Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_07-cv-00094/USCOURTS-cand-3_07-cv-00094-2/pdf.json

Parties Involved:
Dennis Murphy
Plaintiff
Dolores Murphy
Defendant
United States of America
Defendant

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JOSEPH P. RUSSONIELLO (CSBN 44332)

United States Attorney

JOANN M. SWANSON (CSBN 88143)

Chief, Civil Division

JAMES A. SCHARF (CSBN 152171)

Assistant United States Attorney

 150 Almaden Boulevard, Suite 900

San Jose, CA 95113

Telephone: (408) 535-5044

FAX: (408) 535-5081

james.scharf@usdoj.gov

Attorneys for Defendant

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

DENNIS MURPHY,

Plaintiff,

v.

UNITED STATES OF AMERICA,

DOLORES MURPHY,

Defendants.

 

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No. C 07 0094 JSW

STIPULATION AND AGREEMENT OF

COMPROMISE AND SETTLEMENT 

AND [PROPOSED] ORDER

IT IS HEREBY STIPULATED AND AGREED by and between plaintiff Dennis Murphy

(“plaintiff”) and defendant UNITED STATES OF AMERICA (hereinafter the “Federal

Defendant”), by and through its undersigned counsel, as follows:

1. The parties do hereby agree to settle, compromise and dismiss the abovecaptioned action (“This Action”) under the terms and conditions set forth herein.

2. The Federal Defendant agrees to pay the sum of $1,000,000.00 (“the settlement

amount”) to plaintiff under the terms and conditions set forth herein. Plaintiff is responsible for

satisfying any and all outstanding liens relating to plaintiff’s medical treatment arising out of the

subject matter of This Action. The Federal Defendant does not assert a lien for reimbursement of

the cost of medical care previously provided arising out of the subject matter of This Action. 

Case 3:07-cv-00094-JSW Document 24 Filed 03/10/08 Page 1 of 7
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SETTLEMENT AGREEMENT

C 07 0094 JSW

3. The plaintiff and his heirs, executors, administrators, assigns and attorneys hereby

agree to accept the settlement amount, in full and final settlement and satisfaction of the claims

raised in This Action under the terms and conditions set forth herein.

4. It is also agreed, by and among the parties, that the settlement amount represents

the entire amount payable to plaintiff and his heirs, executors, administrators, assigns and

attorneys.

5. It is also agreed, by and among the parties, that the settlement amount shall be

made payable to plaintiff and his attorneys, Lopez, Hodes, Restaino, Milman & Skikos and Law

Offices of Jeanne Anne Steffin, and shall be mailed to Mr. Milman’s attorneys’ business address

or wired to his account. 

6. It is also agreed, by and among the parties, that neither plaintiff nor any of his

attorneys may make any claim for attorney’s fees or other costs against the Federal Defendant. It

is also agreed, by and among the parties, that the respective parties will bear their own costs,

fees, and expenses and that any attorney’s fees owed by the plaintiff will be paid out of the

settlement amount and not in addition thereto.

7. It is also understood, by and among the parties, that pursuant to Title 28, United

States Code, Section 2678, that if plaintiff incurred any attorney’s fees for services rendered in

connection with this action, said fees shall not exceed 25 percent of the amount of the

compromise settlement.

8. In consideration of the settlement amount as set forth above, the plaintiff agrees

that he will immediately upon execution of this agreement, execute a Stipulation of Dismissal,

which stipulation shall dismiss, with prejudice, all claims asserted in This Action and any claims

that could have been asserted in This Action. The fully executed Stipulation of Dismissal will be

held by counsel for the Federal Defendant and will be filed with the Court upon receipt by

plaintiff’s attorneys of the settlement amount.

