Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_11-cv-00156/USCOURTS-azd-2_11-cv-00156-1/pdf.json

Nature of Suit Code: 791
Nature of Suit: Employee Retirement Income Security Act (ERISA)
Cause of Action: 29:1001 E.R.I.S.A.: Employee Retirement

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1

 On January 17, 2012, Marivel Ramos petitioned the Maricopa County Superior

Court in Case No. PB2012-090038, requesting she be appointed conservator and guardian

for her 78-year-old mother, Maria I. Gonzalez, who is currently living in an assisted-living

facility and suffering from Alzheimer’s dementia which prevents her from managing her

own affairs and finances. (Defendants’ Exhibit (“Exh.) A) An appointment hearing,

presently uncontested, is scheduled for March 27, 2012 before a Superior Court

commissioner.

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IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

K.T., a minor and heir of the Estate of

Sandra Ramos; J.R. Thompson, solely in

his capacity as custodial parent and next of

friend of K.T., 

Plaintiff, 

vs.

Devon Ramos, individually and as

personal representative of the Estate of

Gilbert Ramos; Maria Gonzalez; 

Christopher Dunagan; Marivel Ramos, 

Defendants. 

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No. CV-11-156-PHX-LOA

No. CV-11-554-PHX-LOA

(Consolidated)

ORDER

This case arises on the parties’ request for settlement approval of this consolidated

interpleader action. J.R. Thompson, conservator and father of K.T., a minor; Marivel Ramos,

putative conservator and guardian1

 for Maria I. Gonzalez, an incapacitated adult and mother

of the late Gilbert Ramos; and the remaining parties have petitioned the court for approval

of their compromise agreement. A final settlement approval hearing was held on February

Case 2:11-cv-00156-LOA Document 67 Filed 02/13/12 Page 1 of 18
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2 Counsel were previously ordered, doc. 36 at 5, to refer to the minor as “K.T.” only

in all public filings to safeguard her privacy interests pursuant to Rule 5.2(a)(3), “[a] rule that

establishes a special approach and procedure for granting juvenile anonymity during

litigation.”Doe ex rel. Doe v. Kamehameha Schools/Bernice Pauahi Bishop Estate, 625 F.3d

1182, 1187 (9th Cir. 2010) (Chief Judge Kozinski, dissenting from denial of en banc

review).

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2, 2012 in open court before the undersigned Magistrate Judge. At the hearing, counsel for

all parties and K.T.’s conservator, J.R. Thompson, and Maria’s presumed conservator,

Marivel Ramos, were present. All parties have filed reports regarding the status of the

parties’ settlement. (Docs. 55-56, 58) Pending for ruling are K.T.’s sealed Supplemental

Motion for Approval of Minor’s Settlement, doc. 57, and the sealed Stipulation for

Distribution of Funds, doc. 60, which the Court has construed as a joint motion because it

involves claims asserted on behalf of a minor and an incapacitated person. All parties have

consented to magistrate-judge jurisdiction pursuant to 28 U.S.C. § 636(c). (Docs. 29; 29-1

at 1-3; 28 in CV-11-554-PHX-LOA)

I. Background

This interpleader action arises from a tragic familial triple homicide and suicide. On

or about September 21, 2010, Gilbert Ramos shot and killed Sandra Ramos and their two

minor children and then killed himself. At the time of the shootings, Gilbert was married to

Sandra with whom he had two young children and was employed by AMF Bowling

Worldwide, Inc. (“AMF Bowling”). The children died at the scene and Sandra survived for

a few days before she passed away from her injuries. Sandra’s biological daughter, K.T.2

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now 16 years old and born from a prior marriage to J.R. Thompson, was not present at the

time of the murders and suicide. 

At the time of the shootings, Gilbert and his sister, Marivel Ramos, were reportedly

the subjects of an insurance fraud investigation as a result of Gilbert’s intentional damage to

Marivel’s automobile and a subsequent claim for payment by Marivel’s auto insurance

Case 2:11-cv-00156-LOA Document 67 Filed 02/13/12 Page 2 of 18
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3 Early on in this ligation, Marivel Ramos and Maria Gonzalez contended that Gilbert

Ramos failed to designate a beneficiary for his 401(k) plan. (Doc. 19 at 6 in CV-11-554-

PHX-LOA) 

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benefits. In his suicide note, Gilbert absolved Marivel of criminal complicity, admitted he

intentionally damaged his sister’s vehicle, confessed he told her someone had stolen it, and

opined he “ruined [his] family financially[]” and was “sorry for what [he’s] done and am

about to do.” (Supplement to Police Report, by Homicide Detective, T. Nelson, December

3, 2010.)

