Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-3_04-cv-01310/USCOURTS-azd-3_04-cv-01310-0/pdf.json

Nature of Suit Code: 360
Nature of Suit: Other Personal Injury
Cause of Action: 28:2671 Federal Tort Claims Act

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Lionell Samuel by )

Theresa Daniels, mother and )

next friend, and )

Theresa Daniels, )

) CIV 04-1310 PCT VAM

Plaintiffs, )

)

v. ) O R D E R

)

United States of America, )

)

 Defendant. )

This Federal Tort Claims Act case was filed on June 24, 2004

by Theresa Daniels on behalf of her minor son and herself. The

complaint alleges that her minor son was sexually abused by a

Government employee while attending the Dennehotso Boarding

School. (Doc. 1). All parties have consented to proceed before

the Magistrate Judge. (Docs. 4, 5). Counsel for plaintiffs and

defendant have negotiated a settlement of the case and filed an

Emergency Joint Motion for Hearing and Order to Approve Settlement

and Dismiss Case. (Doc. 34). All parties agree on the settlement

with the exception of one provision which the parties have now

asked the Court to resolve. 

In this Motion, the parties state they have reached a

settlement agreement which would result in the sum of $450,000

being paid out by defendant. Of the settlement funds, $50,000 in

Case 3:04-cv-01310-VAM Document 36 Filed 10/24/05 Page 1 of 4
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cash will be funded immediately to cover costs (which counsel

estimates at approximately $5,000) with the remainder of the funds

going to Theresa Daniels for her injuries. The sum of $100,000

will be put in a medical care trust to provide medical,

psychological treatment and educational expenses for Lionell

Samuel until he turns the age of 30. Since Lionell Samuel is

presently 15 years old, this would provide for 15 years of

medical, psychological and educational expenses. The settlement

provides for attorney's fees in the amount of $100,000. This

amount is less than the 25% allowed by statute. Finally, the

settlement provides that the United States will purchase an

annuity contract from Hartford Life Insurance Company on behalf of

Lionell Samuel, which would pay the amount of $527.52 per month

for life beginning January 8, 2008 (when Lionell turns 18) and

increasing at 3% annually for life and guaranteed for 25 years. 

It is this final piece of the settlement which Theresa Daniels

objects to. Ms. Daniels has expressed to the Court her acceptance

of all remaining provisions in the settlement but she asks the

Court to require the payment of $200,000 in cash to her son when

he turns 18 as opposed to the purchase of the annuity which would

pay for life. 

In the hearing conducted on the approval of the settlement,

Ms. Daniels indicated concern over her son's ability to obtain an

education and psychological treatment. The Court explained that

this is taken care of in the medical care trust that will be

funded with $100,000 available to Lionell until he reaches the age

of 30. Ms. Daniels indicated it is very important to her son that

Case 3:04-cv-01310-VAM Document 36 Filed 10/24/05 Page 2 of 4
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he have a new home and she asks that the Court allow the payment

of $200,000 to Lionell on his 18th birthday so that he can build a

home of his own. She further indicated the family is living in a

"shack" on the reservation as a result of the hardships of this

case. Ms. Daniels' husband, Lionell's stepfather, also expressed

the need for the family to have a different home. Plaintiffs'

attorney believes that Lionell Samuel's interests are best served

by purchasing the annuity.

This was filed as an emergency motion because the parties

have locked in the purchase of the structured settlement portion

of the settlement agreement. It is necessary that the structured

settlement be funded by November 23, 2005 in order to preserve the

settlement. (Doc. 34 at p. 2). This is a settlement that has

been negotiated over several months. 

Lionell Samuel was not present at the hearing. The Court

heard from counsel for plaintiffs and defendant and testimony by

plaintiff Theresa Daniels. After carefully considering the

testimony of Theresa Daniels as to why her son should receive the

$200,000 in cash on his 18th birthday, the Court has decided that

the annuity is in the best interests of Lionell Samuel. The Court

finds that the annuity sum should adequately take care of

Lionell's living expenses until he can complete his education and

begin working. The Court is concerned that if Lionell received

the $200,000 on his 18th birthday, the sum would be spent

immediately and not be available to Lionell for his future needs. 

The Court finds it is in Lionell's best interests that he receive

the annuity as opposed to the cash. 

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IT IS THEREFORE ORDERED granting the Emergency Joint Motion

for Hearing and Order to Approve Settlement. (Doc. 34). The

Court approves the settlement in the form set forth in the Motion

with the $200,000 going to an annuity rather than being paid to

Lionell Samuel in cash.

IT IS FURTHER ORDERED that the parties shall advise the Court

when the settlement has been funded and dismissal may be entered. 

DATED this 19th day of October, 2005.

Case 3:04-cv-01310-VAM Document 36 Filed 10/24/05 Page 4 of 4