Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_14-cv-02912/USCOURTS-cand-3_14-cv-02912-2/pdf.json

Nature of Suit Code: 362
Nature of Suit: Medical Malpractice
Cause of Action: 28:1402 Medical Malpractice

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DONAHUE & HORROW, LLP

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[PROPOSED] ORDER RE PETITION TO COMPROMISE CLAIM OF MINOR JORDAN CAZAREZ BY AND THROUGH HIS 

GUARDIAN AD LITEM, BEATRIZ ESTRADA

THOMAS E. DONAHUE (SBN 156279)

NICHOLE D. PODGURSKI (SBN 251240)

DONAHUE & HORROW, LLP

1960 E. Grand Ave., Suite 1215

El Segundo, California 90245

Telephone: (310) 322-0300

Facsimile: (310) 322-0302

Email: tdonahue@donahuehorrow.com

Email: npodgurski@donahuehorrow.com

Attorneys for Plaintiff,

J.C., a minor, by and through his Guardian Ad 

Litem, Beatriz Estrada

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

J.C., a minor, by and through his Guardian 

Ad Litem, Beatriz Estrada,

Plaintiff,

vs.

UNITED STATES OF AMERICA; 

SUTTER MEDICAL CENTER OF 

SANTA ROSA; VIRGINIA MEADE, 

D.O., PEDIATRIX MEDICAL GROUP 

OF CALIFORNIA and DOES 1 

THROUGH 50, inclusive,

Defendants.

Case No.: 3:14-cv-02912-JD

[PROPOSED] ORDER RE 

PETITION TO COMPROMISE 

CLAIM OF MINOR JORDAN 

CAZAREZ BY AND THROUGH HIS 

GUARDIAN AD LITEM, BEATRIZ 

ESTRADA

Before the Court is plaintiff’s request for approval of the reasonableness of a 

settlement between Defendants the United States of America and Sutter Medical 

Center of Santa Rosa and Plaintiff Jordan Cazarez, a minor, by and through his 

guardian ad litem, Beatriz Estrada. 

Case 3:14-cv-02912-JD Document 61 Filed 09/30/15 Page 1 of 7
DONAHUE & HORROW, LLP

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[PROPOSED] ORDER RE PETITION TO COMPROMISE CLAIM OF MINOR JORDAN CAZAREZ BY AND THROUGH HIS 

GUARDIAN AD LITEM, BEATRIZ ESTRADA

The complete and precise terms and conditions of the settlement with the USA 

are set forth in the Stipulation For Compromise Settlement And Release Of Federal 

Tort Claims Act Claims Pursuant To 28 U.S.C. § 2677 (hereinafter “Stipulation"), 

attached as Exhibit A. The complete and precise terms and conditions of the 

settlement with Sutter are set forth in the Release attached hereto as Exhibit B. The 

Court has reviewed the papers submitted by counsel in favor of this settlement. The 

Court is fully informed of the specifics of the full and final terms and conditions of the 

settlement, including the necessity of the approval by the Attorney General of the 

United States or his designee, and the necessity that the settlement must be approved 

in good faith. The Court finds that the terms and conditions of this settlement, as set 

forth in the moving papers, are fair, reasonable, and in the best interests of Jordan 

Cazarez, a minor.

IT IS THEREFORE ORDERED, ADJUDGED, AND DECREED that the 

settlement between Defendants USA and Sutter and Claimant and his parents, is 

approved. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED:

1. The Settlements as to Defendants USA and Sutter are approved as set 

forth in Exhibit A and Exhibit B. The amount to be paid by the United States of 

America is ONE MILLION EIGHT HUNDRED AND SEVENTY FIVE 

THOUSAND Dollars ($1,875,000). The amount to be paid by Sutter is ONE 

MILLION EIGHT HUNDRED SEVENTY-FIVE THOUSAND Dollars 

($1,875,000), for a total of THREE MILLION, SEVEN HUNDRED AND FIFTY 

THOUSAND Dollars ($3,750,000) (hereinafter “Settlement Amount”). The payer, 

the United States of America, upon approval from the Attorney General of the United 

States or his designee, and the payer Sutter (collectively “payers”), shall disburse the 

proceeds of the settlement in the following manner:

Case 3:14-cv-02912-JD Document 61 Filed 09/30/15 Page 2 of 7
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[PROPOSED] ORDER RE PETITION TO COMPROMISE CLAIM OF MINOR JORDAN CAZAREZ BY AND THROUGH HIS 

