WILLIAM B. SHUBB, District Judge.
Tyeshina Sykes ("Sykes") initiated this action on behalf of herself and J.S., a minor, against defendants Donald James Shea ("Shea") and Kunkel Trucking, Inc. ("Kunkel") alleging negligence based personal injury claims related to a motor vehicle collision involving a truck driven by Shea and owned by Kunkel. Johnny Nash was appointed as guardian ad litem for J.S. Presently before the court is J.S.'s petition for approval of minor's compromise. (Docket No. 61.)
Under Eastern District of California's Local Rules, the court must approve the settlement of the claims of a minor. E.D. Cal. L.R. 202(b). The party moving for approval of the settlement must provide the court "such . . . information as may be required to enable the Court to determine the fairness of the settlement or compromise."
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The Local Rules require that in actions in which the minor is represented by an appointed representative pursuant to state law, the settlement must first be approved by the state court having jurisdiction over the personal representative. E.D. Cal. Local R. 202(b)(1). Here, the court notes that the Settlement Agreement at issue was first approved by the Honorable Judge Russell L. Hom of the Sacramento Superior Court. (
The settlement will result in the payment of $87,500 to J.S. J.S.' attorneys intend to take 25%, or $21,875.00, of J.S.' settlement as payment for their services. It "has been the practice in the Eastern District of California to consider 25% of the recovery as the benchmark for attorney's fees in contingency cases involving minors."
Based on all of these considerations, the court finds that the settlement is fair and reasonable and in the best interests of the minor child.
IT IS THEREFORE ORDERED that plaintiff's Motion to Approve Minor's Compromise (Docket No. 61) be, and the same hereby is, GRANTED.
IT IS FURTHER ORDERED that:
1. The gross amount or value of the settlement or judgment in favor of plaintiff J.S. is $87,500.00
2. Fees and expenses shall be paid by one or more checks or drafts, drawn payable to the order of plaintiff's guardian ad litem Johnny Nash and plaintiffs' attorney, if any, or directly to third parties entitled to receive payment identified in this order for the following items of expenses or damages, which are hereby authorized to be paid out of the proceeds of the settlement or judgment:
(a) Attorney's fees in the total amount of $21,875.00 payable to Banafsheh, Danesh, and Javid, P.C.;
(b) Reimbursement in the amount of $24,275.90 for necessary costs incurred in the prosecution of this matter payable to Banafsheh, Danesh, and Javid, P.C.;
(c) Medical, hospital, ambulance, nursing and other expenses in the amount of $565.98 payable to Department of Health Care Services;
(d) Medical, hospital, ambulance, nursing and other expenses in the amount of $1,791.00 payable to NCO Financial Services;
(e) Payment to J.M. in the total amount of $38,993.02 payable to Pacific Life & Annuity Services, Inc. to fund a structured settlement annuity and to fund period payments.