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Townsend v. Cnty. of Santa Cruz

United States District Court, Northern District of California
Dec 16, 2021
5:19-cv-00630 BLF (N.D. Cal. Dec. 16, 2021)

Opinion

5:19-cv-00630 BLF

12-16-2021

ANTONIO NEAL TOWNSEND through his Conservator and Guardian ad Litem JACQUELINE TOWNSEND, Plaintiff, v. COUNTY OF SANTA CRUZ, et al., Defendants.

G. Dana Scruggs, State Bar No. 96152 SCRUGGS, SPINI & FULTON John Burton, State Bar No. 86029 THE LAW OFFICES OF JOHN BURTON Attorneys for Antonio Neal Townsend through his Conservator and Guardian ad Litem Jacqueline Townsend


G. Dana Scruggs, State Bar No. 96152

SCRUGGS, SPINI & FULTON

John Burton, State Bar No. 86029

THE LAW OFFICES OF JOHN BURTON

Attorneys for Antonio Neal Townsend through his Conservator and Guardian ad Litem Jacqueline Townsend

[PROPOSED] ORDER DISBURSING SETTLEMENT PROCEEDS

The Court, being advised in the premises and for good cause shown, IT IS ORDERED THAT the Court's “Interim Order Finding Proposed Settlement To Be Fair and Reasonable, ” Docket No. 142, is adopted as a final order, which approves the $5.5 million global settlement for the reasons stated, and allocates the settlement funds as follows:

Gross Settlement

$5,500,000.00

Less cost advanced

($221,654.01)

Net Settlement

$5,278,345.99

Less 40% Contingency Fee

($2,111,338.40)

Less Medical Liens

($670,797.96)

Net to Plaintiff

$2,496,209.63

1. The Settlement Agreement attached as Exhibit A to the accompanying Supplemental Declaration of John Burton is approved.

2. All funds disbursed to Plaintiff are to be placed in the Special Needs Trust (SNT) to be established by the Santa Clara Superior Court as provided in Exhibit B to the accompanying Supplemental Declaration of John Burton. Pending the establishment of the SNT, which is presently awaiting court approval, all funds disbursed to Plaintiff shall be deposited in the Scruggs, Spini & Fulton Client Trust Account, and disbursed therefrom as provided in this Order.

3. The $5,500,000 is to be disbursed as follows:

Total Settlement

$5,500,000.00

Payment to Fund Plaintiff's Annuity

($500,000.00)

Payments to Fund Attorneys' Annuities

($1,224,793.80)

Remaining Settlement Funds to be transferred to Scruggs, Spini & Fulton Client Trust Account

$3,775,206.17

Cost Advanced reimbursement

($221,654.01)

Balance of Attorney's Fees ($2,111,338.40 less $1,224,793.83 to Fund Attorneys' Annuities)

($886,544.57)

To Be Held For Medi-Cal Lien

($670,797.96)

Balance to hold for SNT ($2,496,209.63 less $500,000 to Fund Plaintiffs Annuity)

$1,996,209.63

4. Funding Plaintiff's Annuity. Defendants shall issue by check or draft in the amount of $500,000.00 made payable to AMERICAN GENERAL LIFE INSURANCE COMPANY, within 5 days of this Order for the purchasing a structured settlement annuity as outlined in the Settlement Agreement and Release, Exhibit A.

5. Funding Attorneys' Annuities. The Court authorizes and instructs payment to be made to Plaintiff's attorneys as follows:

(a) Payee: Dana Scruggs: Defendants shall issue by check or draft in the amount of $400,000.00 made payable to AMERICAN GENERAL LIFE INSURANCE COMPANY, within 5 days of this Order for the purchase of a tax-free structured settlement annuity as outlined in the Settlement Agreement and Release, Exhibit A.

(b) Payee: John Burton: Defendants shall issue by check or draft in the amount of $324,793.80 made payable to AMERICAN GENERAL LIFE INSURANCE COMPANY, within 5 days of this Order for the purchase of a tax-free structured settlement annuity as outlined in the Settlement Agreement and Release, Exhibit A.

(c) Payee: David Fulton: Defendants shall issue by check or draft in the amount of $500,000.00 made payable to PACIFIC LIFE INSURANCE COMPANY, within 5 days of this Order for the purchase of a tax-free structured settlement annuity as outlined in the Settlement Agreement and Release, Exhibit A.

All sums set forth herein constitute damages on account of personal physical injuries or physical sickness, within the meaning of Section 104(a)(2) of the Internal Revenue Code of 1986, as amended.

6. Scruggs, Spini & Fulton Client Trust Account. Defendants are to deposit the balance of the settlement proceeds, $3,775,206.17, into the Scruggs, Spini & Fulton Client Account. Plaintiff's counsel are instructed to make the following disbursements:

Cost Advanced reimbursement of $221,654.01.

Balance of Attorney's Fees of $886,544.57.

Plaintiff's counsel are instructed to hold $670,797.96 for the Medi-Cal lien. When the amount of the lien is resolved, Medi-Cal is to be paid, and the balance of the lien is to be paid to the SNT after it is established by the Santa Clara Superior Court.

The balance remaining, $1,996,209.63, is to be paid to the SNT after it is established by the Santa Clara Superior Court.

7. Immediate Funds For Placement in a Private Facility. Until the SNT is funded pursuant to this Order Ms. Townsend is authorized to spend up to $35,000 a month drawn from the Scruggs, Spini & Fulton Client Trust Account to transfer Plaintiff Antonio Townsend to a private rehabilitation facility. Plaintiff currently resides at the Courtyard Care Center. Medical professionals recommend he be transferred to the Gilroy NeuroRestorative care center or a similar facility.

NeuroRestorative is a leading provider of subacute and post-acute rehabilitation services for people with brain, spinal cord and medically complex injuries, illnesses and other challenges. The plan is to move Plaintiff to this facility for at least a year to improve his chances of recovery sufficiently to allow him to return home. The costs are approximately $1,000 a day and are not covered by public benefits. However, if successful, this course of action will enhance Plaintiffs life considerably as he will have a much better chance of returning home rather than living in a facility for the rest of his life. Plaintiff should have immediate access to this level of treatment to improve his life and his life expectancy.

8. The Court retains jurisdiction over this settlement until the SNT is established and all these disbursements have been made.


Summaries of

Townsend v. Cnty. of Santa Cruz

United States District Court, Northern District of California
Dec 16, 2021
5:19-cv-00630 BLF (N.D. Cal. Dec. 16, 2021)
Case details for

Townsend v. Cnty. of Santa Cruz

Case Details

Full title:ANTONIO NEAL TOWNSEND through his Conservator and Guardian ad Litem…

Court:United States District Court, Northern District of California

Date published: Dec 16, 2021

Citations

5:19-cv-00630 BLF (N.D. Cal. Dec. 16, 2021)