9. In consideration of the payment of the settlement amount as set forth above, the

plaintiff hereby releases and forever discharges the Federal Defendant, and any and all of their

past and present agencies, officials, employees, agents, attorneys, successors, and assigns from

Case 3:07-cv-00094-JSW Document 24 Filed 03/10/08 Page 2 of 7
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SETTLEMENT AGREEMENT

C 07 0094 JSW

any and all obligations, damages, liabilities, causes of actions, claims, and demands of any kind

and nature whatsoever, whether suspected or unsuspected, arising in law or equity, arising from

or by reason of any and all known, unknown, foreseen, or unforeseen injuries, and the

consequences thereof, resulting from the facts, circumstances and subject matter that gave rise to

This Action, including all claims under the Federal Tort Claims Act (“FTCA”), all constitutional

or Bivens claims, any and all current or future claims by plaintiff’s children, and any other claim

relating to the subject accident of February 11, 2006, and any and all claims that could have been

asserted in the Complaint, including any and all claims for personal injury. This includes any

and all wrongful death actions by plaintiff’s spouse or family members arising out of the subject

matter of This Action. This does not include plaintiff’s pending FTCA claim for failure to

secure a wheelchair with resultant alleged lower extremity injuries. Plaintiff and his attorneys

waive any rights they may have to structure all or part of the proceeds, including attorney fees.

10. With respect to the payment of the settlement amount, the United States will not

sign any annuity applications or uniform qualified settlement forms or any equivalent forms, nor

will the United States pay the settlement amount into a qualified settlement fund or its

equivalent. Plaintiff and their attorneys agree that neither they nor their representatives or agents

will use any portion of the settlement amount to either (i) purchase or attempt to purchase a

structured settlement annuity or a qualified settlement annuity or (ii) place or deposit or attempt

to place or deposit any portion of the settlement amount in a qualified settlement fund or account

or their equivalent, such as a 468B fund or account. Once the plaintiff has cashed the settlement

draft or wire transfer, there is nothing in this paragraph that precludes plaintiff from using the

settlement proceeds to either (i) purchase a standard, non-structured settlement annuity or nonqualifying settlement annuity or (ii) fund a Special Needs Trust, but plaintiff does agree that he

will not represent to any person, entity, or agency (federal, state, or local) that he is purchasing

structured settlement annuities. 

11. In consideration of the payment of the settlement amount as set forth above, the

plaintiff further agrees that he may not and will not use or rely on the incidents and actions

underlying the Complaint in any other administrative proceeding, state court action or federal

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SETTLEMENT AGREEMENT

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court action to prove any kind of further or future claim against the United States or its agencies

and employees.

12. The provisions of California Civil Code Section 1542 are set forth below: 

A general release does not extend to claims which the creditor does not know or suspect

to exist in his favor at the time of executing the release, which if known by him must

have materially affected his settlement with the debtor.

The plaintiff having been apprised of the statutory language of Civil Code Section 1542, and

fully understanding the same, nevertheless elects to waive the benefits of any and all rights he

may have pursuant to the provision of that statute and any similar provision of federal law. The

plaintiff understands that if the facts concerning the plaintiff’s alleged damages and the liability

of the Federal Defendant, or its agents, servants, or employees, for damages pertaining thereto are

found hereafter to be other than or different from the facts now believed by him to be true, this

agreement shall be and remain effective notwithstanding such material difference.

13. The parties acknowledge that neither this agreement nor anything contained herein

shall constitute an admission of liability or fault on the part of the Federal Defendant or its

agents, servants, or employees. This agreement is entered into by the parties for the purpose of

compromising disputed claims, avoiding the expenses and risks of litigation, and buying peace.

14. This agreement may be pled as a full and complete defense to any action or other

proceeding, including any local, state or federal administrative action, involving any person or

party which arises out of the claims released and discharged by this agreement.

15. If any withholding or income tax liability is imposed upon plaintiff based on

payment of the settlement sum as set forth herein, plaintiff shall be solely responsible for paying

any such liability. Plaintiff will indemnify and hold harmless the Federal Defendant from any

liability the Federal Defendant may incur from any government agency arising out of any failure

by plaintiff to pay any tax liability he might be responsible for from any government agency. 

