Case Number: VC060974    Hearing Date: October 21, 2014    Dept: 93

Superior Court of California
County of Los Angeles
Department 93

ROY NOAH SAPIENS, et al.,

Plaintiff(s),
v.

KENNETH PURDOM, M.D., et al.,

Defendant(s). Case No.: VC060974

Hearing Date: September 24, 2014

[TENTATIVE] ORDER RE: PETITION TO APPROVE COMPROMISE OF DISPUTED CLAIM ON BEHALF OF A MINOR

The Petition by Roy Sapiens to Approve Compromise of Disputed Claim on Behalf of Claimant Minor Roy Noah Sapiens is granted, subject to the following modifications of the Special Needs Trust: the Special Needs Trust needs to be revised as to Article One, Section 1.1 and Schedule A to state the specific amount of funds that will be deposited into the trust. At the hearing, counsel should clarify this amount, which appears to be $1,491,439.43, but is payable partly in cash and party by purchase of an annuity.

Upon filing and approval of the revised Special Needs Trust, this Court shall approve the Minor’s Compromise. Petitioner is ordered to establish a Trust Proceeding using the Court form in the Probate Department within sixty days. This matter is set for a nonappearance OSC re Commencement of Probate Court Proceeding and for proof of filing of the bond for January 26, 2015.

Counsel also need to address the request for attorneys’ fees in connection with preparation of the Special Needs Trust.

Background

The Court has reviewed the petition for approval of the proposed special needs trust and the proposed special needs trust, and finds that it complies with the applicable Probate Code sections and Rules of Court (“CRC”), with one required modification, set forth below.

Under Probate Code sections 3602-3613, the court may establish a special needs trust and direct that the proceeds of an award for a minor or a person with a disability be placed into the special needs trust. Under Probate Code section 3604(b), a special needs trust may be established and continued when the court makes the following three findings:
(1) That the minor or person with a disability has a disability that substantially impairs the
individual’s ability to provide for the individual’s own care or custody and constitutes a
substantial handicap;
(2) That the minor or person with a disability is likely to have special needs that will not be met without the trust; AND
(3) That money to be paid to the trust does riot exceed the amount that appears reasonably
necessary to meet the special needs of the minor or person with a disability.

The court finds that all three factors are met here with respect to minor Roy Sapiens.

The special needs trust also complies with the applicable California Rules of Court. Specifically, the special needs trust complies with CRC, Rule 7.903(c) as follows:
a) the special needs trust does not contain a “No Contest” provision;
b) the special needs trust prohibits modification or revocation without court approval;
c) the special needs trust clearly identifies Ana Santos as trustee and any other person with authority to direct the trustee to make disbursements;
d) the special needs trust prohibits investments by the trustee other than those permitted under Probate Code section 2574;
e) the special needs trust requires the trustee to post a bond in an amount required under Probate Code sections 2320 2335;
f) the special needs trust requires the trustee to file accounts and reports for court approval in the manner and frequency required by Probate Code sections 1060 – 1064 and 2620 2628;
g) the special needs trust requires court approval of changes in trustees and a court order appointing any successor trustee; and
h) the special needs trust requires compensation of the trustee or the attorney for the trustee, to be in just and reasonable amounts that must be fixed and allowed by the court.

Petitioner also complies with California Rule of Court 7.207 by providing that the Trustee will post a $276,000 bond, as follows: $250,000 cash plus $5,000 every six months, plus $26,000 (10% of litigation costs). (Special Needs Trust, ¶24.)

While the Court is finding that the Special Needs Trust complies with the Probate Code and California Rules of Court, Petitioner needs to make the following modification to the Special Needs Trust prior to approval of the trust by the Court: the Special Needs Trust needs to be revised as to Article One, Section 1.1 and Schedule A to state the specific amount of funds ($1,491,439.43) that will be deposited into the trust.
Petitioner is also ordered to establish a Trust Proceeding in the Probate Department within 60 days of this Order by filing a “Notice of Commencement of Proceedings for a Court Supervised Trust (No Filing Fee Due)” (Form PRO 044). Counsel should attach to the form: 1) a conformed copy of the order approving the establishment of the Trust; and 2) a copy of the proof of bond.

Upon compliance with this Order, the Court will approve the Special Needs Trust and the Minors’ Compromise.

Petitioner is ordered to give notice.

DATED: October 23, 2014
_________________________
Hon. Gail Ruderman Feuer
Los Angeles Superior Court