Gilbert’s employer, AMF Bowling, maintained a 401(k) retirement plan for the benefit

of its eligible employees, including Gilbert, whose account balance on December 30, 2010

was $77,158.84. (Doc. 1, ¶ 14 at 3) According to AMF Bowling, before his marriage to

Sandra, Gilbert designated his plan’s beneficiaries as Maria Gonzalez, his mother; Devon

Ramos, his adult son; Sandra Thompson, his then fiancee; and Christopher Dunagan, another

adult son, as either primary and/or secondary beneficiaries with certain percentages

designated for each that totaled 100 percent of the plan’s benefits. (Id., ¶ 17 at 43

) Prior to

the consolidation of this case with CV-11-554-PHX-LO, the assigned district judge granted

AMF Bowling’s Motion to Interplead Funds; authorized AMF Bowling to deposit the

balance of the money in Gilbert’s 401(k) plan and accrued interest ($62,113.70) into the

District Court of Arizona’s registry, after deducting AMF Bowling’s attorneys’ fees and

costs in the amount of $10,610.00; dismissed AMF Bowling from the action with prejudice

after the deposit of the interpled money; and enjoined all defendants, successors and assigns

from instituting any action against AMF Bowling for the recovery of any amounts that were

the subject of the interpleader action. (Docs. 25-26 in CV-11-156-PHX-LOA) 

At the time of his death, Gilbert Ramos was insured by Liberty Life Assurance

Company of Boston (“Liberty Life”) under a renewable and convertible term life insurance

policy in the amount of $100,000.00, Policy No. NF3-39621478. (Doc. 1, ¶ 17 in CV-11-

554-PHX-LOA) Before his marriage to Sandra, Gilbert designated Marivel Ramos, his

sister, as the primary beneficiary, and Maria Gonzalez, his mother, as the contingent

Case 2:11-cv-00156-LOA Document 67 Filed 02/13/12 Page 3 of 18
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4

 Devon Ramos and Christopher Dunagan, Gilbert’s sons from a prior relationship,

were not named as potential claimant’s to Gilbert’s life insurance proceeds in Liberty Life’s

interpleader action and made no claim to such proceeds. (Doc. 1 in CV-11-554-PHX-LOA)

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beneficiary. (Id., ¶¶ 4-5, 18) After disputes arose over the entitlement of Gilbert Ramos’ life

insurance proceeds, Liberty Life filed an interpleader action on March 24, 2011, pursuant to

Rule 22, Fed.R.Civ.P., and 28 U.S.C. § 2201.4 Id. Liberty Life alleged it was “an innocent

stakeholder that face[d] the threat of duplicative litigation and inconsistent liabilities

regarding the Proceeds because of the conflicting claims of the Defendants and, accordingly,

it cannot safely pay the Proceeds to any of the adverse claimants.” (Id., ¶ 27) On July 25,

2011, Liberty Life deposited the amount of $102,943.12, the principal amount of Gilbert’s

life insurance policy plus $2,943.12 in accrued interest, into this District Court’s registry.

(Doc. 18) 

On January 3, 2012, the Court granted Liberty Life’s Revised Motion for Dismissal

 and Discharge and dismissed Liberty Life from this action with prejudice. (Doc. 53) Liberty

Life was discharged from any further obligation and liability to any person, whether a party

herein or not, with respect to Gilbert Ramos’ life insurance policy with Liberty Life, Policy

No. NF3-39621478. (Id. at 9-10) After Liberty Life discounted its attorneys’ and paralegals’

fees and, pursuant to Ninth Circuit precedent, the Court awarded Liberty Life its fees and

costs in the sum of $13,955.80. (Id.) 

With the skilled and gentle assistance of Magistrate Judge Michelle H. Burns at an

emotionally-charged settlement conference in late November, 2011, the parties reached an

amicable settlement, apportioning the residual interpled funds and accruing interest amongst

the claimants. (Docs. 48, 60) As of February 7, 2012, the combined res amounted to

$151,105.52. (Doc. 66) The claimants agreed to a distribution of the following gross

amounts before payment of their attorneys’ fees and costs: 1) $43,000.00 allocated between

Maria Gonzalez ($16,500) and Marivel Ramos ($26,500); 2) $50,000 to Devon Ramos,

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5

 The minor, through both her conservator and attorney, agreed to incur the

discrepancy, approximately $54.52 as of January 27, 2011, between the amount that was

believed to be held by the Clerk and what actually was held by the Clerk. (Doc. 60 at 2) In

exchange, all counsel agreed that should any additional interest accrue on the interpled funds

prior to its conclusion, the additional interest shall be added to the amount that K.T. receives.

(Id.) 

According to the Clerk’s Financial Administrator, a request for funds deposited in the

District Court of Arizona’s registry can only be made on a Wednesday. Under the federal

Court Registry Investment System (“CRIS”), money deposited in every district court case

is pooled with the money on deposit with the Treasury, with a credit back to all district

courts with funds in CRIS, which is used to purchase Government Account Series securities

through the Bureau of Public Debt. See 28 U.S.C. §§ 2041, 2045; Six Mexican Workers v.

