The Estate of Elisa Serna v. County of San Diego

District Court, S.D. California·Decided September 10, 2024·No. 3:20-cv-02096·Unknown

Opinion

1 2 3 4 5 6 7 8 9 UNITED STATES DISTRICT COURT 10 SOUTHERN DISTRICT OF CALIFORNIA 11 12 THE ESTATE OF ELISA SERNA, et al., Case No. 20-cv-2096-BAS-DDL

13 Plaintiffs, ORDER: 14 v. 1. APPROVING MINOR’S COMPROMISE AND FINAL 15 COUNTY OF SAN DIEGO, et al., SETTLEMENT (ECF Nos. 509, 16 Defendants. 513) 2. GRANTING MOTIONS TO 17 SEAL (ECF Nos. 508, 512) 18 19 Pending before the Court are the parties’ Joint Petition for Order Approving 20 Settlement Involving a Minor and Distribution of Settlement Funds (ECF No. 509), and 21 two Motions to Seal (ECF Nos. 508, 512). Having reviewed the motions and supporting 22 documents, and for the reasons discussed below, the motions are GRANTED, and the 23 minor’s compromise is hereby APPROVED. 24 I. RELEVANT BACKGROUND 25 Elisa Serna was admitted to the Las Colinas Detention Facility on November 6, 26 2019. Plaintiffs allege that Elisa Serna did not receive proper medical care during her 27 incarceration and died as a result. Defendants deny Plaintiffs’ allegations. S.R.S. is Elisa 28 Serna’s biological child. S.R.S. was three years old when Elisa Serna died and is now eight 1 years old—a minor. S.R.S. proceeded in this action through her guardian, Paloma Serna, 2 who is Elisa Serna’s biological mother and is S.R.S.’s biological grandmother. Plaintiffs 3 filed this case on February 2, 2021, and since then have withstood motions to dismiss, 4 discovery disputes, and motions for final judgment. 5 After years of litigation, the parties have reached a settlement totaling $15 million. 6 Of the $15 million, the County will pay $14 million and Coast Correctional Medical Group 7 will pay $1 million. The plaintiffs have agreed to the following apportionment of the 8 settlement funds: 9 The Estate of Elisa Serna: 10 S.R.S.: 11 Paloma Serna: 12 Michael Serna: 13 The Estate of Elisa Serna has two beneficiaries: Brandon Honeycutt and S.R.S. 14 Honeycutt and S.R.S. are expected to take equal shares of the Estate’s allotment, pending 15 the approval of the probate court. S.R.S. will not have access to her funds until she is 16 eighteen years old. The awards to Michael and Paloma Serna, the adoptive parents of 17 S.R.S., are intended to ensure the family will be able to provide for S.R.S. until she reaches 18 the age of majority. The structure of this settlement will ultimately guarantee S.R.S. a 19 certain period annuity. 20 This structured settlement was reviewed and secured with a structured settlement 21 specialist at Ringler and Associates in San Diego: Manny Valdez. Further, S.R.S.’s 22 guardian, Paloma Serna, believes this to be a fair settlement. 23 Now, the parties jointly move the Court for approval of the minor’s compromise and 24 approval of the final settlement. Upon this Court’s order, the parties filed a copy of the 25 final settlement agreement in addition to their Motion for Approval of Minor’s 26 Compromise. (ECF Nos. 511, 513.) Having now reviewed the Motion and the Settlement 27 Agreement, the Court GRANTS the Motion for Approval of Minor’s Compromise. (ECF 28 1 No. 509.) Additionally, the Court GRANTS the parties’ Motions to Seal. (ECF Nos. 508, 2 512.) 3 II. LEGAL STANDARDS 4 A. Minor’s Compromise 5 Local Civil Rule 17.1 addresses settlements involving minors and states: “Order of 6 Judgment Required. No action by or on behalf of a minor or incompetent, or in which a 7 minor or incompetent has an interest, will be settled, compromised, voluntarily 8 discontinued, dismissed or terminated without court order or judgment.” CivLR 17.1(a). 