Garedakis v. Brentwood Union School District
4:14-cv-04799
N.D. Cal.Mar 23, 2020Background
- M.G., a minor, is the sole remaining plaintiff in this action and his guardian ad litem moved for court approval of a settlement.
- Parties agreed to a settlement that yields a net recovery of $115,000 for M.G.
- The guardian requests that the $115,000 be placed into a Special Needs Trust created under 42 U.S.C. § 1396p(d)(4)(A); a redacted trust instrument was submitted.
- Plaintiff’s counsel waived claims for attorney’s fees and costs, except an agreed $2,000 fee to the attorney who prepared the Trust.
- The court applied the Robidoux/Dacanay standard (district courts’ special duty under Fed. R. Civ. P. 17(c)) to review the fairness of the minor’s settlement, and considered a pending California appellate decision that could be dispositive.
- The court approved the settlement, authorized creation/funding of the Special Needs Trust, waived bond for the trustee, directed Nevada state-court venue for trust oversight, and authorized the guardian to execute settlement documents.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the settlement for the minor should be approved under the court's duty to protect minors | Settlement is fair and reasonable given case risks, potential adverse appellate outcome, and comparable recoveries | Unopposed / did not contest settlement approval | Approved — court finds settlement in minor's best interest and fair and reasonable |
| Whether the $115,000 should be placed into a Special Needs Trust under §1396p(d)(4)(A) | Trust protects benefits eligibility and is appropriate repository for the net recovery | Unopposed | Approved — court directs creation and funding of the Special Needs Trust |
| Whether the trustee must post bond | Not required; unnecessary burden given trust structure and oversight in Nevada | Unopposed | Approved — court waives bond requirement for Trustee |
| Whether attorney fees for trust preparation should be paid from the trust | Counsel waived general fees; $2,000 allowed for trust preparation work | Unopposed | Approved — Trustee to pay $2,000 to The Law Offices of Laura E. Stubberud |
Key Cases Cited
- Robidoux v. Rosengren, 638 F.3d 1177 (9th Cir. 2011) (district courts must independently assess fairness of minor plaintiffs' settlements and limit review of net recovery)
- Dacanay v. Mendoza, 573 F.2d 1075 (9th Cir. 1978) (establishes duty to safeguard minors and to inquire whether settlement serves minor's best interests)
- Big Oak Flat‑Groveland Unified Sch. Dist. v. S.C., 444 P.3d 665 (Cal. 2019) (California decision referenced as potentially dispositive on remand and relevant to plaintiff's risks)