Judge: Salvatore Sirna, Case: 23PSCV00339, Date: 2023-09-29 Tentative Ruling

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Case Number: 23PSCV00339    Hearing Date: September 29, 2023    Dept: G

Petitioner Alma Ruelas’s Petition for Approval of Compromise of Claim or Action or Disposition of Proceeds of Judgment for Minor or a Person with a Disability

Respondent: NO OPPOSITION (Due 9/7/2023)

Petitioner Jaqueline Lopez’s Petition for Approval of Compromise of Claim or Action or Disposition of Proceeds of Judgment for Minor or a Person with a Disability

Respondent: NO OPPOSITION (Due 9/7/2023)

TENTATIVE RULING

Petitioner Alma Ruelas’s Petition for Approval of Compromise of Claim or Action or Disposition of Proceeds of Judgment for Minor or a Person with a Disability is GRANTED.

Petitioner Jaqueline Lopez’s Petition for Approval of Compromise of Claim or Action or Disposition of Proceeds of Judgment for Minor or a Person with a Disability is GRANTED.

BACKGROUND

This is a personal injury action. In May 2021, Plaintiff Edward Salazar Murrieta was driving a vehicle on Interstate 210 in Glendora with three passengers including Plaintiffs Alma Ruelas, Nevaeh Murrieta[1], and Breeana Murrieta. At the same time, while Defendant Antonio Reyver Campos-Perez was operating a vehicle owned by Defendants Service Trans LLC and Estrellita Peralta, Plaintiffs allege Campos-Perez rear-ended them.

On February 3, 2023, Plaintiffs filed a complaint against Campos-Perez, Service Trans, Peralta, and Does 1-20, alleging the following causes of action: (1) general negligence and (2) motor vehicle negligence.

On August 11, 2023, Ruelas filed the present petition on the behalf of Breeana. On the same day, Jaqueline Lopez filed the present petition on the behalf of Nevaeh. A hearing on the petitions is set for September 20, 2023, with a OSC Re: Dismissal set for October 3.

ANALYSIS

Plaintiffs petition for the court’s approval of a $993,186.89 settlement reached between Defendants and Plaintiffs.

Legal Standard

An enforceable settlement of a minor’s or incompetent’s claim can only be consummated with court approval. (Prob. Code, §§ 2504, 3500, 3600 et seq.; Code Civ. Proc., § 372.) For this purpose, a petition for approval must be presented to the court and until it is granted, there is no final settlement. (Scruton v. Korean Air Lines Co. (1995) 39 Cal.App.4th 1596, 1603-1606.) Any settlement agreement therefore is voidable by the minor’s guardian ad litem. (Id., at p. 1606.)

Probate Code section 3600, et seq., governs how the settlement proceeds are to be paid. Pursuant to Probate Code section 3601, the order shall approve payment of reasonable expenses from the settlement as follows:

The court making the order or giving the judgment referred to in Section 3600, as a part thereof, shall make a further order authorizing and directing that such reasonable expenses (medical or otherwise and including reimbursement to a parent, guardian, or conservator), costs, and attorney’s fees, as the court shall approve and allow therein, shall be paid from the money or other property to be paid or delivered for the benefit of the minor or incompetent person. (Prob. Code, § 3601, subd. (a).)

In cases pursuant to Probate Code section 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 7.955, subd. (a)(1).) In doing so, “[t]he 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 7.955, subd. (a)(2).)

Discussion

The present action involves personal injuries arising from an automobile accident on Interstate 210 in Glendora. Breeana suffered soft tissue injuries to her right shoulder and lower back. Nevaeh suffered soft tissue injuries to her left rib.

Pursuant to the settlement agreement reached between the parties, Defendants will pay a total of $993,186.89 to Plaintiffs with Breeana receiving $2,000 and Nevaeh receiving $1,000.

With regards to attorney fees, a retainer agreement is attached to the Petitions as Attachment 17a. In it, the attorney fees for Plaintiffs will be 33% of the gross recovery if a lawsuit is filed. Thus, Plaintiffs’ counsel requests $500 in attorney fees from Breeana (25% of total recovery) and $250 from Nevaeh (25% of total recovery). For Breeana, counsel claims costs in the amount of $30 for medical and billing records. For Nevaeh, counsel claims costs in the amount of $40.64 for medical and billing records and postage.

In summary, Breeana will receive $2,000 minus $500 in attorney fees and $30 in costs for a total net recovery of $1,470. Nevaeh will receive $1,000 minus $250 in attorney fees and $40.54 in costs for a total net recovery of $709.46. The petitions request the funds be paid or delivered to Breeana and Nevaeh’s parents without bond pursuant to the conditions of Probate Code sections 3401 and 3402.

Based on the petitions, the court finds the amounts awarded to Breeana and Nevaeh are reasonable. The court also finds counsel’s recovery of fees in the amount of 25% is reasonable. Last, the court finds the request to deposit the funds with the parents, in trust for Breeana and Nevaeh, is proper as the amounts paid do not exceed $5,000. (Prob. Code, § 3401, subd. (c).)

CONCLUSION

Based on the foregoing, Plaintiffs’ petitions are GRANTED.