MYRON H. THOMPSON, District Judge.
This lawsuit arises out of a police officer's fatal shooting of Emerson Crayton, Jr., outside of a Huddle House restaurant in Alexander City, Alabama in 2014. The issue before the court is whether it should approve two settlements that would benefit decedent Crayton's minor child.
The plaintiffs are Kolea Burns (administrator
The parties have presented two settlements to the court: one between Burns and the Huddle House defendants, and the other between Burns and the Alexander City defendants. Because both settlements are for the benefit of the minor, G.C., the parties have filed a motion for court approval of the settlements. For the reasons that follow, the motion will be granted and the settlements approved.
"Alabama law requires that a court hold a fairness hearing before a minor plaintiff's case may be settled."
This suit arises out of events that occurred at the Huddle House in Alexander City, Alabama in the early morning hours of March 8, 2014. Plaintiffs allege that Crayton was waiting for his meal when he got into a disagreement with a Huddle House waitress, who had accused him of being too loud. After Crayton exchanged words with another waitress who had involved herself in the disagreement, he got up to leave, and witnesses report that he stated, "Y'all can keep my money, and keep my food; I'm leaving."
After being handed his food, Crayton went to his car in the Huddle House parking lot. In the meantime, after a Huddle House employee had contacted the Alexander City police department, Officer Maness was summoned to the restaurant. The plaintiffs allege that several Huddle House employees falsely stated to Maness that Crayton was carrying a gun, had threatened to shoot someone, or had threatened to blow up the restaurant. Maness contends that he did not hear these allegations.
Crayton was backing out of his parking space at the Huddle House when Maness attempted to stop him. Maness then fired five or six bullets into Crayton's car, killing him.
The plaintiffs have pursued several claims in connection with Crayton's death. Against the Alexander City defendants, they brought a state wrongful-death claim and two federal claims, pursuant to 42 U.S.C. § 1983, under the Fourth and Fourteenth Amendments.
Against the Huddle House defendants, they brought state wrongful-death and negligent-failure-to-train claims. They also brought federal claims, including a claim for race discrimination in places of public accommodation under Title II of the Civil Rights Act of 1964 (42 U.S.C. § 2000a), and, pursuant to § 1983, a claim for race discrimination in contractual dealings under 42 U.S.C. § 1981.
Some of these claims and G.C. were dismissed, leaving only estate-administrator Burns to pursue the remaining claims against both sets of defendants.
Administrator Burns reached a settlement with the Huddle House defendants and those defendants were dismissed
Administrator Burns later reached a settlement with the Alexander City defendants. This settlement is in the amount of $500,000. The contingent-fee arrangement is the same as in the Huddle House settlement; having already paid the $28,500 litigation expenses, Burns, as administrator, should receive $250,000 and the attorneys will split the remaining $250,000 as fees.
Because the settlements were, in fact, solely for the benefit of G.C. as Crayton's only heir, the court granted a motion to amend the complaint to reinstate G.C. as a plaintiff for the limited purpose of considering the proposed settlements. At the same time, it appointed Linda Benson as C.G.'s guardian ad litem and one of the plaintiffs' attorneys, Eric Hutchins, as conservator. A pro ami hearing was held on May 17, 2016.
The court will first address whether it should even consider the settlements for approval. And, if so, it will then discuss whether it should approve them.
Two aspects of the Huddle House settlement warrant discussion: the nature of the parties'
The timing of the parties' request does not appear to be an obstacle to the court's consideration of the proposed settlement. The parties have jointly expressed an interest in having the court consider the proposed settlement, and even a retroactive approval by the court can ensure that the interests of the minor and the other parties involved are protected. That the funds have already been partially distributed does not counsel against consideration of the settlement agreement either. The court will therefore reinstate the Huddle House defendants as parties for the limited purpose of the court's consideration of their settlement.
The court now turns to the nature of the claim at issue in the Huddle House settlement. The sole claim for that settlement was the plaintiffs' state wrongful-death claim. The guardian ad litem refers to this court's opinion in
As to the settlement with the Alexander City defendants, this court's decision in
The court now turns to whether the proposed settlements warrant its approval. For reasons that follow, they do.
First, Burns made a logical decision to settle. This case involved complicated issues that would yield uncertain results on summary judgment and at trial. As to the federal claim, there are these questions: whether the plaintiffs could overcome Officer Maness's qualified-immunity defense,
Additionally, the litigation, through trial and a possible appeal, could have lasted for several more years. Burns would have faced considerable legal obstacles over an extended period of time if she had chosen to proceed with this litigation. Thus, given these realities, her decision to settle was rational.
Second, the settlement amounts are reasonable. At the pro ami hearing, Burns testified that, after pursuing this litigation for over two years and attending numerous depositions, she was satisfied with the settlement amounts obtained. The guardian ad litem agreed that the settlement amounts are fair and that the settlements are in the best interests of the minor. After an independent review of the record, the court concurs with these assessments.
Third, to determine the reasonableness of attorneys' fees, the court must consider the factors set forth in
In sum, the settlements are fair, just, and reasonable and in the best interests of the minor.
The plaintiffs also request that the court order payment of a 5 % personal-representative fee—to be taken from the settlement funds—to Burns for her work in pursuing this litigation in her capacity as administrator of Crayton's estate. At the pro ami hearing, Burns testified, and her attorneys confirmed, that she expended considerable effort toward the resolution of this case, including attending depositions and locating witnesses. While the court recognizes the amount of time and energy Burns has devoted to pursuing this case, there is no basis for awarding such a fee under existing law.
In
In proposing this alternative, however, Justice Bolin made clear that his proposal was just that: a "proposal," a "potential alternative." Indeed, he expressly "concur[red] in the main opinion and the result reached therein."
Moreover, it cannot be overlooked that, while Burns is not recovering a "fee" for her work in this case, she is still being greatly rewarded: All the time and energy she has expended has been for the benefit of her beloved daughter.
Accordingly, it is ORDERED, ADJUDGED, and DECREED as follows:
(1) The judgment dismissing the Huddle House defendants (doc. no. 89) is vacated. The Huddle House defendants—D&L Foods, Inc., Daniel Yates, Lynn Patterson, LeGina Watson, and Huddle House, Inc.—are reinstated.
(2) The motion to approve the settlement agreement (doc. no. 95) is granted.
(3) The "Settlement Agreement and Release of All Claims" with Alexander City defendants (doc. no. 95-1) is approved.
(4) The "Pro Tanto Release and Settlement" with the Huddle House defendants (doc. no. 101) is approved.
(5) The guardian ad litem, Honorable Linda Benson, is entitled to a fee of $4,000.00 to $5,000.00. The guardian ad litem fee is to be paid out of the plaintiffs' counsel fee recovery.