Opinion
No. CV 1:01-0048-BH-S
May 14, 2001
ORDER
This matter came on for hearing on May 14, 2001, for the Court's consideration of a proposed settlement in this matter. This interpleader action was originally filed by J.C. Penney Life Insurance Company, seeking an adjudication of the interests of JoAnn Walker and her two minor children, Allen J. Walker and Janice L. Walker, over approximately $50,000.00 in life insurance proceeds. On January 26, 2001, JoAnn Walker filed an answer to the interpleader complaint asserting her claim to the insurance proceeds, and denying that her children had any legal right to claim the insurance proceeds. In her answer, Mrs. Walker requested that the Court appoint a guardian ad litem to represent the interests of her two minor children in this action.
In February 14, 2001, this Court appointed Paul V. Lagarde as guardian ad litem for Allen J. Walker and Janice L. Walker.
On or about April 25, 2001, this court was advised that the parties have amicably settled their mutual interests to the insurance proceeds at issue here. Since both Allen J. Walker and Janice L. Walker are minors, on April 30, 2001, the court ordered that an evidentiary hearing be set for May 14, 2001, concerning the underlying facts giving rise to this dispute as well as the details of the compromised settlement. At that hearing, in order to determine whether the settlement is in the best interest of the minors and is just, fair, and sufficient and in order to arrive at the proper allocation of settlement proceeds, the Court heard testimony from the parties as follows:
1. Mrs. JoAnn Walker testified that she is the mother of Allen J. Walker and Janice L. Walker. She testified that she has raised them both since their birth and has always provided for their necessities. Mrs. Walker further testified that she is in agreement with the proposed settlement as set forth below, and that the monies she is to receive from the insurance proceeds will be used for the benefit of her family, including her two minor children, Allen and Janice. In addition, Mrs. Walker testified that as part of the settlement, she agrees to maintain the monies set aside for her two children in interest bearing certificates of deposit and for the sole use and benefit of Allen and Janice upon reaching the age of twenty-one. Mrs. Walker specifically promises that she will never attempt to withdraw these monies from said certificates of deposit or attempt to withdraw any of the interest accruing thereon unless she receives the specific permission of this Court.
2. The Court also heard from Allen J. Walker, the 15-year-old son of Mrs. JoAnn Walker. Allen testified that he understood the terms of this settlement, that he agrees with same, and that as part of this settlement he will forfeit any right to further benefits from the life insurance policy at issue here.
3. The guardian ad litem advised the Court that he has reviewed the entire file in this case and has interviewed the two minor children and Ms. JoAnn Walker. In addition, he has interviewed counsel for Ms. Walker with regard to his views as to the probability of success of his client in this case and anticipated litigation and trial expenses. Furthermore, the guardian ad litem advises the Court that he has considered and weighed the facts and circumstances of this litigation, he has taken into account the probability of success for the minor children, as well as the situation of the entire family and the wishes of the two minor children. Based on the above, the guardian ad litem has concluded, and so advises the Court, that in his opinion the proposed settlement is in the best interests of the minor children.
ACCORDINGLY, based upon the foregoing, the following settlement agreement proposed by the parties is hereby approved by this Court:
a. Five Thousand dollars of the interplead funds will be disbursed to JoAnn Walker through her attorney, Robert Edington, for the benefit of Allen J. Walker. These funds shall be used by Ms. Walker to purchase a certificate of deposit in the name of Allen J. Walker with JoAnn Walker as the guardian. Said certificate of deposit shall be automatically renewed until Allen i. Walker's 21 birthday, August 31, 2006. Upon reaching the age of 21, Allen Walker shall have full rights to obtain all principal and accrued interest from said certificate of deposit. The Court specifically orders Mrs. Walker to take no action to obtain any benefit from said certificate of deposit except as specifically provided herein.
b. Five Thousand dollars of the interplead funds will be disbursed to JoAnn Walker for the benefit of Janice L. Walker. These funds shall be used by Mrs. Walker to purchase a. certificate of deposit in the name of Janice L. Walker with Mrs. Walker as the guardian. Said certificate of deposit shall be automatically renewed until Janice L. Walker's 21 birthday, January 14, 2016. Upon reaching the age of 21, Janice L. Walker shall have full rights to obtain all principal and accrued interest from said certificate of deposit. The Court specifically orders Mrs. Walker to take no action to obtain any benefit from said certificate of deposit except as specifically provided herein.
c. The remaining amounts of the interplead funds will be disbursed to Mrs. JoAnn Walker through her attorney, Robert Edington, after payment of the guardian ad litem fee awarded by the Court herein. It is understood and agreed by Ms. JoAnn Walker, that as part of this settlement, she will use these funds for the benefit of her entire family, including Allen J. Walker and Janice L. Walker.
It is the intent of the parties through this settlement to maintain the $5,000.00 set aside by each party in certificates of deposit, earning compounded interest until the two minor children reach the age of 21. Mrs. Walker agrees that she will take no action to cash in or remove any of the monies from the certificates of deposit, including interest. Mrs. Walker is specifically prohibited from obtaining any benefits from these certificates of deposit for any reason. Should Mrs. Walker ever desire to use these funds for the specific benefit of the minor children, she is ordered to make application to this Court for permission to obtain such funds as may be necessary.
Based upon the foregoing, the court finds that this settlement is in the best interest of the minor children, Allen 3. Walker and Janice L. Walker, and is fair, just, and sufficiently concerned with each minor's interests.
The guardian ad litem represents that prior to this hearing, he has expended almost 9 hours of his time on this matter. The guardian requests, and plaintiff has no objection, to an award of one thousand dollars for the guardian ad litem fee. This amount is a significant reduction over the normal hourly fee charged by the guardian ad litem.
The court hereby awards a guardian ad litem fee in the amount of one thousand dollars to Paul V. Lagarde of the law firm of Carr, Alford, Clausen and McDonald, L.L.C. upon receipt of the firm's taxpayer identification number. Said amount is to be paid out of the portion of interplead funds to be provided to Mrs. JoAnn Walker as part of this settlement agreement and order.
The clerk of court is hereby ORDERED to disburse the funds interplead in this action consistent with the foregoing order.