UNITED STATES DISTRICT COURT

DISTRICTOF NEW HAMPSHIRE

LISA MURPHY, Individually and as Mother

and Next Friend of D.B. ,

Plaintiffs,

U•S. DISTRICT COURT DISTq1CT pF NEWWap

i4

SFP 12 20

FIL€D

v. ) Civil No. 06459-JD

UNITED STATES OF AMERICA and

FRANKLIN REGIONAL HOSPITAL,

Defendants.

ORDERAPPROVLNG SETTLEIbLNT BETWEEN

t nqrrr?n STATES AND PLAINTIFF ON BEHALF OF MINO R

On this ~7kday of jfA6a&2008, the above-referenced matter came on for decision

and approval by the Court as to the reasonableness of a settlement between the United States of

America and D.B ., a minor. A proposed se ttlement between Franklin Regional Hospital and

D.B. is addressed in a separate Order . Plaintiff D.B., a minor, agrees to this settlement through

his counsel of record, his natural guardian of the person, Lisa Murphy, and the guardian of his

estate, the Office of Public Guai+dian . Plaintiff Lisa Murphy, a parent of D.B., agrees to this

settlement individually and through counsel of record . Defendant United States of America

assented to Plaintiffs' motion for this Court's approval and the form and content of this Order

through its counsel of record . The New Hampshire Department of Health and Human Se rvices,

Third Party Liability Unit, assented to Plaintiffs' motion and the form and content of this Order

through its counsel of record .

The complete and precise terms and conditions of the settlement between the United

States and D.B. are set forth in the Stipulation For Compromise Settlement And Release Of

Case 1:06-cv-00459-JD Document 48 Filed 09/12/08 Page 1 of 5
Federal Tort Claims Act Claims Pursuant To 28 U .S.C. § 2677 (hereafter "Stipulation") and the

Irrevocable Reversionary Inter Vivos Grantor Medical Care Trust For The Benefit of D.B.

(hereafter "Reversionary Trust"), attached as Exhibits "A" and "B" to this Order. The Court has

reviewed the Stipulation and the Reversionary Trust, and heard any needed arguments in favor of

this settlement. The Court is fhlly 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 and the availability of sufficient funds in the account established pursuant to 42

U.S.C. § 233(k) to pay the settlement in its entirety.

The Court fmther finds that, under the law of New Hampshire, the appointment of a

Guardian ad Litem is not necessary, but the Office of Public Guardian has been appointed

guardian of the estate of D.B. as required by N.H. Rev. Stat. Ann. 464-A:42.

The Court specifically recognizes that this is a settlement between the United States and

the plaintiff D.B. and that the settlement includes the purchase of annuities by the United States,

pursuant to the terms and conditions of the Stipulation . The Court finds that, because the

information available about the proposed settlement is sufficient to permit the Court to assess the

reasonableness of the settlement with the United States, certain terms of Local Rule 17 .1 need

not be met. Specifically, pursuant to the authority granted by Superior Court Rule 111(k)(3), as

adopted by this Court, the Court finds that the precise terms of Superior Court Rule i l l(K)(1),

111(K)(2)(axc) and 111(K)(2)( f}{g) need not be complied with . The Court finds that the terms

and conditions of this settlement, as set forth in the Stipulation and Reversionary Trust, are fair,

reasonable, and in the best interests of D.B., the minor plaintiff. Therefore, the Court finds goo d

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Case 1:06-cv-00459-JD Document 48 Filed 09/12/08 Page 2 of 5
cause to approve the settlement despite the non-compliance with some of the precise terms of

Local Rule 17.1 and Superior Court Rule 1 11 .

