Judge: Ralph C. Hofer, Case: 24NNCV01365, Date: 2024-07-19 Tentative Ruling

Case Number: 24NNCV01365    Hearing Date: July 19, 2024    Dept: D

TENTATIVE RULING 

Calendar:    9
Date:          7/19/2024
Case No: 24 NNCV01365
Case Name: Daco, et al. v. Sargsyan, et al.

COMPROMISE OF PENDING ACTION (2)
 
Moving Party:            Petitioner Fiona Daco as Parent and Guardian ad Litem for claimant Jacob Daco   
Petitioner Fiona Daco as Parent and Guardian ad Litem for claimant Felicity Daco   

SUMMARY OF FACTS:
Plaintiffs Fiona Daco, Jason Daco, Jacob Daco, through his GAL, and Felicity Daco, through her GAL, brought this action against defendants Arman Sargsyan and Lusine Bushnakyan, alleging that as the result of defendant Sargsyan’s negligent operation and ownership of a vehicle negligently owned and entrusted by defendant Bushnakyan, plaintiffs suffered injuries and damages.  The form complaint alleges a cause of action for Motor Vehicle. 

ANALYSIS:
Under CCP § 372, an action of a minor may be compromised by a guardian ad litem “with the approval of the court in which the action or proceeding is pending.”   

The Second District has observed that the GAL’s “purpose is to protect the rights of the minor,” but “it is the duty of the court to see that such rights are protected.”   Scruton v. Korea Air Lines Co. (1995) 39 Cal.App.4th 1596, 1605,  citing Berry v. Chaplin (1946) 74 Cal. App. 2d 652, 657. 

The petitions indicate that claimant Jacob Daco, a minor, age 10, and claimant Felicity Daco, a minor, age 8, were stopped in a vehicle with their  family on the freeway when defendant Sargsyan rear-ended their vehicle, causing the Dacos’ vehicle to be propelled into the vehicle in front of it.  [Petitions ¶¶ 5].  

The petition brought on behalf of Jacob Daco indicates that as a result of this accident, Jacob Daco suffered emotional distress caused by the accident, and received psychological counseling.  [Petition, ¶¶ 6, 7].  The petition also indicates that claimant has recovered completely from the effects of the injuries, and there are no permanent injuries.  [Petition, ¶ 8].  The petition attaches records from an examination of the claimant on October 10, 2023, which suggests that with respect to the children, the parents check with the school to see if they have counseling support, email teachers, and contact the psychological counseling office again if there are any signs of trauma.   [Attachment 8].  

The petition brought on behalf of Felicity Daco indicates that as a result of this accident, Felicity Daco suffered headache, head pain, and emotional distress caused by the accident, and was transported by ambulance to the hospital, was monitored and discharged, and later received psychological counseling.  [Petition, ¶¶ 6, 7].  The petition also indicates that claimant has recovered completely from the effects of the injuries, and there are no permanent injuries.  [Petition, ¶ 8].  The petition attaches a report from the City of Los Angeles Fire Department, as well as from the Cedar’s Sinai emergency department, showing no medication was prescribed and the disposition was the patient being discharged with follow up information “If symptoms worsen.”  [Attachment 8]. 
 
 The petition also attaches records from an examination of both claimants on October 10, 2023, which suggests that with respect to the children, the parents check with the school to see if they have counseling support, email teachers and contact the psychological counseling office again if there are any signs of trauma.   [Attachment 8].  

The settlement as to claimant Jacob Daco is for $40,000, with defendants Sargsyan and Bushnakyan through State Farm Insurance.    

The Proceeds are to be distributed as follows:
Medical Expenses:    -0-
Legal expenses advanced by counsel:   $182.90
Attorney’s Fees : $10,000.00 
Balance of Proceeds: $29,817.10   (To be invested in a single-premium deferred annuity, subject to withdrawal only on authorization of the court—Copy attached to Order). 

The petition seeks 25% of the gross settlement in attorneys’ fees, after expenses, for a total of $10,000 in fees. 
Under previous LASC Local Rule, fees could not exceed 25% without a showing of good cause. 

The California Rules of Court and Judicial Council have since expressly preempted local rules concerning this field, and the current local rules (Rule 4.115) do not address it.   See CRC Rule 7.955(d). 

