Liberty Life Assurance Company of Boston v. Ramos
2:11-cv-00554
D. Ariz.Feb 13, 2012Background
- Consolidated interpleader action over Gilbert Ramos's 401(k) plan and Liberty Life life insurance proceeds.
- K.T., a minor, represented by conservator J.R. Thompson, seeks settlement approval; Marivel Ramos and Maria Gonzalez seek guardianship/conservatorship for Maria I. Gonzalez.
- Total interpled funds as of Feb 7, 2012: $151,105.52, with proposed distribution: KT $58,105.52, Maria Gonzalez $16,500, Marivel Ramos $26,500, Devon Ramos $50,000.
- AMF 401(k) terms: Sandra Ramos would be automatic beneficiary upon Gilbert’s death; KT is heir to Sandra’s estate, affecting 401(k) proceeds (~$48,159.32 to KT).
- Liberty Life policy: initial beneficiary Marivel Ramos; Sandra’s spouse status and community property rights disputed over proceeds ($100,000).
- Court considered attorney’s fees requests, including fees for Marivel, Maria, and Christopher Dunagan; Friedlander’s fee request found deficient under Local Rules and not awarded pending proper filing; Never Again Foundation represents KT.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the settlement is fair and reasonable for KT and Maria Gonzalez | KT asserts proportional, fair distribution considering minor/incapacitated status. | Defendants contend the compromise avoids costly litigation and furthers protected parties' interests. | Settlement approved as fair and reasonable. |
| Proper representation of a minor and an incapacitated person in federal court | Representation by guardian ad litem/state conservator complies with Rule 17; cannot proceed with mere attorney for ward. | State-appointed conservators/guardians are appropriate representatives; federal court may ensure best interests. | Guardians/ad litem roles recognized; court retains discretion to safeguard wards. |
| Entitlement to Gilbert Ramos's Liberty Life insurance proceeds | KT may be entitled under Arizona community property laws if proceeds are derived from community funds. | Marivel and Maria contend contract-based and/or slayer/statutory defenses apply; KT's claims unlikely to overtake beneficiary designations. | Court declines to resolve all contested theories here; approves settlement distribution, recognizing KT’s potential interest but not entering final life-insurance ownership adjudication. |
| Attorney's fees for counsel representing KT and others | Fees reasonable under prevailing market rates; Never Again Foundation work justified; requested $14,526.38. | Friedlander’s fee application deficient under LRCiv 54.2; no award until proper filing; other fee issues unresolved. | Court grants fees only for KT’s counsel via sealed motion; Friedlander fees not awarded until compliant. |
Key Cases Cited
- Robidoux v. Rosengren, 638 F.3d 1177 (9th Cir. 2011) (court must ensure minor's settlement serves best interests)
- Dacanay v. Mendoza, 573 F.2d 1075 (9th Cir. 1978) (guardian ad litem required for minor/incompetent in litigation)
- In re Guardianship Sleeth, 226 Ariz. 171, 244 P.3d 1175 (Ariz. Ct. App. 2010) (guardianship duties and fiduciary responsibilities; cost considerations)
- In re Estate of Agans, 196 Ariz. 367, 998 P.2d 449 (Ariz. Ct. App. 1999) (community property rights in life insurance proceeds)
- In re Estate of Alarcon, 149 Ariz. 336, 718 P.2d 989 (Ariz. 1986) (survivor spouse rights to life insurance where community funds used)
- 30.64 Acres of Land, More or Less, Situated in Klickitat County, State of Washington, 795 F.2d 893 (9th Cir. 1986) (federal court authority to appoint/modify guardians ad litem; protection of ward)