Townsend v. County of Santa Cruz

Background

Antonio Neal Townsend brought this case through his conservator and guardian ad litem, Jacqueline Townsend. On November 10, 2021, the court held a private hearing to review the proposed settlement and address concerns raised by Jacqueline Townsend and Townsend’s counsel. The court found compelling reasons to seal the hearing, its recording, and its transcript because they concerned Townsend’s personal medical and financial issues. The court also stated that it had separately granted a motion to seal certain materials submitted for the hearing.

Settlement terms

The County of Santa Cruz and Telecare Corporation agreed to pay a gross settlement of $5,500,000. The proposed allocation was:

- Gross settlement: $5,500,000.00 - Less costs advanced: $221,654.01 - Net settlement: $5,278,345.99 - Less 40% contingency fee: $2,111,338.40 - Less medical liens: $670,797.96 - Net amount remaining for Townsend: $2,496,209.63

The court noted that only one of Townsend’s claims had survived summary judgment: a claim under 42 U.S.C. § 1983. Counsel submitted a declaration describing the work performed and examples of recoveries in similar cases. The court also considered that the proposed recovery would allow Townsend to obtain specialized medical care, and that the defendants had asserted credible defenses that created uncertainty about the result at trial.

Ruling

The court found the settlement and proposed allocation fair and reasonable and approved them. The court deferred disbursement of all settlement funds because the parties still needed to take additional steps to finalize the settlement agreement. No settlement funds could be transferred to Townsend or his representatives pending further order of the court.