UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF FLORIDA

MIAMI DIVISION

www.flsb.uscourts.gov

In re:

HECTOR Y. FAGUNDO SERRANO,

 Debtor.

_______________________________/

Case No. 19-23676-AJC

Chapter 7

TRUSTEE’S MOTION TO APPROVE SETTLEMENT

AND COMPROMISE OF PERSONAL INJURY CLAIM

Any interested party who fails to file and serve a written 

response to this Motion within 21 days after the date of service 

stated in this Motion shall, pursuant to Local Rule 9013-1(D), be 

deemed to have consented to the entry of an order in the form 

attached to this Motion. Any scheduled hearing may then be 

canceled. 

MARCIA T. DUNN, as Chapter 7 Trustee for the above-captioned bankruptcy estate (the 

"Trustee"), pursuant to Federal Rule of Bankruptcy Procedure 9019 and Local Rule 9013-1(D), 

files this Motion to Approve Settlement and Compromise of Personal Injury Claim (the "Motion"), 

and in support thereof, states as follows:

Background

1. On October 11, 2019 (the “Petition Date”), HECTOR Y. FAGUNDO SERRANO

(the “Debtor”), commenced the instant bankruptcy case with the filing of a voluntary petition under 

Chapter 7, Title 11 of the United States Bankruptcy Code.

2. Marcia T. Dunn was appointed as the Chapter 7 Trustee of the Debtor’s bankruptcy 

estate (the “Estate”).

3. On November 14, 2019, the Debtor’s 11 U.S.C. § 341 Meeting of Creditors was 

held and concluded. 

Case 19-23676-AJC Doc 36 Filed 05/12/20 Page 1 of 6
4. Prior to the Petition Date, on or about June 26, 2019, the Debtor retained Justin 

Weinstein, Esquire and Weinstein Legal (collectively "Weinstein Legal") to pursue a personal injury 

claim on his behalf on a contingent fee basis (the "Claim"). 

5. The Claim was scheduled on the Debtor's Amended Schedule A/B line 34 [D.E. 

10].

6. As a result of the filing of the bankruptcy petition, the Claim became property of 

the Estate pursuant to 11 U.S.C. § 541.

7. On January 17, 2020 the Trustee filed an Application to Justin Weinstein Esquire

and Weinstein Legal, as Special Counsel to the Estate Nunc Pro Tunc to October 11, 2019 (the 

“Application to Employ Special Counsel”) [D.E. 26], and on February 12, 2020, an Order granting 

the Trustee’s Application to Employ Special Counsel was entered by the Court [D.E. 31].

8. Since their retention, Weinstein Legal has diligently prosecuted the Claim, and has

received a settlement offer, (the “Settlement”), which the Trustee believes is in the best interest of 

the Estate.

9. Pursuant to the terms of the proposed Settlement, the Defendant has agreed to pay

and the Trustee has agreed to accept, pending this court’s approval, the gross sum of $7,100.00

(Seven Thousand, One Hundred Dollars), (the “Settlement Amount”) to settle the Claim in full.

10. Trustee seeks this Court’s approval to:

a. Accept the Settlement and the Settlement Amount; 

b. Make certain disbursements for the attorney’s fees of Special Counsel,

outstanding costs advanced by Special Counsel, and medical lien settlements as reflected 

in the proposed Closing Statement, a copy of which is attached hereto as Exhibit “A” and 

incorporated by reference.

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c. Execute documents necessary to effectuate the Settlement, including but not 

limited to a release.

Legal Standard for Settlement

11. Bankruptcy Rule 9019(a) provides: “On motion . . . and after a hearing on notice to 

creditors, the debtor . . . and to such other entities as the court may designate, the court may approve 

a compromise or settlement.”1

12. As this Court has previously found, “approval of a settlement in a bankruptcy 

proceeding is within the sound discretion of the Court, and will not be disturbed or modified on

appeal unless approval or disapproval is an abuse of discretion.” In re Arrow Air, Inc., 85 B.R. 

886, 891 (Bankr. S.D. Fla. 1988) (Cristol, J.) (citing Rivercity v. Herpel (In re Jackson Brewing 

Co.), 624 F.2d 599, 602-03 (5th Cir. 1980); Anaconda-Ericsson, Inc. v. Hessen (In re Teltronics 

Servs., Inc.), 762 F.2d 185, 189 (2d Cir. 1985); In re Prudence Co., 98 F.2d 559 (2d Cir. 1938), 

cert. denied sub nom. Stein v. McGrath, 306 U.S. 636 (1939)). 185, 189 (2d Cir. 1985); In re 

Prudence Co., 98 F.2d 559 (2d Cir. 1938), cert. denied sub nom. Stein v. McGrath, 306 U.S. 636 

(1939)). 

13. The test is whether the proposed settlement “falls below the ‘lowest point in the 

range of reasonableness.’” Arrow Air, 85 Bankr. 891 (quoting Teltronics Servs., 762 F.2d 189; 

Cosoff v. Rodman (In re W.T. Grant Co.), 699 F.2d 599, 608 (2d Cir.), cert. denied, 464 U.S. 822 

(1983)). 