Plaintiff will also indemnify and hold harmless the Federal Defendant from any liability the

Federal Defendant may incur from any lien claimant arising out of any failure by plaintiff to

satisfy the outstanding liens. Plaintiff will also indemnify and hold harmless the Federal

Defendant from any liability the Federal Defendant may incur from any claim, including but not

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SETTLEMENT AGREEMENT

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limited to a loss of consortium claim, by plaintiff’s spouse arising out of the subject matter or

settlement of This Action. Plaintiff will also indemnify and hold harmless the Federal Defendant

from any liability the Federal Defendant may incur from any wrongful death claim by plaintiff’s

spouse or family members arising out of the subject matter of This Action. 

16. Plaintiff has been informed that payment of the settlement amount may take some

time to process, which could take up to three months. However, defendant will attempt to pay

the settlement amount as quickly as is reasonably possible. 

17. Defendant makes no guarantee as to whether the settlement will or will not affect

plaintiff’s eligibility to receive VA benefits in the future. 

18. The parties agree that the District Court shall retain jurisdiction over this matter

for the purposes of resolving any dispute alleging a breach of this agreement.

19. Each party acknowledges that they are fully aware of and understand all of the

terms of the agreement and the legal consequences thereof. It is further acknowledged that the

parties have mutually participated in the drafting of this agreement and it is agreed that no

provision herein shall be construed against any party hereto by virtue of the drafting of this

agreement.

20. If any provision of this agreement shall be held invalid, illegal, or unenforceable,

the validity, legality, and enforceability of the remaining provisions shall not in any way be

affected or impaired thereby.

21. This instrument shall constitute the entire agreement between the parties, and it is

expressly understood and agreed that this agreement has been freely and voluntarily entered into

by the parties hereto. The parties further acknowledge that no warranties or representations have

been made on any subject other than as set forth in this agreement.

22. The parties agree that this Stipulation for Compromise Settlement and Release,

including all the terms and conditions of this compromise settlement and any additional

agreements relating thereto, may be made public in their entirety, and the plaintiff expressly

consents to such release and disclosure pursuant to 5 U.S.C. § 552a(b).

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SETTLEMENT AGREEMENT

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23. The persons signing this Stipulation and Agreement warrant and represent that

they possess full authority to bind the persons on whose behalf they are signing to the terms of

the settlement.

24. This agreement may not be altered, modified or otherwise changed in any respect

except in writing, duly executed by all of the parties or their authorized representatives.

25. Plaintiff’s family members, by signing this agreement, expressly waive any right

they may have to file a wrongful death claim relating to the subject matter of This Action. 

/s/ Dennis Murphy

Dated: February 6, 2008 

DENNIS MURPHY

Plaintiff

/s/ Dolores Murphy

Dated: February 6, 2008 ____________________________

DOLORES MURPHY 

/s/ Linda Murphy

Dated: February 6, 2008 ____________________________

LINDA MURPHY

/s/ Terry Murphy

Dated: February 6, 2008 ____________________________

TERRY MURPHY

/s/ Jeffrey A. Milman

Dated: February 6, 2008 

JEFFREY A. MILMAN

Attorney for Plaintiff

/s/ Jeanne Anne Steffin

Dated: February 6, 2008 ____________________________

JEANNE ANNE STEFFIN

Attorney for Plaintiff

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SETTLEMENT AGREEMENT

C 07 0094 JSW

JOSEPH P. RUSSONIELLO

United States Attorney

Dated: February 6, 2008 By: /s/ James Scharf 

JAMES A. SCHARF

Assistant United States Attorney

Attorney for the Federal Defendant

United States of America

PURSUANT TO THE ABOVE STIPULATION AND AGREEMENT, 

APPROVED AND SO ORDERED:

Dated: 

Hon. Jeffrey S. White

United States District Court Judge

March 10, 2008

Case 3:07-cv-00094-JSW Document 24 Filed 03/10/08 Page 7 of 7