Arizona Citrus Growers, 904 F.2d 1301, 1308 n. 5 (9th Cir. 1990). CRIS operates on a

weekly cycle tied to a Thursday maturity date of these securities.

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Gilbert’s adult son; and 3) $58,105.525

 to K.T., but payment would be made to J.R.

Thompson, solely for K.T.’s benefit, in his capacity as her sole custodial parent and

conservator.

At the final settlement approval hearing, evidence was presented that, on December

13, 2010, J.R. Thompson filed a Petition for Permanent Appointment of Conservatorship of

a Minor in the Maricopa County Superior Court, Case No. PB2010-91268, requesting he be

appointed K.T.’s conservator because she “owns money or property that requires

management or protection[.]” (hearing Exh. 1) The petition was granted on January 6, 2011

by Superior Court Commissioner Kirby Kongable, appointing J.R. Thompson as K.T.’s

conservator to serve without a bond. (Id.) The appointment order requires K.T.’s funds “be

deposited in [Maricopa County], in a federally insured, interest bearing account titled ‘The

Estate of [K.T.], a Minor, by [J.R. Thompson], Conservator.’” (Id.) 

Similarly, evidence was presented at the February 2, 2012 hearing that Marivel

Ramos petitioned the Maricopa County Superior Court, Case No. PB2012-90038, on

January 17, 2012, requesting she be appointed Maria I. Gonzalez’ guardian and conservator

because her mother, Maria, is an incapacitated and protected person, as defined by Arizona

law, and is “receiving funds from a settlement of a case in the U.S. District Court [in] Phx.

Az[.]” (hearing Exh. A) Evidence was introduced that the required notices have been

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6 The Never Again Foundation represents itself as “a non profit legal charity that helps

families nationwide who have lost a loved one to domestic violence. We prevent killers from

financially profiting from murder.” http://www.neveragainfoundation.org (last visited on

February 5, 2012). Its funding is “primarily from two sources: 1) a grant which originates

from the United States Department of Justice, locally administered by the Arizona

Department of Health Services; and 2) donations of successful clients who voluntarily

pledge to donate 25% of any settlement or judgment . . . .” (Doc. 57 at 3) “[K].T., through

J.R. Thompson, pledged to donate 25% of any collectible amount to the Never Again

Foundation as a donation to assist the next victim behind K.T.” (Id. at 4) The 25% donation

equates to $14,526.38, as of February 7, 2012. (Doc. 66 at 2)

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provided and an appointment hearing is scheduled for March 27, 2012 to consider Marivel

Ramos’ Petition. (Id.) 

The minor, K.T., and her father, as her conservator, are represented by counsel

employed by The Never Again Foundation, a § 501(c)(3) non-profit legal charity, located in

Phoenix. (Doc. 57-2, ¶ 4 at 1-2) The Never Again Foundation provides free legal

representation to surviving families in civil domestic violence death cases filed directly

against the offenders or killers.6 (Id.) The affidavit of K.T.’s senior litigation attorney, R.

Keith Perkins, indicates he is admitted to practice law in the Arizona state courts and the

United States District Court for the District of Arizona with “[n]ineteen years of litigation

experience, most of which is representing crime victims in complex civil litigation[]” and

details his experience in this specialized area as a crime victim’s rights’ litigator, teacher,

lecturer, award winner and writer. (Id., ¶¶ 4-5.4 at 2-3) He avers the “fair market value” for

a civil litigation attorney with his comparable experience, expertise, accomplishments, and

background is $350.00 per hour and “the number of attorney hours expended representing

[his] client in this case exceeds 100 hours.” (Id., ¶¶ 6-7 at 3) Plaintiffs’ request court

approval of an award of attorneys’ fees in the amount of $14,526.38, which counsel claims

is “justified, fair, reasonable, and in the best interests of the client, K.T.” (Id., ¶ 6 at 3; doc.

66 at 2) Mr. Perkins’ affidavit also sets forth the legal authorities establishing that non-profit

organizations may properly receive an award of attorney’s fees. See, e.g., Blum v. Stenson,

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7

 Mr. Friedlander need not resubmit duplicative times sheets and his application and

supplemental affidavit may, but need not, be filed under seal. However, his application and

supplemental affidavit must be in text-searchable format as required by the Local Rules and

ECF Manual and shall use the correct case number and initials unlike the affidavit at docket

no. 65.

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465 U.S. 886, 895 (1984) (“reasonable fees” under fee-shifting statutes, such as 42 U.S.C.

