In re the Settlement/Guardianship of A.G.M.

154 Wash. App. 58
CourtCourt of Appeals of Washington
DecidedJanuary 5, 2010
DocketNo. 37734-9-II
StatusPublished
Cited by4 cases

This text of 154 Wash. App. 58 (In re the Settlement/Guardianship of A.G.M.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Settlement/Guardianship of A.G.M., 154 Wash. App. 58 (Wash. Ct. App. 2010).

Opinion

Hunt, J.

¶1 Rubinstein Law Offices appeals the superior court’s order reducing attorney fees for settling its minor client’s, AGM, personal injury claim. Rubinstein argues that (1) under the contingent fee agreement, it was entitled to $33,333.33 (one-third of the gross settlement amount)1 and (2) the superior court erred by using the lodestar method and awarding only $15,000.00 in attorney fees. Finding no abuse of discretion, we hold that the superior court’s attorney fee award was reasonable and affirm. We also grant attorney fees and costs on appeal to the settlement guardian ad litem (SGAL). Holding that this appeal is frivolous, we order Rubinstein to pay the SGAL’s attorney fees and costs on appeal. RAP 18.9(a).

FACTS

I. Background

¶2 In March 2006, a vehicle drove through a red light and struck the car in which minor sisters, 3-year-old AGM and 11-month-old LMM, were riding with their parents and another adult. Police cited the at fault driver for negligent driving.

¶3 AGM, sitting “double belted” on her mother’s lap, suffered severe injuries that required hospitalization in the pediatric intensive care unit. Clerk’s Papers (CP) at 34. Following her release from the hospital, she had several follow-up visits. Since that time, she has occasionally exhibited minor symptoms, such as loss of hair and stomachaches, arising from the injuries sustained during the accident. The billed costs for AGM’s medical care exceeded $68,000.2

[63]*63¶4 LMM, in a child car seat, suffered a small cut in her eyelid. Examined and released from the hospital the same day, she required no follow-up care. The billed costs for LMM’s care totaled $3,135.3

¶5 AGM and LMM’s parents hired Rubinstein Law Offices to represent all of the vehicle’s occupants, including AGM and LMM. On AGM and LMM’s behalf, the parents signed a contingent fee agreement promising to pay Rubinstein one third of the gross settlement amount, subject to the clients’ ability to petition the court for a hearing to determine whether the fee was reasonable. In October, Rubinstein submitted to the at-fault driver’s insurance company, State Farm Automobile Insurance Company, a three-page demand letter for the claims of all five plaintiffs, only seven lines of which addressed AGM’s injuries and claim.

II. Procedure

A. Settlement and SGAL

¶6 On November 15, 2006,4 State Farm offered to settle AGM’s claim for $100,000, the at-fault driver’s policy limit.5 This settlement offer was accepted, apparently by Rubinstein the same day, pending the superior court’s approval. State Farm later offered to settle LMM’s claim for $4,500.

¶7 On November 30, State Farm petitioned the superior court for appointment of an SGAL “to investigate the reasonableness and adequacy of [State Farm’s] offer” to AGM, as [64]*64Superior Court Special Proceedings Rule (SPR) 98.16W required. CP at 1. State Farm later amended its petition to ask that the SGAL represent both minors. The superior court appointed attorney Danny Lazares as SGAL and ordered him to investigate and to prepare a written report addressing, among other things, the reasonableness of the proposed settlements and Rubinstein’s requested fees and costs for representing AGM and LMM.

¶8 The SGAL investigated, reported to the superior court, opined that both settlement offers were reasonable, and recommended that the superior court approve them. Also opining that Rubinstein’s requested attorney fees for LMM were reasonable, the SGAL recommended that the superior court approve them because, unlike AGM’s policy limit offer, Rubinstein had negotiated with State Farm to reach an acceptable settlement offer for LMM. The SGAL further noted that Rubinstein had done more work on LMM’s claim than on AGM’s claim, for which Rubinstein was requesting significantly higher attorney fees.6

¶9 In contrast, the SGAL opined that a lesser attorney fee award would be “fair compensation” for Rubinstein’s representation of AGM. CP at 40. The SGAL reasoned that if the superior court did not reduce Rubinstein’s fees, (1) the net amount AGM would receive after paying Rubinstein would be insufficient to compensate her for her injuries; and (2) approving his requested attorney fees, one third of all gross sums recovered under the parties’ contingent fee agreement, “would represent a significant windfall to [Rubinstein].” CP at 39.

¶10 In support of his recommendation to reduce Rubinstein’s fees, the SGAL explained:

I was told by the adjuster that the bulk of Mr. Rubinstein’s time was spent on the claims of the adults, and that the children’s claims, especially [AGM’s], were settled quite quickly.
[65]*65Based upon my investigation and examination of the work done by the minor’s attorney and staff concerning the claim of this child, it is my estimate that no more than a few hours of attorney time and a few more hours of staff time were involved in this claim to date. I am convinced that the offer of policy limits was made by the adjuster once she confirmed the hospital discharge assessment and the amount of medical specials.
Taking into consideration the desire to see to it that the minor is fully compensated, while also considering the novelty of the claim or lack thereof, as well as the time devoted to settlement of the claim, it is my opinion that attorney fees for Mr. Rubenstein [sic] of between $10,000.00 and $12,000.00 would represent fair compensation.

CP at 40. The SGAL further noted, that his own fees were “higher than [he] would normally have anticipated” because it was difficult to obtain the necessary documents from Rubinstein in a timely manner. CP at 45.

B. Initial Settlement Approval Hearing

¶11 Rubinstein attorney Yulia Khorun submitted to the superior court, but not to the SGAL or to State Farm, a sworn declaration explaining the services that Rubinstein and she had provided to AGM, LMM, and the adults injured in the accident. Khorun declared that Rubinstein had (1) “monitored [AGM’s and LMM’s] treatment,” (2) reviewed medical records, (3) negotiated with State Farm, and (4) negotiated discounts for the medical services AGM and LMM received. CP at 57-58. Khorun also declared, “[M]y office and I filed the Petition to appoint the SGAL, [and] prepared and sent documentation requested by the SGAL.” CP at 57. But it was State Farm, not Rubinstein, who filed the petition to appoint the SGAL.

¶ 12 The settlement approval hearing was initially set for 9:00 am on March 28, 2008. When the court began the hearing, no Rubinstein attorney was present to represent AGM and LMM. Khorun called the court to request permis[66]*66sion to appear by telephone “because she was unable to leave her home [in Issaquah] due to snow.” Report of Proceedings (RP) (Mar. 28, 2008) at 5, 9. But when the superior court’s judicial assistant called Rubinstein Law Offices in Bellevue to have the office relay a message to Khorun at her home, the judicial assistant discovered that Khorun was in the office, where there was no snow. The superior court then reset the hearing for 1:30 pm that afternoon and ordered Khorun to appear in person with her clients.

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Bluebook (online)
154 Wash. App. 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-settlementguardianship-of-agm-washctapp-2010.