Under CRC Rule 7.955, the court must now determine the “reasonable fees,” based on factors which must be addressed by the declaration of the attorney.   CRC Rule 7.955(a)(c). 

CRC Rule 7.955 provides:
“(a) Reasonable attorney's fees

 (1) 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.

(2) 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. 

(b) Factors the court may consider in determining a reasonable attorney's fee In determining a reasonable attorney's fee, the court may consider the following nonexclusive factors:

  (1) The fact that a minor or person with a disability is involved and the circumstances of that minor or person with a disability.

  (2) The amount of the fee in proportion to the value of the services performed.

  (3) The novelty and difficulty of the questions involved and the skill required to perform the legal services properly.

  (4) The amount involved and the results obtained.

  (5) The time limitations or constraints imposed by the representative of the minor or person with a disability or by the circumstances.

  (6) The nature and length of the professional relationship between the attorney and the representative of the minor or person with a disability.

(7) The experience, reputation, and ability of the attorney or attorneys performing the legal services.

  (8) The time and labor required.

  (9) The informed consent of the representative of the minor or person with a disability to the fee.

  (10) The relative sophistication of the attorney and the representative of the minor or person with a disability.

  (11) The likelihood, if apparent to the representative of the minor or person with a disability when the representation agreement was made, that the attorney's acceptance of the particular employment would preclude other employment.

  (12) Whether the fee is fixed, hourly, or contingent.

(13) If the fee is contingent:

  (A) The risk of loss borne by the attorney;

    (B) The amount of costs advanced by the attorney; and

    (C) The delay in payment of fees and reimbursement of costs paid by the attorney.

(14) Statutory requirements for representation agreements applicable to particular cases or claims. 

(c) Attorney's declaration 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. 

Here, the attorney’s declaration is sufficiently complete to establish entitlement to the fees sought.  The attorney explains that the attorney obtained the traffic collision report, obtained medical and billing records for each of the four clients, spoke with the clients to understand the impact of the collision, particularly in light of the fact that Fiona Daco was pregnant at the time of the collision, drafted a detailed settlement demand to the insurer, detailing the injuries, which resulted in State Farm globally tendering their per incident policy limits to be apportioned between the four Dacos, and prepared the minors’ compromise paperwork.  [See Attach. 13a, Patzkowski Decl. ¶¶ 5-9].  The declaration addresses each of the factors addressed in the court rule, and also indicates that the fee requested has been reduced from the 33-1/3% agreed to in the Fee Agreement to 25%.  [Patkowski Decl. ¶ 12]. 

The petition also attaches a Fee Agreement with Jason Daco, Jacob Daco’s father, agreeing to the one-third fee amount.  [Attach. 17a ¶ 1].  The showing is extremely thorough, and the court finds the fees justified. 

The settlement as to claimant Felicity Daco is for $60,000 with an additional $3,568.25 in medical payments with defendants Sargsyan and Bushnakyan through State Farm Insurance.    

The Proceeds are to be distributed as follows:
Medical Expenses:    $3,223.40
Legal expenses advanced by counsel:   $256.73
Attorney’s Fees : $16,250.00 
Balance of Proceeds: $43,838.12   (To be invested in a single-premium deferred annuity, subject to withdrawal only on authorization of the court). 

The petition seeks 25% of the gross settlement in attorneys’ fees, after expenses, for a total of $10,000 in fees. 

As discussed above, the petition is accompanied by a very thorough showing with respect to the reasonableness of these fees.  [Attach. 13a, Patzowski Decl. ¶¶ 3-9, 12; Attach. 17a, Fee Agreement ¶ 1].  The court finds the fees justified.

RULING:
[No Opposition].
Petition for Approval of Compromise of Claim or Action or Disposition of Proceeds of Judgment for Minor or Person with a Disability brought on behalf of claimant Jacob Daco is GRANTED.

The Order Approving Compromise of Claim or Action submitted with the Petition will be signed by the Court. 

Petition for Approval of Compromise of Claim or Action or Disposition of Proceeds of Judgment for Minor or Person with a Disability brought on behalf of claimant Felicity Daco is GRANTED.

The Order Approving Compromise of Claim or Action submitted with the Petition will be signed by the Court. 


DEPARTMENT D IS CONTINUING TO CONDUCT AND ENCOURAGE 
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