§ 1988, “are to be calculated according to the prevailing market rates in the relevant

community, regardless of whether the plaintiff is represented by private or nonprofit

counsel.”) (footnote omitted); Nadarajah v. Holder, 569 F.3d 906, 916 (9th Cir. 2009) (Even

though it is a non-profit organization, “[t]he ACLU’s representation of Nadarajah at no

charge, pursuant to the retainer agreement, does not preclude awarding reasonable attorneys’

fees under EAJA, including the requested prevailing market rates.”). Similarly, the Court has

previously awarded a modest amount of attorneys’ fees and costs to the two stakeholders in

this case pursuant to Ninth Circuit authority. See, Liberty Life Assur. Co. of Boston v. Ramos,

2012 WL 10184, * 3-5 (D.Ariz. January 3, 2012).

Marivel Ramos, Maria Gonzalez, and Christopher Dunagan are represented by Harry

P. Friedlander, an attorney licensed to practice in the State of Arizona. (Doc. 65)

Significantly, his affidavit fails to provide any information about his experience, expertise,

accomplishments, and background as an attorney for the Court to evaluate the

reasonableness of his requested fees and costs. Because Mr. Friedlander did not file a

narrative application or motion, including a “memorandum of points and authorities in

support of a motion for award of attorneys’ fees’s . . . .”, LRCiv 54.2(c), and his sealed

affidavit does not supply sufficient information needed to determine the reasonableness of

his requested fees and costs, consistent with LRCiv 54.2(c)(3), (d)(2) and (4), and how those

fees and costs are apportioned between his clients, the Court will not award any attorney’s

fees and costs to Mr. Friedlander until after he submits of an application and supplemental

affidavit of attorney’s fees in compliance with these specific Local Rules.7

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II. Applicable Law

A. Guardians Ad Litem 

Once a federal action is commenced, it must be prosecuted in the name of the real

party in interest. Gonzalez v. Ariz. Dep’t of Health Servs., 2009 WL 383535, * 1 (D.Ariz.

Feb.13 2009) (quoting Rule 17(a)(1) (providing an exception for legal guardians, inter alia));

see also 6A also Charles Alan Wright, Arthur R. Miller & Mary Kay Kane, Federal Practice

and Procedure § 1548, at 373-74 (2d ed. 1990) (“A guardian ad litem . . . is a nominal party

only; the ward is the real party in interest. . . .”). Rule 17(c)(2) provides that

[a] minor or an incompetent person who does not have a duly appointed

representative may sue by a next friend or by a guardian ad litem. The court must

appoint a guardian ad litem--or issue another appropriate order - to protect a minor

or incompetent person who is unrepresented in an action.

Rule 17(c)(2). A minor’s or incapacitated person’s representation by an attorney only is

insufficient to satisfy the requirements of Rule 17(c). U.S. v. 30.64 Acres of Land, More or

Less, Situated in Klickitat County, State of Wash., 795 F.2d 796, 805 (9th Cir. 1986) (noting,

in part, that the absence of guardian ad litem effectively precludes the possibility of a

binding contract of settlement because of the incompetency of one of the parties); Watson

v. County of Santa Clara, 468 F.Supp.2d 1150, 1155 (N.D.Cal. 2007) (dismissing without

prejudice actions brought by plaintiff minors because no guardian ad litem was formally

appointed by the court).

“As a general rule, a federal court cannot appoint a guardian ad litem in an action in

which the infant or incompetent already is represented by someone who is considered

appropriate under the law of the forum state.” Hogan v. Fresno County Sheriff’s Deputy

Robinson, 2005 WL 2064113 (E.D.Cal. Aug 24, 2005) (quoting T.W. by Enk v. Brophy, 124

F.3d 893, 896 (7th Cir. 1997); Developmental Disabilities Advocacy Center, Inc. v. Melton,

689 F.2d 281, 286 (1st Cir. 1982)); see also 6A Charles Alan Wright, Arthur R. Miller &

Mary Kay Kane, Federal Practice and Procedure § 1570, p. 497 (2d ed. 1990)). A district

court is “obligated to abide by the State’s determination of who shall represent the

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 Regardless whether the label is guardian ad litem, conservator, or next of friend,

“[t]he duties and powers of a minor’s [or incapacitated person’s] representative in litigation

are of course identical regardless of which title appropriately applies.” Dacanay v. Mendoza,

573 F.2d 1075, 1076 n. 1 (9th Cir. 1978).

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incompetent . . . [and the court’s] power to appoint under Rule 17(c) should not be used to

circumvent the mandate in Rule 17(b) to observe state law.” Id. (quoting Wolfe v. Bias, 601

F.Supp. 426, 427-28 (S.D.W.Va. 1984) and citing Brophy, 124 F.3d at 895). 

In a federal action, a district court has the discretion and authority to remove a

guardian ad litem or state-appointed conservator8

 to protect the best interests of a minor or

incapacitated person “as federal, not state law, governs the appointment of guardian ad litem

in federal court.” Hulstedt v. City of Scottsdale, 2011 WL 772387, * 2 (D.Ariz. March 1,

2011) (citing Estate of Escobedo v. City of Redwood City, 2006 WL 571354, * 7 (N.D.Cal.