GUARDIAN AD LITEM, BEATRIZ ESTRADA

2. The payer, the United States of America, will pay by wire transfer to the 

Donahue & Horrow, LLP Client Trust Account, ONE MILLION EIGHT 

HUNDRED AND SEVENTY FIVE THOUSAND Dollars ($1,875,000) and the 

payer, Sutter will pay by wire transfer or check to the Donahue & Horrow, LLP Client 

Trust Account, ONE MILLION ONE HUNDRED AND TWENTY FIVE 

THOUSAND Dollars ($1,125,000) plus the right to receive periodic payments 

from an annuity contract that Sutter will purchase out of which the following 

disbursements will be from said Client Funds Account:

a. To Jordan Cazarez, a minor, by and through his guardian ad litem, 

Beatriz Estrada, George Cazarez, and Donahue & Horrow, LLP, their attorneys 

of record, the sum of THREE MILLION Dollars ($3,000,000.00) (hereinafter 

“Upfront Cash”). From this amount, Donahue & Horrow, LLP will distribute 

the settlement proceeds as follows:

i. $800,000.00 to Beatriz Estrada and George Cazarez, 

parents of Jordan Cazarez. (From this amount, 

$191,666.67 will be paid to Donahue & Horrow, LLP as 

Attorneys’ fees and $608,333.33 will be distributed to 

Beatriz Estrada and George Cazarez for the purchase of a

home and furnishings. Any remaining amount, if any, 

after the purchase of the home and furnishings, will be 

deposited into the Jordan Cazarez Special Needs Trust.

ii. Attorneys’ fees in the amount of $471,368.88 drawn and 

payable to the order of Plaintiffs’ attorney, Donahue & 

Horrow, LLP;

iii. Reimbursement for costs and expenses and cost reserve 

paid by the Plaintiffs’ attorney, Donahue & Horrow, LLP 

in the amount of $200,000.00; 

Case 3:14-cv-02912-JD Document 61 Filed 09/30/15 Page 3 of 7
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[PROPOSED] ORDER RE PETITION TO COMPROMISE CLAIM OF MINOR JORDAN CAZAREZ BY AND THROUGH HIS 

GUARDIAN AD LITEM, BEATRIZ ESTRADA

iv. Payment of the Medi-Cal lien in the amount of 

$85,318.60. Of this amount, payment of $24,079.07 to 

Donahue & Horrow, LLP as an Attorney Fee and the 

balance of $61,239.53 to Medi-cal;

v. The balance of the proceeds to Jordan Cazarez is 

$1,443,312.52 to be deposited into a Special Needs Trust 

established on behalf of the minor, Jordan Cazarez. The 

United States of America is not a party to the Special 

Needs Trust, and has no involvement therein. 

b. Sutter will purchase a single premium annuity contract on behalf of 

Plaintiff Jordan Cazarez from Berkshire Hathaway Life Insurance Company of 

Nebraska, an annuity company rated A++ by A.M. Best and Co., for the sum of 

SEVEN HUNDRED AND FIFTY THOUSAND Dollars ($750,000.00), 

which by its terms provides the right to receive payments in the amount of 

$2,695.00 per month for the life of Plaintiff Jordan Cazarez for 30 years certain, 

whichever is longer and will be payable to the Jordan Cazarez Special Needs 

Trust. This annuity is to be purchased by Defendant Sutter only. The 

description of the Annuity is attached hereto as Exhibit C. 

3. Regarding the Special Needs Trust, the Court further orders as follows:

a. Jordan Cazarez has a disability that substantially impairs his ability 

to provide for his own care or custody and constitutes a substantial handicap, 

namely severe developmental delay and cerebral palsy. He is likely to have 

special needs that will not be met without the Trust proposed herein. The 

money to be paid to the Trust does not exceed the amount that appears 

reasonably necessary to meet his special needs.

b. The Jordan Cazarez Special Needs Trust (the "Trust"), a copy of 

which is attached to the Petition and is attached hereto as Exhibit D, is 

Case 3:14-cv-02912-JD Document 61 Filed 09/30/15 Page 4 of 7
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[PROPOSED] ORDER RE PETITION TO COMPROMISE CLAIM OF MINOR JORDAN CAZAREZ BY AND THROUGH HIS 