9 “District courts have a special duty, derived from Federal Rule of Civil Procedure 10 17(c), to safeguard the interests of litigants who are minors.” Robidoux v. Rosengren, 638 11 F.3d 1177, 1181 (9th Cir. 2011). To carry out this duty, the court must “conduct its own 12 inquiry to determine whether the settlement serves the best interests of the minor.” Id. 13 (quoting Dacanay v. Mendoza, 573 F.2d 1075, 1080 (9th Cir. 1978)). In Robidoux, the 14 Ninth Circuit established that district courts reviewing the settlement of a minor’s federal 15 claim should “limit the scope of their review to the question whether the net amount 16 distributed to each minor plaintiff in the settlement is fair and reasonable, in light of the 17 facts of the case, the minor’s specific claim, and recovery in similar cases. Id. at 1181–82. 18 District courts should “evaluate the fairness of each minor plaintiff’s net recovery without 19 regard to the proportion of the total settlement value designated for adult co-plaintiffs or 20 plaintiff’s counsel—whose interests the district court has no special duty to safeguard.” Id. 21 at 1182 (citing Dacanay, 573 F.2d at 1078). “So long as the net recovery to each minor 22 plaintiff is fair and reasonable in light of their claims and average recovery in similar cases, 23 the district court should approve the settlement as proposed by the parties.” Id. 24 The Ninth Circuit limited its holding in Robidoux “to cases involving the settlement 25 of a minor’s federal claims” and did “not express a view on the proper approach for a 26 federal court to use when sitting in diversity and approving the settlement of a minor’s state 27 law claims.” Id. at 1179 n.2. 28 1 Under California law, the court is similarly tasked with evaluating the 2 reasonableness of the settlement and determining whether the compromise is in the best 3 interest of the minor. See A.M.L. v. Cernaianu, No. LA CV12-06082 JAK (RZx), 2014 4 WL 12588992, at *3 (C.D. Cal. Apr. 1, 2014). The California Probate Code “bestows 5 broad power on the court to authorize payment from the settlement—to say who and what 6 will be paid from the minor’s money—as well as direct certain individuals to pay it.” 7 Goldberg v. Superior Court, 23 Cal. App. 4th 1378, 1382 (Cal. Ct. App. 1994) (analyzing 8 Cal. Prob. Code § 3601). The Probate Code also “authorizes the court approving a 9 compromise of a minor’s disputed claim to “make a further order authorizing and directing 10 that reasonable expenses, . . . costs, and attorney’s fees, as the court shall approve and allow 11 therein, shall be paid from the money or other property to be paid or delivered for the 12 benefit of the minor.” Cal. Prob. Code § 3601(a). 13 District courts are split on whether the Robidoux standard applies to the evaluation 14 of a minor’s compromise regarding state-law claims. See DeRuyver v. Omni La Costa 15 Resort & Spa, LLC, Case No.: 3:17-cv-0516-H-AGS, 2020 WL 563551, at *2 n.1 (S.D. 16 Cal. Feb. 4, 2020) (citing cases). However, where the outcome is the same, the court need 17 not resolve whether Robidoux or state rules apply. Castro v. United States, Case No. 19- 18 cv-02240-AJB-JLB, 2022 WL 594545, at *2 (S.D. Cal. Feb. 28, 2022) (collecting cases); 19 see also A.M.L., 2020 WL 7130506, at *2 (finding it unnecessary to resolve whether 20 Robidoux or state rules applied to the approval of a minor’s compromise where the 21 proposed settlement would satisfy both standards). 22 Courts in this district exercising diversity jurisdiction over state-law claims have 23 found Robidoux persuasive in providing a framework for evaluating the reasonableness 24 and fairness of the settlement. See DeRuyver, 2020 WL 563551, at *2; see also Lobaton 25 v. City of San Diego, Case No. 3:15-cv-1416-GPC-DHB, 2017 WL 2610038, at *2 (S.D. 26 Cal.

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