March 2, 2006) (“The actual appointment process of guardians ad litem remains procedural,

and therefore, state rules do not apply to cases brought in federal courts.”) (citing Gibbs v.

Carnival Cruise Lines, 314 F.3d 125, 134-35 (3rd Cir. 2002)). 

A person may gain standing to sue as a guardian ad litem on behalf of a minor or

incompetent person if he or she can both “(1) provide an adequate explanation, such as

inaccessibility, mental incompetence, or other disability, why the real party in interest cannot

appear on his own behalf to prosecute the action; and (2) be truly dedicated to the best

interests of the person on whose behalf he or she seeks to litigate and have some significant

relationship with the real party in interest.” Gonzalez, 2009 WL 383535 at * 1 (quoting

Miller ex rel. Jones v. Stewart, 231 F.3d 1248, 1251 (9th Cir. 2000)); see also Matter of

Guardianship of Kelly, 184 Ariz. 514, 910 P.2d 665 (Az.Ct.App. 1996) (appointing an

independent third party as guardian rather than one of the ward’s adult children because clear

and convincing evidence supported the court’s determination that the ward was incapacitated

and in need of a guardian.). The ultimate decision whether to appoint a guardian ad litem or

retain a state-appointed conservator rests with the sound discretion of the district court and

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9

 For example, “[t]he original version of the UPC provided for no accounting from

the conservator except upon resignation or removal or upon express direction from the

court.” Estate of P.K.L. v. J.K.S., 189 Ariz. 487, 492 n. 3, 943 P.2d 847, 852 n. 3

(Az.Ct.App. 1997) (citing UPC (8 U.L.A.) § 5-418 (1969)). “Apparently, the drafters of the

UPC have found that it is more prudent to require annual accounting and amended section

5-418 to that effect in 1987.” Id.(citing A.R.S. § 14-5419(A)).

10 Of course, a “minor” is “[a] person who is under eighteen years of age.” A.R.S. §

14-1201(33). 

11 “‘Ward’ means a person for whom a guardian has been appointed.” A.R.S. §§

14-5101 and 14-1201(60).

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will not be disturbed unless there has been an abuse of its authority. Sam M. ex rel. Elliott

v. Carcieri, 608 F.3d 77, 85 (1st Cir. 2010) (quoting Melton, 689 F.2d at 285); Hoffert v.

General Motors Corp., 656 F.2d 161, 164 (5th Cir. 1981); see also In re Guardianship of

Kelly, 184 Ariz. 514, 518, 910 P.2d 665, 669 (Az.Ct.App. 1996) (The trial court “has wide

latitude to perform its statutory duty to safeguard the well-being of the ward.”).

B. Arizona Probate Laws

In 1973, Arizona adopted the Uniform Probate Code (“UPC”), A.R.S. §§ 14-1101 to

14-7308. Matter of Estate of Mason, 190 Ariz. 312, 313, 947 P.2d 886, 887 (Az.Ct.App.

1997). Over the years, there have been numerous statutory changes.9

 “The basic purpose of

the UPC is to simplify and clarify the law concerning the affairs of decedents [minors and

incapacitated wards], to discover and make effective the intent of a decedent in the

distribution of his property, and to promote a speedy and efficient system for liquidating the

estate of the decedent.” UNUM Life Ins. Co. of America v. Craig, 200 Ariz. 327, 332-33, 26

P.3d 510, 515-16 (Ariz. 2001).

Arizona’s probate laws are designed, in part, to protect and preserve the assets and

finances of a minor10 or an incapacitated ward.11 In re Guardianship of Sleeth, 226 Ariz. 171,

244 P.3d 1169, 1175 (Az.Ct.App. 2010) (Arizona’s statutes provide that “a conservator is

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12 “‘Guardian’ means a person who has qualified as a guardian of a minor or

incapacitated person pursuant to testamentary or court appointment but excludes a person

who is merely a guardian ad litem.” A.R.S. § 14-1201(23). Under Arizona law, a ‘[g]uardian

ad litem’ means a person who is appointed pursuant to § 14-1408.” A.R.S. § 14-1201(24).

13 “‘Conservator’ means a person who is appointed by a court to manage the estate

of a protected person.” A.R.S. § 14-1201(9). 

14 A.R.S. § 14-5424(D) provides as follows:

 A conservator may act with court approval to compromise a personal injury or

wrongful death claim for a protected person. The conservator may act with court

approval to release an alleged tortfeasor if the release is in the best interest of the

protected person. If the conservator obtains an order of approval for compromise

from a court of competent jurisdiction, the compromise may be in exchange for a

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to act as a fiduciary and shall observe the standard of care applicable to trustees as described

by §§ 14–10804 and 14–10806[,]” citing A.R.S. § 14–5417 (Supp. 2010)); In re

Guardianship of and Conservatorship for Rodden, 2011 WL 1998404, * 3 (Az.Ct.App.