1 Rule 9013-1(D) of the Local Bankruptcy Rules for the Southern District of Florida permits inter alia relief without the need for a 

hearing.

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14. According to the United States Eleventh Circuit Court of Appeals, when a 

bankruptcy court decides whether to approve or disapprove a proposed settlement, it must 

consider: 

a. the probability of success in the litigation; 

b. the difficulties, if any, to be encountered in the matter of collection; 

c. the complexity of the litigation involved, and the expense, inconvenience 

and delay necessarily attending it; and 

d. the paramount interest of the creditors and a proper deference to their 

reasonable views in the premises. 

Wallis v. Justice Oaks II, Ltd. (In re Justice Oaks II. Ltd.), 898 F.2d 1544 (11th Cir. 

1990). See Jackson Brewing, 624 F.2d 602, quoted in Arrow Air, 85 B.R. 891. 

15. The Trustee believes that the proposed Settlement meets the standards set forth in 

In re Justice Oaks II, and therefore, recommends approval of the Settlement because it is fair and 

reasonable, falls within the reasonable range of possible litigation outcomes, and is in the best 

interest of the Estate because full settlement precludes any risks associated with further litigation 

and collection in this matter, increases the dividend available to creditors, and allows for a 

distribution of sums and proceeds within a reasonable time. 

WHEREFORE, Marcia T. Dunn, as Chapter 7 Trustee of the Bankruptcy Estate of Hector 

Y. Fagundo Serrano respectfully requests this Honorable Court enter an Order in substantially the 

form attached hereto as Exhibit “B”: (1) granting the instant Motion; (2) approving the Settlement; 

(3) approving disbursements as reflected hereinabove (4) authorizing the Trustee to execute 

documents as necessary to effectuate the Settlement; and (5) granting such other and further relief

as this Court deems just and proper. 

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CERTIFICATE OF SERVICE

I HEREBY CERTIFY that a true and correct copy of the foregoing was furnished on 

May 12, 2020, to the parties who are currently on the list to receive e-mail notice/service for this 

case, and via U.S. Mail to all parties of record on the attached service list. 

 Respectfully submitted, 

DUNN LAW, P.A.

Counsel for Marcia T. Dunn, Trustee

66 West Flagler Street, Suite 400

Miami, Florida 33130

Tel: 786-433-3866

Fax: 786-260-0269

michael.dunn@dunnlawpa.com

By: /s/ Michael P. Dunn

Michael P. Dunn, Esq.

Florida Bar No. 100705

Case 19-23676-AJC Doc 36 Filed 05/12/20 Page 5 of 6
 Label Matrix for local noticing Bank of America Geico General Insurance Company 

 113C-1 4909 Savarese Circle c/o Yates & Schiller, P.A. 

 Case 19-23676-AJC Fl1-908-01-50 7900 Glades Road 

 Southern District of Florida Tampa, FL 33634-2413 Suite 405 

 Miami Boca Raton, FL 33434-4104 

 Tue May 12 09:04:09 EDT 2020 

 Gertrude Jones Hyundai Motor Finance JetStream FCU 

 11901 NW 13 Court Attn: Bankruptcy Attn: Bankruptcy 

 Hollywood, FL 33026-2557 Po Box 20829 Po Box 5487 

 Fountain City, CA 92728-0829 Miami Lakes, FL 33014-1487 

 

 Julie Yates LVNV Funding, LLC LVNV Funding/Resurgent Capital 

 7900 Glades Road, Suite 405 Resurgent Capital Services Attn: Bankruptcy 

 Boca Raton, FL 33434-4104 PO Box 10587 Po Box 10497 

 Greenville, SC 29603-0587 Greenville, SC 29603-0497 

 Midland Funding Midland Funding LLC Nelly Leon 

 2365 Northside Dr Ste 300 c/o Molly Fitzpatrick, Esq 7662 N Southwood Circle 

 San Diego, CA 92108-2709 PO Box 290335 Davie, FL 33328-3851 

 Tampa, FL 33687-0335 

 Office of the US Trustee (p)PORTFOLIO RECOVERY ASSOCIATES LLC Hector Y Fagundo Serrano 

 51 S.W. 1st Ave. PO BOX 41067 9981 NW 135th Street 

 Suite 1204 NORFOLK VA 23541-1067 Hialeah Gardens, FL 33018-1602 

 Miami, FL 33130-1614 

 Justin Weinstein Marcia T Dunn Robert Sanchez Esq 

 713 E Broward Blvd #R 66 West Flagler Street, Ste 400 355 W 49 St. 

 Fort Lauderdale, FL 33301-2015 Miami, FL 33130-1807 Hialeah, FL 33012-3715 

 The preferred mailing address (p) above has been substituted for the following entity/entities as so specified 

 by said entity/entities in a Notice of Address filed pursuant to 11 U.S.C. 342(f) and Fed.R.Bank.P. 2002 (g)(4). 

 Portfolio Recovery 

 Attn: Bankruptcy 

 120 Corporate Blvd 

 Norfold, VA 23502 

 The following recipients may be/have been bypassed for notice due to an undeliverable (u) or duplicate (d) address. 

 (u)Miami End of Label Matrix 

 Mailable recipients 17 

 Bypassed recipients 1 

 Total 18 

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