Opinion ID: 564886
Heading Depth: 2
Heading Rank: 5

Heading: Sufficient Evidence of Apportionment

Text: 24 The task of unscrambling the component parts of a settlement among family members is a difficult one. Related parties frequently settle for a lump sum, giving no thought to how the total would be implicitly allocated among them. Even if the settlement agreement contains an explicit allocation, the apportionment may not reflect reality; because the defendant has no particular interest in how the settlement sum is distributed, the apportionment may reflect merely the preferences of the family members. The task is even more difficult where some of the settlement parties are unemancipated minors: amounts purportedly paid to them may reflect tax or estate law considerations rather than economic reality. 25 In making the apportionment determination, therefore, the ALJ must be wary of an apportionment suggested by the settling parties or their counsel. Instead, the ALJ should look to such objective factors as how the settlement sum was actually distributed among the family members, and the going rate for settlements or judgments for the same types of injuries. Ultimately, this is the type of issue that cannot be resolved with scalpel-like precision and we will accord considerable deference to the ALJ's determination, based on the record and the ALJ's own judgment and experience. 26 In this case, the ALJ did not abuse his discretion in rejecting the allocation proposed by Mr. McClain, the Force family attorney in the civil suit. 4 Mr. McClain made his apportionment after the fact, and in particular, after his former client had filed for LHWCA benefits. He also had an obvious bias in that his firm still represented Mrs. Force. The ALJ was not bound to give any weight to his unilateral view of the settlement. 27 As noted, this case was tried on an incorrect theory of apportionment. The parties therefore did not have an opportunity to present relevant evidence to the ALJ. We therefore remand for retrial on this issue which, subject to the discretion of the ALJ, will probably require further discovery on the question of apportionment.