J.R. v. Lakeport Unified School District

Background

J.R. and O.G., minors represented by guardians ad litem, asked the court to approve settlements of their claims. The case arose from alleged sexual assaults by another student, identified in the opinion as “Bully,” involving O.G. at a Lakeport school, J.R. at a Lakeport school, and O.G. after he transferred to a Kelseyville school.

The case began in state court and was later removed to federal court. The state-law claims had been stayed because of an unresolved question about whether the claims were barred by California’s claim-presentation requirement. The only federal claim that survived earlier motion practice was a Title IX claim against both school districts. The parties later settled all claims.

Settlement terms

J.R. sought approval of a settlement providing $25,000 from Lakeport and zero dollars from Kelseyville. The opinion states that J.R. never attended a Kelseyville school. After attorney’s fees and expenses, J.R.’s net recovery would be $18,209.43.

O.G. sought approval of settlements providing $50,000 from Lakeport and $60,000 from Kelseyville. After fees and expenses, O.G.’s net recovery would be $81,939.62. O.G.’s guardian ad litem also requested that $17,553 of the recovery be released directly to her for O.G.’s educational and developmental needs. At the hearing, the request was revised to seek $17,335.40 for a used 2014 Honda Civic to transport O.G. to school and medical appointments.

Court’s review

Because the plaintiffs were minors settling federal claims, the court independently reviewed whether each settlement served the minor’s best interests. The court applied the standard requiring review of whether each minor’s net recovery was fair and reasonable in light of the case facts, the minor’s particular claim, and recoveries in similar cases. Although the case also included state-law claims, the court applied this standard to all claims because the Court of Appeals for the Ninth Circuit had not decided how to handle this combination of federal and state claims.

The court found the settlements adequate because continued litigation created a significant risk of no recovery. The state-law claims might be barred. As to the Title IX claim, the plaintiffs would have to prove that the school districts had actual knowledge of the alleged harassment and acted with deliberate indifference, which the court said could be difficult on the evidence described.

For J.R., the court considered testimony describing brief or disputed contacts, the absence of reported conduct involving lingering or squeezing, and the lack of evidence supporting a higher settlement. The court found J.R.’s $18,209.43 net recovery sufficiently adequate.

For O.G., the court considered conflicting accounts, evidence concerning his developmental disabilities and communication challenges, possible credibility issues, testimony from his therapist, and evidence that Lakeport employees might dispute whether they had actual notice or acted with deliberate indifference. The court found the settlement with Lakeport adequate. The court also found the Kelseyville settlement adequate after considering disputes about notice and the alleged assault, the lack of corroborating witnesses, and the short period during which O.G. and Bully attended that school together. The court found O.G.’s total net recovery of $81,939.62 sufficiently adequate.

Ruling

The court granted J.R.’s and O.G.’s requests for approval of their settlements. It ordered that J.R.’s $18,209.43 and O.G.’s $81,939.62 be deposited into blocked accounts for their benefit, with withdrawals requiring a court order even after they reach adulthood. The court granted the request to immediately release $17,335.40 from O.G.’s recovery for the specified vehicle and denied the other immediate-release requests.

The court also authorized plaintiffs’ counsel to receive $33,389.62 in attorney’s fees, $1,441.53 in expenses, and an additional $19.80 to be paid to Medi-Cal for O.G.’s outstanding medical expense. The order required the parties to file a stipulated dismissal and imposed conditions on when the settlement funds and fees could be distributed.