2 total
Court approved $4M in settlements for brain-injured plaintiff but voided 30% contingency fee agreement.
The plaintiff, who suffered a severe traumatic brain injury in a motor vehicle accident, sought court approval for two settlements: a $1 million tort settlement reached in 2007 and a $3 million statutory accident benefits settlement.
The court approved both settlements, noting the tort settlement should have had a capacity assessment at the time.
However, the court found the 30% contingency fee agreement signed on the eve of the accident benefits settlement was not fair and reasonable under the Solicitors Act.
The agreement was declared void, and the court reduced the legal fees to 17% of the recovery.
The court approved a $650,000 accident benefits settlement for a disabled plaintiff but reduced legal fees to 15% and rejected the proposed guardianship management plan.
The court addressed two applications: a motion for court approval of an accident benefits settlement for a minor, Stephan Markus, and a guardianship application by his mother, Natalie Nicholas.
The court approved the accident benefits settlement amount of $650,000 but reduced the legal contingency fee from 25% to 15% and disallowed a disbursement for clerk's time.
The court rejected the proposed management plan for the settlement funds and Natalie Nicholas's application to be appointed guardian of property, citing concerns about the plan's realism and internal inconsistencies in affidavits.
All settlement funds were ordered to be placed into a structured settlement and paid into court until an authorized guardian of property is appointed, with a new management plan required.