2011) (“Guardians are charged with making broad care decisions and are responsible for the

care of the protected person’s personal effects.”). There are distinct differences in Arizona

between the powers conferred upon conservators and guardians. “Guardians have the duty

to make broad care decisions for the wards in their care and are required to care for their

wards’ personal effects, including their vehicles. A.R.S. §§ 14-5209, -5312 (2005). In

contrast, conservators only have the power to make decisions related to the pecuniary

interests of their wards. A.R.S. §§ 14-5424 (2005), -5425 (Supp. 2007).” In re

Conservatorship for Geake, 2008 WL 2352481, * 2 (Az.Ct.App. June 5, 2008). The powers

and duties of an Arizona guardian12 are set forth in A.R.S. § 14-5312 (2005) and for a

conservator13 in §§14-5417 and 5424 (2005). Sleeth, 226 Ariz. 171, 244 P.3d at 1175.

Among the many powers conferred upon a conservator by Arizona law is the

authority “with court approval to compromise a personal injury or wrongful death claim for

a protected person[.]” A.R.S. § 14-5424(D14) (emphasis added). Conservators, like other

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lump sum amount or an arrangement that defers the receipt of part or all of the

consideration for the compromise until after the protected person reaches majority

and may involve a structured settlement or the creation of a trust on the terms that the

court approves for any protected person.

A.R.S. § 14-5424(D) (1998); see also UPC § 5-423.

15 An incapacitated person means “‘any person who is impaired by reason of mental

illness, mental deficiency, mental disorder . . . except minority, to the extent that [s]he lacks

sufficient understanding or capacity to make or communicate responsible decisions

concerning his person.’” Rango, 2009 WL 325330 at * 3 (quoting A.R.S. § 14-5101(1)). 

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“fiduciaries and those hired to assist them, [must] act with prudence when dealing with the

property of another and [should] expect that their actions will be scrutinized in light of their

obligations to preserve and protect.” Sleeth, 226 Ariz. 171, 244 P.3d at 1175; see also Geake,

2008 WL 2352481 at * 2 (A conservator “[i]s under a duty to act for the benefit of the other

as to matters within the scope of the relation.”).

Arizona law provides that “a court may appoint a guardian when it is satisfied by

clear and convincing evidence that the proposed ward is incapacitated, the appointment is

necessary to provide for the ward’s demonstrated needs and that such needs cannot be met

by less restrictive means.” In re Guardianship and Conservatorship of Rango, 2009 WL

325330, * 3 (Az.Ct.App. February 10, 2009) (citing A.R.S. § 14-5304)). A guardian of an

incapacitated person15 has the same broad powers, rights, and duties respecting the

guardian’s ward that a parent has respecting the parent’s unemancipated minor child, except

that a guardian is not liable to third persons for acts of the ward solely by reason of the

guardianship. A.R.S. § 14-5312(A).

Arizona’s statutory scheme governing guardians and conservators authorizes an

award of reasonable attorney’s fees. Sleeth, 244 P.3d at 1172 (citing A.R.S. §§ 14–5314(A)

and 14–5414(A)). However, Arizona courts “[e]ndorse [attorney fee-reducing] suggestions

and encourage fiduciaries and attorneys to diligently search for ways to increase efficiency

and to employ cost-reducing measures that will preserve as much as possible the protected

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person’s estate. Obviously, fiduciaries and their attorneys must avoid the pursuit of pyrrhic

victories that accomplish little but to bankrupt the protected person.” Id. at 1174.

C. The Court’s Duty to Protect

“It has long been established that the court in which a minor’s claims are being

litigated has a duty to protect the minor’s interests.” Salmeron v. United States, 724 F.2d

1357, 1363 (9th Cir. 1983). “In the context of proposed settlements in suits involving minor

plaintiffs, this special duty requires a district court to ‘conduct its own inquiry to determine

whether the settlement serves the best interests of the minor.’” Robidoux v. Rosengren, 638

F.3d 1177, 1181 (9th Cir. 2011) (quoting Dacanay v. Mendoza, 573 F.2d 1075, 1080 (9th

Cir. 1978)). A district court should also be “mindful of the need to protect the rights of the

mentally incompetent[,]” Ferrelli v. River Manor Health Care Ctr., 323 F.3d 196, 201 (2d

Cir. 2003), and is “under a legal obligation to consider whether [an incompetent] person is

adequately protected.” 30.64 Acres of Land, 795 F.2d at 805 (citing Roberts v. Ohio

Casualty Insurance Co., 256 F.2d 35, 39 (5th Cir. 1958)). Whether federal or state, “[j]udges

play a vital role in fulfilling the [Arizona] legislature’s intent to safeguard those in need of

the protection of conservators and guardians.” Sleeth, 244 P.3d at 1175.

