Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-4_91-cv-00261/USCOURTS-azd-4_91-cv-00261-1/pdf.json

Nature of Suit Code: 440
Nature of Suit: Other Civil Rights
Cause of Action: 42:1983 Civil Rights Act

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UNITED STATES DISTRICT COURT

DISTRICT OF ARIZONA

J.K., a minor by and through R.K., et al.,

on behalf of themselves and all others

similarly situated, 

Plaintiffs, 

vs.

WILL HUMBLE, in his official capacity

as Interim Director of the Arizona

Department of Health Services; DR.

LAURA NELSON, in her official capacity

as Director, Division of Behavioral Health

Services, Arizona Department of Health

Services; THOMAS J. BETLACH, in his

official capacity as Director, Arizona

Health Care Cost Containment System, 

Defendants. 

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No. CV 91-261 TUC-AWT

ORDER

The parties disagree as to the proper interpretation of their 2001 Settlement

Agreement. On November 15, 2012, the Court appointed Ruth V. McGregor to act as

Special Master in this case pursuant to Federal Rule of Civil Procedure 53 (Dkt. 586).

The Court directed that the Special Master “issue a report and recommendation to the

Court of a resolution of the parties’ differences concerning the interpretation of the

Settlement Agreement and whether and, if so, how to proceed in resolving any disputes

arising under the Agreement.” Id. ¶ 6. The Special Master heard oral argument and

received post-hearing memoranda from the parties before issuing a Proposed Report and

Recommendations (Dkt. 604). The parties filed responses to the Special Master’s

Case 4:91-cv-00261-AWT Document 621 Filed 07/09/13 Page 1 of 3
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proposed order (Dkts. 605 & 606), in consideration of which the Special Master entered

her final Report and Recommendation (Dkt. 607). 

Now before the Court is the Special Master’s Report and Recommendations (Dkt.

607), Defendants’ Motion to Adopt Special Master’s Report and Recommendations with

One Modification and Remand Remaining Disputes for Dispute Resolution Pursuant to

the Settlement Agreement (Dkt. 612), Plaintiffs’ Objections to Special Master’s Report

and Recommendations (Dkt. 611), and Defendants’ Response to Plaintiffs’ Objections to

Special Master’s Report (Dkt. 618). Also before the Court is Special Master McGregor’s

Application for Compensation (Dkt. 615), Defendants’ Response to Special Master’s

Application for Compensation (Dkt. 617), and Plaintiffs’ Response to Special Master’s

Application for Compensation (Dkt. 619). After reviewing the pleadings, the Special

Master’s Report and Recommendations, and the Special Master’s Application for

Compensation, and following a motion hearing held June 21, 2013, the Court issues the

following Order.

I. Special Master’s Report and Recommendations

Objections to factual findings and legal conclusions made or recommended by the

Special Master are subject to de novo review. Fed. R. Civ. P. 53(f)(3)-(4). On matters of

procedure, the Special Master’s rulings are reviewed for abuse of discretion. Fed. R. Civ.

P. 53(f)(5). Having reviewed the Report and Recommendations as well as the parties’

motions, objections, and oral arguments thereto, the Court now adopts in full the Special

Master’s Report and Recommendations (Dkt. 607) and overrules Plaintiffs’ objections

(Dkt. 611). Defendants’ motion (Dkt. 612) is denied to the extent that it seeks

modification of the Special Master’s Report and Recommendations, and the motion is

otherwise granted.

With regard to those issues on which the Special Master has determined that

factual development is necessary – that is, the issues summarized in ¶¶ 6, 7, 8, 10, and 11

of the Report and Recommendations (Dkt. 607 at 15-16) – a hearing date has already

been set during which the Court will receive evidence. See Dkt. 620 (setting evidentiary

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hearing for November 18, 2013 at 9:00 AM, in the U.S. District Court for the District of

Arizona at Phoenix).

II. Special Master’s Application for Compensation

The Special Master requests compensation in the amount of $21,200.00 and

recommends that the fee be divided between the parties as follows: 25% ($5,300.00)

assessed to Plaintiffs and 75% ($15,900.00) assessed to Defendants (Dkt. 615).

Defendants have no objection (Dkt. 617). Plaintiffs do not object to the amount of

compensation but they ask that the entire $21,200.00 fee be assessed to Defendants (Dkt.

619). The Court is persuaded by Plaintiffs’ arguments. Plaintiffs are a class of Medicaideligible minors; they are in no position to compensate the Special Master.

Accordingly,

IT IS HEREBY ORDERED that the Special Master’s Report and

Recommendations (Dkt. 607) are adopted as part of the Order of the Court.

IT IS FURTHER ORDERED overruling Plaintiffs’ objections to the Special

Master’s Report and Recommendations (Dkt. 611).

IT IS FURTHER ORDERED that Defendants’ motion to adopt the Special

Master’s Report and Recommendations with one modification (Dkt. 612) is GRANTED

in part and DENIED in part.

IT IS FURTHER ORDERED that the Special Master’s Application for

Compensation, requesting a total compensation of $21,200.00, is GRANTED. The Court

appreciates the Special Master’s capable assistance in this matter.

IT IS FURTHER ORDERED that Defendants shall pay 100% of the Special

Master’s fee.

DATED this 9th day of July, 2013.

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