Turman v. Ameritruck Refrigerated Transport, Inc.

125 F. Supp. 2d 444, 2000 U.S. Dist. LEXIS 19771, 2000 WL 1860119
CourtDistrict Court, D. Kansas
DecidedNovember 28, 2000
Docket99-2325-JWL
StatusPublished
Cited by11 cases

This text of 125 F. Supp. 2d 444 (Turman v. Ameritruck Refrigerated Transport, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Turman v. Ameritruck Refrigerated Transport, Inc., 125 F. Supp. 2d 444, 2000 U.S. Dist. LEXIS 19771, 2000 WL 1860119 (D. Kan. 2000).

Opinion

MEMORANDUM AND ORDER

LUNGSTRUM, District Judge.

This diversity suit arises from a motor vehicle accident which occurred on May 6, *446 1997, in Logan County, Kansas. Charles W. Turman (“decedent”) sustained fatal injuries when the vehicle that he was driving was struck by a truck which had not stopped at a stop sign. On July 23, 1999, decedent’s surviving spouse, employer, and insurance carrier filed suit, asserting wrongful death and property damage claims against the driver of the truck and the driver’s employer. The parties subsequently reached a settlement agreement on the wrongful death claim. On June 16, 2000, plaintiff Shelly Tur-man, decedent’s surviving spouse, filed a Motion for Approval of Settlement (Doc. 37), and the court scheduled a settlement hearing for July, 5, 2000. Before the settlement hearing, however, Charles J. Tur-man and Chanda B. Turman, the only natural children of decedent, moved to intervene in the wrongful death action (Doe. 42). The court granted the motion for intervention and local counsel for the intervening children participated in the settlement hearing. After receiving testimony supporting the reasonableness of the proposed settlement, a combination of cash and structured settlement with an estimated present value of $839,700 at the time of purchase, the court approved the same (Doc. 50). The court retained under advisement, however, the issue of how the settlement proceeds would be distributed. Specifically, the court directed the parties to submit briefs addressing the amount of the proceeds that should be used to pay attorneys fees and costs, the appropriate apportionment of the proceeds among decedent’s three heirs, and the allocation of the settlement proceeds between pecuniary and nonpecuniary damages (Doc. 50).

The parties have heeded the court’s directive and have filed their papers addressing these issues. Plaintiff has supplemented her original motion for approval of settlement (Doc. 37) with a single document entitled “Plaintiff Shelly Turman’s Submissions to the Court Regarding Attorneys Fees and Costs, Apportionment, and Allocation” (Doc. 83). The interven-ers, on the other hand, have submitted separate motions on each of the three pending issues: .(1) “Interveners’ Motion for Apportionment Among the Heirs” (Doc. 78), (2) “Interveners’ Motion for Approval of Attorney Fees and Costs” (Doc. 80), and (3) “Interveners’ Motion Regarding Workers Compensation and Subrogation” (Doc. 82) (addressing allocation). The court is now prepared to rule on these four motions. As discussed below, the court has not accepted the complete plan proposed by either party for distributing the settlement proceeds, but instead has considered the evidence submitted by the parties and fashioned a distribution plan which it believes to be just and reasonable.

Two additional motions are also pending before the court. The first is “Interven-ers’ Motion to Certify Questions of Law to the Kansas Supreme Court Pursuant to Kansas Statute 60-3201” (Doc. 110), which the court denies below. The second is “Plaintiff Turman’s Motion to Strike Pleadings” (Doc. 112), which asks the court to strike three of the interveners’ pleadings: (1) “Interveners’ Total Costs Statement and Professional Legal Services Activity and Time Statement” (Doc 108), (2) “Interveners’ Objection to Plaintiffs Costs and Attorney Fee Statement” (Doc. 107), and (3) “Interveners’ Motion to Certify Questions of Law to the Kansas Supreme Court Pursuant to Kansas Statute 60-3201” (Doc. 110). As discussed below, plaintiff Turman’s motion to strike is denied as to Document 107, and is moot as to Documents 108 and 110.

• Legal Standards

A federal court sitting in diversity must apply the substantive law of the state in which it sits, in this instance, the state of Kansas. See Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487, 496, 61 S.Ct. 1020, 85 L.Ed. 1477 (1941). The method of distributing the amount recovered in a wrongful death action “depends upon the law of the state which, by its wrongful *447 death statute, creates the cause of action.” Kent v. Kansas Power and Light Co., 123 F.Supp. 662, 664 (D.Kan.1954). The parties agree that “[t]his wrongful death claim was brought pursuant to the Kansas Wrongful Death Act (K.S.A. §§ 60-1901 et seq.).” (Doc. 37 at 2); (Doc. 89 at 2). Section 60-1905 of the Act, which governs distribution of proceeds recovered in wrongful death actions, states as follows:

The net amount recovered in any such action, after the allowance by the judge of costs and reasonable attorneys fees to the attorneys for the plaintiffs, in accordance with the services performed by each if there be more than one, shall be apportioned by the judge upon a hearing, with reasonable notice to all of the known heirs having an interest therein, such notice to be given in such manner as the judge shall direct. The apportionment shall be in proportion to the loss sustained by each of the heirs, and all heirs known to have sustained a loss shall share in such apportionment regardless of whether they joined or intervened in the action; but in the absence of fraud, no person who failed to join or intervene in the action may claim any error in such apportionment after the order shall have been entered and the funds distributed pursuant thereto.

The court will address the distribution issues currently pending in the order in which they are presented in § 60-1905.

* Attorneys Fees and Costs

Section 60-1905 provides that before apportioning the wrongful death proceeds the court may deduct “costs and reasonable attorneys fees to the attorneys for the plaintiffs, in accordance with the services performed by each if there be more than one.”

• Attorneys Fees

The parties adopt fundamentally different interpretations of how the language of § 60-1905 should govern the apportionment of attorneys fees in this case. Plaintiff argues that her attorney, Alan Higbie, should receive one-third of the gross settlement amount in accordance with the contingency fee agreement which she entered into with his law firm. She contends that such a fee is reasonable because the “recovery of the wrongful death proceeds in this case was accomplished through the sole efforts of [Mr. Higbie].” As counsel for the interveners, Michael Walker, took no active role in procuring the settlement, plaintiff asserts, he should be awarded no fee out of the gross proceeds. The interveners, on the other hand, move the court to first apportion the proceeds between the three heirs, and then “award attorneys fees based upon each party’s respective contingent fee percentage applied to that party’s apportionment pursuant to the respective Attorney-Client Fee Agreements.” The inter-veners assert that distributing attorneys fees in such a manner is necessary to ensure that they “pay only those attorney fees that they agreed to with their respective attorney,” and not the additional attorney fees of Mr. Higbie, who does not represent them.

The court agrees with plaintiff. The language of K.S.A. § 60-1905 contemplates awarding a fee out of the gross settlement proceeds for the services performed to create the fund.

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Bluebook (online)
125 F. Supp. 2d 444, 2000 U.S. Dist. LEXIS 19771, 2000 WL 1860119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/turman-v-ameritruck-refrigerated-transport-inc-ksd-2000.