GUARDIAN AD LITEM, BEATRIZ ESTRADA

established by this Order of this Court, is in the best interest of Jordan Cazarez, 

is done under Probate Code §§ 3600 et seq., and all of its terms and provisions 

are approved. Wells Fargo Bank is appointed Trustee of the Trust, and is 

authorized to execute the Trust. The United States of America is not a party to 

the Special Needs Trust, and has no involvement therein.

c. The Jordan Cazarez Special Needs Trust will be subject to the 

continuing jurisdiction of the California Superior Court. This Court will retain 

jurisdiction only until funding is complete and jurisdiction has transferred to the 

Superior Court of Sonoma County. Plaintiff is ordered to file a status report 

every 30 days from the date of this order regarding the status of disbursement of 

the settlement funds, and plaintiff is further ordered to petition the Sonoma 

County Superior Court to accept transfer jurisdiction over the special needs 

trust when disbursement of the settlement proceeds is complete. Finally, 

plaintiff is required to file in this Court proof of the Superior Court’s acceptance 

of transfer of jurisdiction, at which time this Court’s jurisdiction will terminate.

d. The Trustee shall file accounts and reports for Court approval in 

the manner and frequency required by Probate Code sections 1060, et seq. and 

2620 et seq. The compensation of the Trustee is subject to review by the Court, 

but the Trustee is authorized to make periodic payments on account according 

to its special needs trust fee schedule in existence from time to time. The 

Trustee may pay agents and advisors and other expenses, except that 

compensation paid to the Trustee’s attorneys shall be subject to Court 

approval. All statutory liens in favor of the Department of Health Care 

Services, the State Department of Mental Health, the State Department of 

Developmental Services, and any county or city and county in this state shall 

first be satisfied before any payment to the Trust. Bond is waived.

Case 3:14-cv-02912-JD Document 61 Filed 09/30/15 Page 5 of 7
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[PROPOSED] ORDER RE PETITION TO COMPROMISE CLAIM OF MINOR JORDAN CAZAREZ BY AND THROUGH HIS 

GUARDIAN AD LITEM, BEATRIZ ESTRADA

e. Pursuant to California Probate Code § 2574(c) and California 

Financial Code § 1561.1, the trustee may invest in mutual funds, including 

proprietary mutual funds and in bonds that mature more than 5 years in the 

future.

4. The Court further orders that Guardian ad Litem and plaintiff’s mother, 

Beatriz Estrada, is authorized and directed to execute any and all documents 

reasonably necessary to carry out the terms of the settlement.

5. Beatriz Estrada shall be responsible for maintaining a current address on 

behalf of Jordan Cazarez with the annuity company and the United States of America, 

until such time as the above payment schedule is completed. 

6. Plaintiff shall have seventy-five (75) days to submit proof of funding of 

the annuity to the Court.

7. This case shall proceed against the remaining defendants, Virginia

Meade, D.O. and Pediatrix Medical Group, in California state court.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Plaintiff, 

upon final execution of the Stipulation and receipt from the United States Attorney’s 

Office for the Northern District of California that it has received the cash from the 

United States of America as set forth in Paragraph 3.a of the Stipulation, shall cause 

their attorney to file with the United States District Court for the Northern District of 

California a dismissal of this action against the United States of America with 

prejudice, with each party bearing its own costs, expenses, and fees. After Plaintiff 

has received the cash from Sutter, plaintiff shall cause their attorney to file with the 

United States District Court for the Northern District of California a dismissal of this 

action against Sutter with prejudice, with each party bearing its own costs, expenses, 

and fees.

Subject to the terms and conditions set forth in The Stipulation, Plaintiff’s 

attorney shall distribute said Upfront Cash to Beatriz Estrada and George Estrada and 

Case 3:14-cv-02912-JD Document 61 Filed 09/30/15 Page 6 of 7
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[PROPOSED] ORDER RE PETITION TO COMPROMISE CLAIM OF MINOR JORDAN CAZAREZ BY AND THROUGH HIS 

GUARDIAN AD LITEM, BEATRIZ ESTRADA

to the Jordan Cazarez Special Needs Trust after paying or resolving any lien or claim 

for reimbursement or payment for which plaintiff has agreed to be legally responsible 

under the terms of the Stipulation.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Court 

will not retain jurisdiction over the action against the United States, Sutter, or the 

settlement, except as otherwise provided in this order.

The Clerk is requested to administratively close the case.

DATED: September 30, 2015 _________________________________

U.S. District Judge James Donato

Case 3:14-cv-02912-JD Document 61 Filed 09/30/15 Page 7 of 7