Judge: Michael Shultz, Case: 19STCV03192, Date: 2023-12-07 Tentative Ruling
INSTRUCTIONS: If the parties wish to submit on the tentative ruling and avoid a court appearance on the matter, the moving party must:
1. Contact the opposing party and all other parties who have appeared in the action and confirm that each will submit on the tentative ruling.
2. No later than 4:00 p.m. on the court day before the hearing, call the Courtroom (310-761-4302) advising that all parties will submit on the tentative ruling and waive hearing; and
3. Serve notice of the Court's ruling on all parties entitled to receive service.
If this procedure is followed, when the case is called the Court will enter its ruling on the motion in accordance with its tentative ruling. If any party declines to submit on the tentative ruling, then no telephone call is necessary, and all parties should appear at the hearing. If there is neither a telephone call nor an appearance, then the matter may either be taken off calendar or ruled on.
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Case Number: 19STCV03192 Hearing Date: March 21, 2024 Dept: A
19STCV03192
[TENTATIVE] ORDER CONTINUING
THE ORDER TO SHOW CAUSE HEARING RE: APPROVAL OF PETITION TO COMPROMISE CLAIM
This
action arises from a December 14, 2018, incident wherein Defendant, Antonio
Uribe Caracheo, while driving a tractor trailer with the consent of Lincoln
Transportation Services, Inc. struck
Plaintiff resulting in disabling injuries.
The
Court previously reviewed the petition on January 11, 2024. While the Court was
inclined to approve the settlement and Plaintiff’s proposed distribution of the
net settlement amount to fund an annuity and for payment of counsel’s fees and
costs, the proposed transfer of proceeds to a trust required review of the
trust terms by the Probate Division. (Los
Angeles Super. Ct Rule 4.115.) The
terms of the proposed trust require amendment as described below.
Plaintiff
proposes to transfer a portion of the net settlement amount to a pooled trust
maintained by non-profit trustee. As a court order is required to fund the
trust, the trust terms must satisfy the conditions set forth in California
Rules of Court, Rule 7.903 and Los
Angeles Super. Ct Rule 4.116.
The
proposed trust instrument does not contain some of the terms specified by Local
Rule 4.116(b) concerning conditions for purchase or sale of a personal
residence and restrictions on the trustee’s authority to borrow, lend, and
encumber estate property (among other things) without court order. (Local Rule
4.116 subd (b)(2) – (b)(4).) Additionally, the trust instrument must make itself
subject to the continuing jurisdiction and supervision of the court.
The
foregoing changes should be added to the Joinder Agreement prescribing the
terms of Plaintiff’s participation in the pooled trust. If the above additional terms preclude Plaintiff’s
participation in the pooled trust, Plaintiff may alternatively create an individual
settlement trust or propose other qualifying distribution of settlement funds as
permitted by the Probate Code.
As the proposed trustee is not a corporate
fiduciary, CPT Institute is required to post bond based on calculations set
forth in the Probate Code. (Cal. Rules of Court, Rule 7.903 subd. (c)(5); Prob
Code § 2320.)
Based
on the foregoing, the Court orders the following:
1)
Amend
the trust instrument as described above and submit an amended petition and proposed
order to this court and lodge an unredacted copy of the foregoing documents at
the filing window of the Stanley Mosk Courthouse, Probate Division, at least 30
days before the hearing.
2)
The
proposed order must include a date for the first trust accounting within one
year of approval.
3)
The
proposed order shall require Plaintiff to file a Notice of Commencement of
Proceedings for a Court Supervised Trust on LASC Form PRO 044 within 60
days.
4)
The
proposed order shall set an OSC at 8:30 a.m. in Department A of the Compton
Courthouse set for 60 days after approval to ensure funding of settlement,
submission of the bond as required, for purchase of the annuity, and filing of
LASC Form PRO 044 to open a trust supervision action in the Probate Division.
5)
Plaintiff
is also ordered to file an application or motion, accompanied by a memorandum
of points and authorities for filing records under seal to permit electronic
access to the court and the Probate Division without redaction although the
documents remain sealed to the public. (Cal. Rules of Court, rule 2.551.) The memorandum and accompanying declaration
shall contain facts sufficient for the court to make the required express
findings permitting the filing of sealed records. (Cal. Rules of Court, Rule 2.551 subd.
(b); Rule 2.550.) Pending the determination of the application
or motion, the lodged record will be filed conditionally under seal. (Id.,
Rule 2.551 subd. (b)(4).)
The Court continues the Order to Show
Cause hearing to