Judge: Michael P. Linfield, Case: 22STCV03952, Date: 2023-03-20 Tentative Ruling

Case Number: 22STCV03952    Hearing Date: March 20, 2023    Dept: 34

SUBJECT:         Petition to Approve Compromise of Pending Action for Minor

Moving Party:  Plaintiff/Guardian ad Litem Aundria Bethal

Resp. Party:    None

Plaintiff/Guardian ad Litem Aundria Bethal’s Petitions are GRANTED, with the one change indicated above – i.e., that no attorney's fees or costs are to be subtracted from the $5,000.00 awarded each minor.

The funds are PERMITTED to be placed in blocked accounts that will not allow withdrawals of principal or interest without prior court order until the date at which each Minor becomes 18 years old, at which point that Minor may withdraw the principal and interest without a court order.

        Plaintiff/Guardian ad Litem is ORDERED to deliver to the manager at the financial institution where the funds are to be deposited a certified or filed copy of this Order.

Plaintiff/Guardian ad Litem is ORDERED to promptly file with the Court a receipt from the financial institution, acknowledging receipt of both the funds deposited and the order for deposit of funds.

BACKGROUND:

On February 1, 2022, Plaintiffs Aundria Bethal, Pedro Peinado, Aubrey Peinado, and Pedro Peinado Jr. filed their Complaint against Intrepid 822 Inglewood LP regarding causes of action arising during Plaintiffs’ lease with Defendant.

On February 9, 2022, the Court appointed Plaintiff Aundria Bethal as the guardian ad litem for Plaintiff Aubrey Peinado.

On February 10, 2022, the Court appointed Plaintiff Aundria Bethal as the guardian ad litem for Plaintiff Pedro Peinado Jr.

On May 23, 2022, Defendant filed its Answer and its Cross-Complaint against Roes 1 through 10 on causes of action for equitable indemnity, equitable contribution, and declaratory relief.

On March 7, 2023, Plaintiff/Guardian ad Litem Aundria Bethal filed for each of the minors a Form MC-350, Petition to Approve Compromise of Pending Action for Minor. For each of the minors, Plaintiff/Guardian ad Litem concurrently filed: (1) Form MC-351 (Proposed Order); and (2) Form MC-355, Order to Deposit Funds in Blocked Account.

No opposition or other response has been filed.

ANALYSIS:

I.            Legal Standard

“The guardian or conservator of the estate or guardian ad litem so appearing for any minor, person who lacks legal capacity to make decisions, or person for whom a conservator has been appointed shall have power, with the approval of the court in which the action or proceeding is pending, to compromise the same, to agree to the order or judgment to be entered therein for or against the ward or conservatee, and to satisfy any judgment or order in favor of the ward or conservatee or release or discharge any claim of the ward or conservatee pursuant to that compromise. . . .” (Code Civ. Proc., § 372, subd. (a)(3).)

“A petition for court approval of a compromise or covenant not to sue under Code of Civil Procedure section 372 must comply with rules 7.950 or 7.950.5, 7.951, and 7.952.” (Cal. Rules of Court, rule 3.1384, subd. (a).)

“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 upon the reasonableness of the compromise, covenant, settlement, or disposition. Except as provided in rule 7.950.5, the petition must be submitted on a completed Petition for Approval of Compromise of Claim or Action or Disposition of Proceeds of Judgment for Minor or Person With a Disability (form MC-350).” (Cal. Rules of Court, rule 7.950.)

“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.” (Cal. Rules of Court, rule 7.955, subd. (a)(1).)

“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.”

“A petition requesting court approval and allowance of an attorney's fee under (a) must include a declaration from the attorney that addresses the factors listed in (b) that are applicable to the matter before the court.” (Cal. Rules of Court, rule 7.955, subd. (c).)

II.        Discussion

Plaintiff/Guardian ad Litem Aundria Bethal petitions the Court for approval of a compromise that includes Plaintiffs Aubrey Peinado, who is a four-year-old minor, and Pedro Peinado Jr., who is a three-year-old minor. A form MC-350 has been filed in connection with each of the Petitions.