In reviewing a proposed settlement, a district court should consider “whether the net

amount distributed to [a] minor plaintiff [or incompetent person] in the settlement is fair and

reasonable, in light of the facts of the case, the minor’s [or incompetent person’s] specific

claim, and recovery in similar cases.” Robidoux at 1182. “It is the court’s order approving

the settlement that vests the guardian ad litem [or state-appointed conservator] with the legal

power to enforce the agreement.” Id. at 1079. 

III. The Claims

To properly assess whether the parties’ settlement agreement is fair and just for K.T.

and Maria Gonzalez, the Court will discuss the various claims or theories of liability if this

action or a separate action went to trial.

As previously mentioned, two different funds were separately interpled - Gilbert

Ramos’ AMF 401(k) retirement plan and Liberty Life’s $100,000.00 life insurance policy.

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Both interpleader actions were consolidated into this single case because of the similarities

between the incident, the decedent, and the potential claimants to the funds, totaling

$151,105.52 on February 7, 2012. 

The distribution of the AMF 401(k) proceeds is governed by the specific terms of the

AMF 401(k) plan, which were quoted in AMF Bowling’s interpleader complaint: “Paragraph

7.3 of the Plan provides that if the employee is married at this death, the spouse is

automatically the beneficiary.” (Doc. 1, ¶ 18 at 4) It is undisputed that at the time of Gilbert

Ramos’ death, he was married to Sandra Ramos. Thus, according to the plan itself, Sandra

automatically became the beneficiary upon their marriage. Because K.T. is the sole rightful

heir to all of Sandra Ramos’ estate and the parties agree that Marivel Ramos and Maria

Gonzales have no claim to these funds, K.T. is entitled to 100 percent of the residual of

Gilbert’s 401(k) plan or $48,159.32 as of February 7, 2012.

The entitlement to the proceeds from Gilbert’s life insurance policy is more

complicated. Prior to his marriage to Sandra, on March 18, 1997, Gilbert Ramos took out

a $100,000.00 “Five Year Renewable and Convertible Term Life Insurance Policy” with

Liberty Life on his life and named his sister, Marivel Ramos, as the policy’s beneficiary. On

March 18, 2002, Gilbert renewed the policy for an additional five years, and, on May 29,

2004, Gilbert married Sandra. After their marriage, Gilbert again renewed his life insurance

policy on March 18, 2007. After Gilbert’s marriage to Sandra in 2004, the policy premium

was paid by community property funds. The parties agree that, at least, some of the policy

premiums were paid by community funds of the marriage of Gilbert and Sandra Ramos for

the last five year term of the Liberty Life policy. There is no evidence that Sandra signed any

written documents waiving her community property right to receive the life insurance

proceeds. 

K.T. asserts three separate legal theories in support of her entitlment to all of Gilbert’s

life insurance proceeds. First, assuming Arizona law applied, under Arizona’s community

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16 A.R.S. § 25-211(A) provides in relevant part:

A. All property acquired by either husband or wife during the marriage is the

community property of the husband and wife except for property that is:

1. Acquired by gift, devise or descent.

A.R.S. § 25-211(A).

17 “When an insured names someone other than his or her spouse as beneficiary of a

life insurance policy, disposition of the proceeds necessarily involves consideration of

community property rights. When community funds are the source of premiums, as the

parties have agreed here, the surviving spouse has an interest in the proceeds.” In re Estate

of Agans, 196 Ariz. 367, 368, 998 P.2d 449, 450 (Az.Ct.App. 1999) (citing In re Estate of

Alarcon, 149 Ariz. 336, 338, 718 P.2d 989, 991 (Ariz. 1986)). “If someone other than the

spouse is named as beneficiary without the spouse’s consent, there is a constructive fraud

to the extent that the surviving spouse does not receive half of all the community and

otherwise jointly acquired property including the insurance proceeds.” Id. (citing Gaethje

v. Gaethje, 7 Ariz.App. 544, 549-50, 441 P.2d 579, 584-85 (Az.Ct.App. 1968)).

18 In Arizona, children may bring a claim for the wrongful death of a parent. A.R.S.

§ 12–612(A). 

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property laws and case authorities, A.R.S. § 25-21116, In re Estate of Agans, 196 Ariz. 367,

998 P.2d 449 (Az.Ct.App. 1999)17; Matter of Estate of Alarcon, 149 Ariz. 336, 718 P.2d 989

(Ariz. 1986), K.T. contends that, upon Sandra’s death, Sandra’s property, including her

beneficiary rights to the Liberty Life insurance policy, passed to Sandra’s sole surviving heir,

K.T., who is entitled to receive one-half ($50,000.00) of Gilbert’s life insurance benefits. 

