1 2 3 UNITED STATES DISTRICT COURT 4 NORTHERN DISTRICT OF CALIFORNIA 5 SAN JOSE DIVISION 6 7 V.G.M., et al., Case No. 19-cv-08007-BLF

8 Plaintiffs, ORDER APPROVING MINOR’S 9 v. COMPROMISE

10 CITY OF SALINAS, et al., [Re: ECF 51] 11 Defendants.

12 13 Plaintiffs have filed a motion for approval of a minor’s compromise. See Mot., ECF 51. 14 Defendants do not oppose this motion. See Statement of Non-Opposition, ECF 54. The Court 15 GRANTS the motion. 16 “District courts have a special duty, derived from Federal Rule of Civil Procedure 17(c), to 17 safeguard the interests of litigants who are minors.” Robidoux v. Rosengren,

, 1181 18 (9th Cir. 2011). “In the context of proposed settlements in suits involving minor plaintiffs, this 19 special duty requires a district court to conduct its own inquiry to determine whether the 20 settlement serves the best interests of the minor.”

(quotation marks and citation omitted). The 21 district court’s inquiry is limited to considering “whether the net recovery of each minor plaintiff 22 is fair and reasonable, without regard to the amount received by adult co-plaintiffs and what they 23 have agreed to pay plaintiffs’ counsel.”

. 24 Upon concluding that a minor’s net recovery is fair and reasonable, district courts within 25 the Ninth Circuit commonly order that such funds be deposited into a blocked account for the 26 minor’s benefit. See, e.g. Lily v. Cooper, No. 19-cv-745-DMS (AGS),

, at *4 27 (S.D. Cal. Sept. 25, 2020) (“Counsel shall, within 45 days after approval of the minors’ 1 into blocked accounts as required by this Order.”); Estate of Sauceda v. City of N. Las Vegas, No. 2 2:11-cv-02116-GMN-NJK,

, at *1 (D. Nev. Apr. 30, 2020) (approving minor’s 3 compromise and ordering that funds “shall be deposited into a blocked trust account with proof of 4 such deposit provided to the Court within 60 days of this Order”); S.V. by & through Valencia v. 5 Delano Union Elementary Sch. Dist., No. 1:17-cv-00780-LJO-JLT,

, at *3 6 (E.D. Cal. June 27, 2019), report and recommendation adopted, No. 1:17-cv-00780-LJO-JLT, 7

(E.D. Cal. July 19, 2019) (“The money will be deposited in a blocked account 8 for the child’s benefit.”). 9 Defendants have agreed to pay a total settlement amount of $2,000,000. Mot. 2. The 10 minor’s share of the settlement is 65% or $1,300,000.00.

The net settlement to the minor, 11 minus fees and costs, is $973,900.52. Id. 2-3. Of that amount, $98,900.52 shall be placed in an 12 interest-bearing blocked account at a FDIC-insured financial institution for the benefit of the 13 minor. Id. 3. Upon funding, the institution shall immediately disburse a $7,500.00 cashier’s check 14 to the minor’s guardian ad litem, Ernesto Daniel Rodriguez, made payable to “Ernesto Daniel 15 Rodriguez for the benefit of [minor plaintiff]”. Id. 3. The balance of the funds will be paid to the 16 minor on February 8, 2037, her 18th birthday. Id. 3. 17 The remaining $875,000 of the minor’s net settlement will be paid through a structured 18 settlement annuity policy from United Omaha Life Insurance Company. Mot. 4. The payments 19 shall be dispersed as follows: 20 a. $500.00 payable monthly to Ernesto Daniel Rodriguez for the benefit of the minor, 21 guaranteed for 16 years, beginning 02/15/2021, with the last guaranteed payment on 22 01/15/2037. (To be used to pay for daily living expenses, day care and/or private 23 school tuition); 24 b. $600.00 payable monthly to Ernesto Daniel Rodriguez for the benefit of the minor, 25 guaranteed for 9 years, beginning 08/01/2024, with the last guaranteed payment on 26 07/01/2033. (To be used to pay for daily living expenses, extra-curricular activities, 27 and/or private school tuition); 1 guaranteed for 4 years, beginning 08/01/2033, with the last guaranteed payment on 2 07/01/2037. (To be used to pay for daily living expenses, extra-curricular activities, 3 and/or private high school tuition); 4 d. $3,000 payable monthly to the minor, guaranteed for 12 years, beginning 02/08/2037, 5 with the last guaranteed payment on 01/08/2049; 6 e. $50,000 payable annually to the minor, guaranteed for 4 years, beginning 08/01/2037, 7 with the last guaranteed payment on 08/01/2040; 8 f. $50,000 payable to the minor on 02/08/2041 (Age 22), guaranteed; 9 g. $100,000 payable to the minor on 02/08/2044 (Age 25), guaranteed; 10 h. $150,000 payable on 02/08/2049 (Age 30), guaranteed; 11 i. $191,506.22 payable on 02/08/2051 (Age 32), guaranteed 12 Mot. 4-6. 13 The Court finds this proposed distribution to be fair and reasonable to the minor plaintiff, 14 as required under Robidoux, and GRANTS the motion. 15 ORDER 16 The motion for approval of minor’s compromise (ECF 51) is GRANTED. 17 The Court APPROVES the settlement of the minor’s claims against Defendants, as 18 compromised pursuant to the terms of the settlement reached among the parties, and as further 19 described in the motion for approval of minors’ compromise (ECF 51) and this order. 20 Plaintiffs’ counsel SHALL deposit the $98,900.52 into a blocked account for the minor’s 21 benefit, and Defendants SHALL pay the remaining $875,000 for purchase of the annuity. The 22 receipt for purchase of the annuity is to be filed with the Court within 60 days, as set out in 23 paragraph 19 of the motion. Plaintiffs’ counsel shall inform the Court when the deposit into the 24 blocked account is completed. 25 The Court APPROVES the distribution of the attorneys’ fees and costs to counsel as set 26 forth in the motion. 27 1 IT IS SO ORDERED. 2 3 || Dated: March 30, 2021 kom Lh ham tn) 4 ee BETH LABSON FREEMAN 5 United States District Judge 6 7 8 9 10 11 a 12

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