complete. 

PLAINTIFF:      

Raul Cabrera, age 58, person with a disability

PETITIONER: 

Melanie Cabrera (Appointed 10/27/21)

GROSS AND NET SETTLEMENT (Petition, p. 6, sections 15 and
16f):          

Gross $650,000, Net $217,433

PROPOSED RECIPIENT OF SETTLEMENT PROCEEDS (Petition, pp. 8-9, sec.
18):

Petitioner proposes to fund $67,433 cash into a SNT for the
benefit of plaintiff and to use the remaining $150,000 to purchase an annuity
that would pay into the SNT under the following terms:

Commencing 05/01/2025, $5,122.24 per
month for 2 years and 6 months, guaranteed; (final guaranteed payment on
10/01/2027).

(Annuity documents at court’s pdf, p. 43.) 

An SNT is used to receive the settlement funds in these situations
so that plaintiff does not lose benefits eligibility for Medi-Cal, SSI, and
other benefits.  Historically, a person
receiving Medi-Cal or SSI benefits could have only up to $2,000 in non-exempt
assets, and any additional non-exempt assets over $2,000 would cause the loss
of benefits eligibility under the relevant federal and state law.  Funds held in a valid SNT, however, are
exempt assets that do not count toward the $2,000 asset limit for purposes of
calculating benefits eligibility.  On
January 1, 2024, the Medi-Cal asset qualification limit was eliminated and
there is no longer a means test for Medi-Cal. 
The income qualifications, and the asset qualification for other
benefits, like SSI, did not change and therefore there might remain a reason
for creation and funding of a SNT to maintain other benefits.

BRIEFING REGARDING TRUST ISSUES:

Petitioner provides briefing regarding trust issue at Attachment
18b(4), court’s pdf at p. 53.

PROPOSED TRUST INSTRUMENT:

Petitioner provides the proposed trust instrument at Exhibit A to
Attachment 18b(4), court’s pdf at p. 63.

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

FINDINGS WHEN THE PROPOSED TRUST IS AN SNT:

When approving the establishment or funding of a SNT from
settlement proceeds, the court must make the following findings pursuant to
Probate Code section 3604(b).  There are
factual allegations in the Petition to Approve Compromise and its attachments
supporting the settlement that generally cover the requisite findings and the
court therefore makes these findings:

• The SNT beneficiary has a
  disability which substantially impairs the individual’s ability to provide
  for her 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.

TRUSTE AND BOND:

The proposed initial trustee is petitioner,
Melanie Cabrera.  Normally, bond must be
required of a trustee unless the trustee is a corporate fiduciary.  (California Rules of Court, Rule 7.903(c)(5),
Probate Code section 2320.)  The
proposed trustee does not meet that requirement and the court requires bond. 

In the briefing, petitioner calculates $121,477.30 bond (rounded
up to $121,500 in the submitted proposed order) based upon the assets to be
funded into the trust, plus anticipated annual income from investments and any
annuity, plus an additional amount required for the costs of any recovery on
the bond.  That calculation appears to
be proper and the court requires $121,500 bond to be submitted by trustee to
this department (which will later be resubmitted to the Probate court in any
trust supervision action).    

ORDERS/PROPOSED ORDER:

Proposed Order received stamp date:  11/15/25

General trust orders at Attachment 8b(2),
order pdf, p. 6.

When the petition is approved, this
court requires the filing of a Notice of Commencement of Proceedings for a
Court Supervised Trust on LASC Form PRO 044 in the Probate division of this
court within 60 days.  It is this filing
that will pass jurisdiction over the trust to the Probate division of this
court to provide for court supervision of the trust over the years.  It is in that Probate case that accountings
will be filed periodically by trustee, as well as any other petitions involving
the trust.  The proposed order
sufficiently includes this language. 
Okay.    

When the petition is approved, this
court also orders that the trustee’s first accounting is due filed in the
Probate case within a year, and an actual 14 month calendar due date should be
stated.  It is that actual date that will
be picked up by the Probate filing window when the trust supervision action is
filed and an OSC/compliance date re the first accounting will be set.  The proposed order sufficiently includes
this language.  An actual 14 month due
date for the first accounting shall be inserted into the blank provided at
order pdf, p. 7, paragraph 9. 

When the petition is approved, this
court should also set an OSC in its own department in approximately 60 days to
ensure the funding of the settlement, submission of bond, and the filing of
LASC Form PRO 044 to open a trust supervision action in probate.  The proposed order sufficiently includes
this language.  Th date/time/department
for the OSC shall be inserted in the blanks provided at order pdf, p. 7,
paragraph 8. 

Rulings on Trust Issues:

·        
Approve settlement, fees, etc.: 
[See accompanying Ruling on Petition]

·        
Approve creation and funding of proposed trust: Yes

·        
Make the Probate Code section 3604(b) findings: Yes

·        
Require trustee bond: $121,500

·        
Require first trust accounting in one year and set calendar due
date for filing in 14 months.

·        
Set OSC in civil department in approximately 60 days to ensure
funding of settlement, submission of bond if required, purchase of annuity if
relevant, and filing of LASC Form PRO 044 to open trust supervision action in
probate.

·        
Proposed Order: Okay with minor additions needed