Ivory N. v. Kent

Background

I.N. and J.B., both minors suing through their mothers and guardians ad litem, received Medi-Cal benefits and required total assistance with daily activities. The plaintiffs alleged that Jennifer Kent and the California Department of Health Care Services authorized in-home nursing services but provided fewer hours than authorized. They also alleged that defendants placed too much of the burden on them to navigate a complicated system for obtaining needed care.

The amended complaint sought injunctive relief under the Medicaid Act, the Americans with Disabilities Act, and the Rehabilitation Act. The plaintiffs did not seek damages. The court had previously denied defendants’ motion to dismiss for lack of subject-matter jurisdiction and had certified a class and preliminarily approved the proposed settlement.

Notice and Settlement Terms

The defendants mailed notice to all 4,127 identified Medi-Cal beneficiaries in the class. Of those notices, 191 were returned as undeliverable, but class counsel confirmed that they had been sent to the addresses on record. No class member objected. The court found the notice adequate and consistent with the Federal Rules of Civil Procedure and due process.

The settlement requires defendants, among other things, to designate case-management service providers for class members and allow class members to contact defendants directly about concerns involving nursing or other services. Class counsel will monitor implementation. The agreement releases only claims actually asserted in the action. The named plaintiffs waive damages claims, but the parties stipulated that unnamed class members are not barred from seeking monetary damages for the claims asserted in the complaint and amended complaint.

Court’s Analysis

Under Federal Rule of Civil Procedure 23(e), a class settlement requires court approval after adequate notice, a hearing, and a finding that the settlement is fair, reasonable, and adequate. The court found that the class representatives and counsel adequately represented the class and that the settlement resulted from extensive mediation and settlement discussions. It also found that continued litigation would create risks, costs, and delay, while the agreed remedies addressed many of the issues raised in the complaint.

The court therefore granted final approval of the proposed class settlement and approved the parties’ stipulated request concerning the release of claims.

Attorney’s Fees and Expenses

Class counsel requested reimbursement of $14,046 in litigation costs and expenses, including expert-related work. The court found these expenses reasonable and necessary, and granted the request.

The court also found that the plaintiffs were the prevailing party because the settlement provided enforceable relief that materially addressed the alleged problems with in-home nursing services. Counsel reported 1,383.8 hours of work, reduced to 1,054 hours to account for inefficient, duplicative, and unnecessary work. The reported hourly rates ranged from $550 to $950, producing a claimed lodestar of $735,157.50. Counsel requested $420,954 in fees, which defendants did not oppose. The court found that amount reasonable and awarded it without making findings about the reasonableness of the lodestar, the hours, or the hourly rates.

Disposition

The court approved the settlement, awarded $420,954 in attorney’s fees, and awarded $14,046 in litigation expenses. Half of each award was to be paid immediately, with the remaining half paid after all relief for the class had been implemented. Judgment was to be entered separately.