Among other things, the Compromise includes a $5,000.00 payment to Plaintiff Aubrey Peinado, a $5,000.00 payment to Plaintiff Pedro Peinado Jr., a $40,000.00 payment to Plaintiff/Guardian ad Litem Aundria Bethal, and a $40,000.00 payment to Plaintiff Pedro Peinado. According to the Attachment for Item 14a, the larger settlements for the adults are due to compensate them for losses not suffered by the minors.

According to the Attachment for Item 14a, attorney’s fees are to be paid from the settlement amounts for all Plaintiffs, assessed by percentage after advanced costs (which total here $1,464.12) have been recovered. The percentage of attorney’s fees to be assessed from the adult Plaintiffs is 40%, and the percentage of attorney’s fees to be assessed from the minor Plaintiffs is 25%. (See also Petition, Fee Agreement, ¶ 4.B.) The facts surrounding the underlying facts of the fact and the attorney’s work on behalf of the Plaintiffs is discussed at length in the Attachment to Item 14a. The Legal Services Agreement is also provided.

        Pursuant to Code of Civil Procedure section 372 and California Rules of Court, rules 7.950 and 7.955, the Court finds that the Compromise is generally reasonable and that the applicable procedures have been followed.

        The Court will grant the petition with the following changes:  the attorneys are not to assess any attorney's fees against the funds allotted to the two minors, Pedro Peinado Jr. and Aubrey Peinado.  In other words, each minor is to receive the full $5,000.00 awarded them in each of their own blocked accounts.

        With the above, change, the Court GRANTS the Petition.

        In addition, for each of the Minors, Plaintiff/Guardian ad Litem included Form MC-355, Order to Deposit Funds in Blocked Account. Each Form MC-355 lists the Minor’s birthday, requests that no withdrawal of interest or principal be allowed without court order prior to the Minor’s 18^th birthday, and requests that such withdrawals can be made by the Minor without court order once they reach 18 years of age.

“In any case in which the court orders that funds to be received by a minor or a person with a disability must be deposited in a financial institution and not disbursed without further order of the court, the order must include a provision that a certified or filed endorsed copy of the order must be delivered to a manager at the financial institution where the funds are to be deposited, and that a receipt from the financial institution must be promptly filed with the court, acknowledging receipt of both the funds deposited and the order for deposit of funds.” (Cal. Rules of Court, rule 7.953, subd. (a).)

“If, in the order approving the compromise of a minor's claim, there is a finding that the minor will attain the age of majority on a definite date, the order for deposit may require that the depository permit the withdrawal of funds by the former minor after that date, without further order of the court.” (Cal. Rules of Court, rule 7.953, subd. (a).)

        The Court PERMITS the funds to be placed in blocked accounts that will not allow withdrawals of principal or interest without prior court order until the date at which each Minor becomes 18 years old, at which point that Minor may withdraw the principal and interest without a court order.

        The Court ORDERS Plaintiff/Guardian ad Litem to deliver to the manager at the financial institution where the funds are to be deposited a certified or filed copy of this Order.

        The Court ORDER Plaintiff/Guardian ad Litem to promptly file with the Court a receipt from the financial institution, acknowledging receipt of both the funds deposited and the order for deposit of funds.

III.     Conclusion

Plaintiff/Guardian ad Litem Aundria Bethal’s Petitions are GRANTED, with the one change indicated above – i.e., that no attorney's fees or costs are to be subtracted from the $5,000.00 awarded each minor.

The funds are PERMITTED to be placed in blocked accounts that will not allow withdrawals of principal or interest without prior court order until the date at which each Minor becomes 18 years old, at which point that Minor may withdraw the principal and interest without a court order.

        Plaintiff/Guardian ad Litem is ORDERED to deliver to the manager at the financial institution where the funds are to be deposited a certified or filed copy of this Order.

Plaintiff/Guardian ad Litem is ORDERED to promptly file with the Court a receipt from the financial institution, acknowledging receipt of both the funds deposited and the order for deposit of funds.