VICTOR BORJAS ET AL VS CITY OF LOS ANGELES ET AL

Tentative Rulings

Case Number: BC699924    Hearing Date: February 04, 2020    Dept: 31

REQUEST FOR APPROVAL OF MINORS' COMPROMISES IS GRANTED.

Background

This habitability and lead exposure case brought by Plaintiffs Victor Borjas; Victor Mateo Borjas, a minor by and through his Guardian Ad Litem Ruth Castellon; Camila Borjas, a minor by and through her Guardian Ad Litem Ruth Castellon; and Ruth Castellon arises out of Plaintiffs’ tenancy at the property located at 2306 Kent Street allegedly owned and managed by Defendants Ingenious Asset Group, Loretta Bradley, Michael Bradley, and the Michael and Loretta Bradley Trust. The First Amended Complaint (“FAC”) asserts causes of action for:

1. Violation of Civil Code § 1942.4;

2. Tortious Breach of the Warranty of Habitability;

3. Private Nuisance;

4. Business & Professions Code § 17200, et seq.;

5. Negligence;

6. Premises Liability;

7. Violation of Los Angeles Municipal Code § 151.05.1, et al.;

8. Negligent Infliction of Emotional Distress; and

9. Intentional Infliction of Emotional Distress.

The FAC alleges that Plaintiffs endured uninhabitable conditions and that Plaintiff Camila Borjas was exposed to lead based paint. Plaintiff Camila is alleged to be the only family member who had positive lead levels in her blood stream. Plaintiff Victor Mateo Borjas is alleged to have been born in September of 2017, after the family had been removed from the property and remediation and repairs had been performed on the property.

On December 4, 2019, a Notice of Settlement of Entire Case was filed and on January 10, 2020, the instant Petitions to Approve Minor’s Compromise were filed.

Legal Standard

Petitions to approve minors’ compromise are governed by California Rules of Court, Rules 7.950, et seq. and Probate Code sections 3500 and 3600 et seq. If an action is pending and a settlement is effected prior to trial, the minor’s compromise must be approved by the court. (Code Civ. Proc., § 372.) The trial court is authorized to approve and allow payment of reasonable expenses, costs, and attorney fees in an action concerning the compromise of a minor’s claim. (Prob. Code, § 3601(a); Curtis v Estate of Fagan (2000) 82 Cal.App.4th 270, 277-279; see also Code Civ. Proc., § 373.5 [“The reasonable expenses of the guardian ad litem, including compensation and counsel fees, shall be determined by the court and paid as it may order, either out of the property or by plaintiff or petitioner”].)

Discussion

Camila Borjas, a minor, by and through her Guardian Ad Litem, Ruth Castellon, has agreed to settle her claims with Defendants in exchange for $300,000.00. If approved, $99,000.00 will be used for attorney’s fees and $19,017.58 will be used for litigation costs, leaving $181,982.42 to be deposited into a blocked account, subject to withdrawal only upon authorization of the Court.

Similarly, Victor Mateo Borjas a minor, by and through his Guardian Ad Litem, Ruth Castellon, has agreed to settle his claims with Defendants in exchange for $5,000.00. If approved, $1,650.00 will be used for attorney’s fees and $316.96 will be used for litigation costs, leaving $3,033.04 to be deposited into a blocked account, subject to withdrawal only upon authorization of the Court.

Camila Borjas is the only Plaintiff asserting physical injuries. In 2016, at the age of 2, Camila was diagnosed with language and speech delays. She has undergone extensive therapy provided by her school. To date, she continues to evidence speech and language delays. All other cognitive functions seem appropriate for her age.

The property was insured through United States Liability Insurance for $1,000,000. The parties reached a settlement of $550,000 through mediation with retired Judge Gerald Rosenberg with Alternative Dispute Resolution.

The settlement funds are to be paid as follows:

Camila Borjas $300,000

Ruth Castellon $122,500

Victor Borjas $122,500

Victor Mateo $5,000.00

As a condition of the settlement, the family will have until May of 2020 to move out of the property and will not pay rent from January 2020 to May 2020.

The Court has reviewed the proposed settlement and finds that it is fair and reasonable. Further, the requested attorneys’ fees, which amount to 33% of the settlement, is also fair and reasonable.

Accordingly, the unopposed Petitions to Approve Minor’s Compromise is GRANTED.

Counsel for the minors shall give notice of this Order.