Judge: Michael P. Linfield, Case: 23STCV10187, Date: 2024-05-14 Tentative Ruling

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Case Number: 23STCV10187    Hearing Date: May 14, 2024    Dept: 34

SUBJECT:        Petition for Approval of Compromise of Claim or Action or Disposition of Proceeds of Judgment for Minor or Person with a Disability

 

Moving Party: Stephany Reyes

Resp. Party:    None

 

SUBJECT:        Petition for Approval of Compromise of Claim or Action or Disposition of Proceeds of Judgment for Minor or Person with a Disability

 

Moving Party: Stephany Reyes

Resp. Party:    None

 

SUBJECT:        Petition for Approval of Compromise of Claim or Action or Disposition of Proceeds of Judgment for Minor or Person with a Disability

 

Moving Party: Stephany Reyes

Resp. Party:    None

 

SUBJECT:        Petition for Approval of Compromise of Claim or Action or Disposition of Proceeds of Judgment for Minor or Person with a Disability

 

Moving Party: Stephany Reyes

Resp. Party:    None

 

 

The Petitions are GRANTED, with the one change indicated below — i.e., that no attorney’s fees or costs are to be subtracted from amounts awarded to the minors.

 

BACKGROUND:

 

On May 5, 2023, Plaintiffs Stephany Reyes, Felipe Aaron Guerrero, Genesis Guerrero, Aaron Guerrero, Aiden Guerrero, and Victoria Guerrero filed their Complaint against Defendant Shrikant Tamhane on causes of action arising from Plaintiffs’ tenancy with Defendant.

 

On May 16, 2023, the Court appointed Plaintiff Stephany Reyes as the guardian ad litem for Plaintiffs Genesis Guerrero, Aaron Guerrero, Aiden Guerrero, and Victoria Guerrero — each of whom is a minor.

 

        On July 5, 2023, Defendant filed his Answer to the Complaint.

 

        On April 18, 2024, on behalf of each of the minor Plaintiffs, Plaintiff/Guardian ad Litem Stephany Reyes filed: (1) Judicial Council Form MC-350, Petition for Approval of Compromise of Claim or Action or Disposition of Proceeds of Judgment for Minor or Person with a Disability; and (2) Judicial Council Form MC-351, Order Approving Compromise of Claim or Action or Disposition of Proceeds of Judgment for Minor or Person with a Disability.

 

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(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(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.” (Cal. Rules of Court, rule 7.955(a)(2).)

 

“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(c).)

 

II.       Discussion

 

Plaintiff/Guardian ad Litem Stephany Reyes petitions the Court for approval of a compromise that includes: (1) Genesis Guerrero, who is a fifteen-year-old minor; (2) Aaron Guerrero, who is a twelve-year-old minor; (3) Aiden Guerrero, who is a nine-year-old minor; and (4) Victoria Guerrero, who is a six-year-old minor.

 

        Among other things, the Gross Settlement Amount is $425,000.00, which consists of $142,500.00 payments to each of the adult Plaintiffs and $35,000.00 payments to each of the minor Plaintiffs. (Petitions, Items 10, 11.b.(5).) According to the Petitions, the differences in the amounts per plaintiff is because the adults suffered the majority of the direct damages in this matter. (Petitions, Attachment 11(b)(3)–(6), pp. 2:24–3:2.)

 

        The percentage of attorney’s fees to be assessed from each of the minor plaintiffs is 25% of their respective awards. (Petitions, Attachment 11(b)(3)–(6), p. 3:7.) According to Item 16 of the Petitions, the total amount of fees requested is $8,750.00 from each of the minor Plaintiffs. (Petitions, Item 16.c.) In addition, each minor Plaintiff had a specific amount of medical expenses that would have been paid from the proceedings of the settlement or judgment, including: (1) $1,420.29 for Genesis Guerrero; (2) $1,255.34 for Aaron Guerrero; (3) $128.49 for Aiden Guerrero; and (4) $128.49 for Victoria Guerrero. (Petition, Item 16.b.)

 

        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 petitions with the following change: the attorneys are not to assess any attorney’s fees or costs against the funds allotted to the minors. In other words, each of the minors is to receive the full $35,000.00 awarded to each of them.

 

        With the above change, the Court GRANTS the Petitions.

 

III.     Conclusion

 

 The Petitions are GRANTED, with the one change indicated above — i.e., that no attorney’s fees or costs are to be subtracted from amounts awarded to the minors.