Second, if K.T. filed a wrongful death action18 against Marivel Ramos and the Estate

of Gilbert Ramos for the homicide of her mother, she would contend that Marivel was a coconspirator with Gilbert to commit insurance fraud on Marivel’s automobile insurance

company so that Marivel could receive money from her insurance company for the damage

to her automobile. In light of Gilbert’s suicide note, K.T. would argue Gilbert killed Sandra

as a direct result of her botched conspiracy to commit insurance fraud with Gilbert and the

subsequent criminal investigation was the proximate cause of Sandra’s death. Even assuming

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19 Arizona’s “slayer statute” prohibits one “who feloniously and intentionally kills the

decedent” from obtaining any benefits from the decedent’s estate, including the proceeds of

any applicable life insurance policy. A.R.S. §§ 14-2803(A) and (B)(1)(a).

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that Marivel is only found comparatively negligent to a small degree, K.T. argues, it is

probable that Marivel’s liability to K.T. would nevertheless exceed Liberty Life’s

$100,000.00 policy limits. 

Finally, K.T. contends, upon information and belief, that Gilbert called Liberty Life

just prior to committing the murders/suicide to verify that his sister Marivel was the

beneficiary on his life insurance policy. Pursuant to A.R.S. §13-2314.04 (RICO), K.T.

argues that the combined acts of verifying a financial payout to his sister, and his suicide

note regarding ruining his family financially, support an argument that Gilbert’s actions

were, at least in part, calculated to produce a financial gain for Marivel, resulting in a

constructive trust of his life insurance benefits for the estate of the homicide victim, Sandra.

Thus, as the sole beneficiary of the estate of Sandra Ramos, K.T. would receive all of

Gilbert’s life insurance proceeds.

Conversely, Marivel Ramos and Maria Gonzales contend that the distribution of

Gilbert’s life insurance benefits is simply a matter of contract law and they would prevail as

either the primary beneficiary (Marivel Ramos) and/or the second beneficiary (Maria

Gonzalez) if K.T.’s claims to Gilbert’s life insurance proceeds were litigated to a conclusion.

Additionally, Marivel argues that she would prevail on any claim in this action or a separate

lawsuit against her under Arizona’s “slayer statute,”19 citing Protective Life Ins. Co. v.

Mizioch, 2011 WL 3297340 (D.Ariz. August 1, 2011) and Diep v. Rivas, 357 Md. 668, 745

A.2d 1098, 1103 (2000).

In his individual capacity, Devon Ramos claims he was entitled to the majority of

Gilbert’s 401(k) retirement plan but concedes, as the personal representative of Gilbert’s

estate, the estate makes no claim to the Liberty Life insurance proceeds. Moreover, Devon

disputes the application of Arizona’s slayer statute to Gilbert’s 401(k) retirement plan. It is

undisputed that AMF Bowling’s Complaint alleged that paragraph 15.3 of its retirement plan

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provides that Gilbert’s “plan shall be construed, enforced and administered in accordance

with the laws of the Commonwealth of Virginia[,]” not Arizona law. (Doc. 1, ¶ 20 at 5)

IV. Discussion

The Court concludes that the parties’ voluntary resolution of this case is fair and

reasonable. Each of the parties will receive a modest but reasonably proportionate share of

the limited funds available. All agree that continued litigation to a final conclusion would

be expensive with estimates that the combined attorneys’ fees and costs would exceed the

amount of the interpled funds. The wisdom of an early settlement guarantees the parties, not

the lawyers, will financially benefit from a resolution, provides an emotional ending of

immeasurable worth to this horrific tragedy and a beginning of the healing process to all the

Ramos family members, and “avoid[s] the pursuit of pyrrhic victories that accomplish little

but to bankrupt the protected person.” Sleeth, 244 P.3d at 1174. A settlement now may assist

K.T. in obtaining a higher education and provide a modest degree of assistance to Maria in

her declining health and years whereas pursuing further litigation would be risky, lengthy,

and replete with challenging legal issues, such as, choice-of-law and causation questions, and

the unlikelihood that K.T. could collect a favorable judgment beyond the interpled funds.

V. Conclusion

After considering the terms of the proposed settlement, the arguments of counsel at

the February 2, 2012 hearing, the totality of the facts of these consolidated cases, and the

claims and defenses that were alleged or could have been alleged, the Court finds that the

parties’ settlement is fair, reasonable, and in K.T.’s and Maria Gonzalez’ best interests.

Based on the foregoing,

IT IS ORDERED that K.T.’s sealed Supplemental Motion for Approval of Minor’s

Settlement, doc. 57, and the sealed Stipulation for Distribution of Funds, doc. 60, are

GRANTED. The Court approves the settlement of this action and the distribution of the

proceeds as agreed by the parties. A separate distribution order has been issued to the Clerk

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of Court consistent with this order. (Doc. 66) The Clerk is kindly directed to terminate this

action.

Dated this 13th day of February, 2012.

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