IT IS THEREFORE ORDERED, ADJUDGED, AND DECREED that the settlement, as

set forth in Exhibits A and B, is hereby approved . It is further Ordered that Lisa Murphy, as

parent and guardian of the person of D.B., a minor, is authorized and required to sign the

Stipulation, the Reversionary Trust, and any other documents that are necessary to consummate

this settlement, and to provide any information and documentation necessary to complete the

purchase of annuity contracts and the establishment of the Reversionary Trust, on behalf of D .B.,

a minor. The Office of the Public Guardian, as the duly-appointed guardian of the estate of D .B .,

is similarly authorized and required to sign the Stipulation, the Reversionary Trust, and any other

documents that are necessary to consummate this settlement, and to provide any information and

documentation necessary to complete the purchase of annuity contracts and the establishment of

the Reversionary Trust, on behalf of D.B ., a minor.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the settlement amount

of Three Million Five Hundred Thousand Dollars ($3,500,000 .00) (hereinafter "Settlement

Amount") shall be distributed according to the terms and conditions of the Stipulation . With

respect to the settlement check that will be made payable to the named Plaintiffs pursuant to

Paragraph 3.a.i. of the Stipulation, the Court hereby Orders the Plaintiffs to endorse that check

over to their attorneys to be deposited by the attorneys into their client trust account to be used to

pay the attorneys' fees, costs, and expenses herein approved and to pay any lien or claim for

reimbursement including, but not limited to payment, to the State of New Hampshire, care of

DHHS-TPL, in the amount of $170,610 to discharge the Medicaid lien for incident-relate d

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medical expenses provided, billed and paid for from the date of incident, i .e. minoias birahday,

through June 23, 2008 .

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that attomeya' fees in this

action shall be twenty-five percent (25%) of the settlement amount and shall be paid as provided

in the Stipulation. The Court finds that the costs and expenses associated with the litigation are

$101,187.78 and that such costs and expenses arc fair, reasonable, and necessa ry. The plaintiffs

have attributed 95%, or $95,178 .39, of such costs to the litigation with the United States, with the

remainder to be paid through the settlement between the plaintiffs and FRH, as set forth in the

separately-filed Assented-to Motion for Approval of Minor's Settlement with Franklin Regional

Hospital. It is hereby Ordered that such costs and expenses are approved and are to be paid as

provided in the Stipulation. The Court finds that Plaintiffs are legally responsible for any and all

past, present, and future liens or claims for payment or reimbursement, including any liens or

claims for payment or reimbursement by Medicaid, Medicare, or healthcare providers. The

Court hereby Orders the plaintiffs, by and th rough their attorneys, to satisfy or resolve any and all

such past, present, and future liens or claims for payment or reimbursement asserted by any

individual or entity, including Medicaid and Medicare. The Court further Orders that plaintiffs

and their attorneys shall provide to the United States the information required by the Stipulation

regarding the satisfaction or resolution of such liens or claims for payment or reimbursement

within the time specified in said Stipulation. Plaintiffs, through their lawyers, have represented

to this Court that, apart from the Medicaid lien held by the New Hampshire Department of

Health and Human Services Third Party Liabi lity Unit (DHHS-TPL), and after exercising due

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diligence, they have not been able to identiiy any other potential liens or claims held by the State

of New Hampshire or its offices, subdivisions, or employees.

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

Trust established by the United States and the annuity contracts purchased and owned by the

United States as part of this settlement are assets of the United States, and that no State,

including the State of New Hampshire through the DHHS-TPL, shall have any past, present, or

future interest or right in that Reversionary Trust and annuity contracts or in the remainder of

either that Reversionary Trust and annuity contracts . The DHHS-TPL has agreed to sign, and

shall sign, the waiver and release document, attached as Exhibit C, that the United States has

required the plaintiffs to obtain as part of the settlement.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that plaintiffs, upon final

execution of the Stipulation and the Reversionary Trust and within five (5) business days after

plaintiffs receive the settlement check as provided in Paragraph 3 .ai. of the Stipulation, shall file

with the Court a stipulated dismissal of this action, with prejudice, with each party to the action

bearing its own fees, costs, and expenses.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Court will not

retain jurisdiction over the action against the United States or the settlement .

STATES DISTRICT JUDGE

Dated this~ day of 2008

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