Ace American Insurance Company v. Frey, Jr.

Background

Teresa Henriquez, as administratrix of the Estate of Daniela Abreu, moved under Southern District of New York Local Civil Rule 83.2 for approval of a settlement between the estate and Ace American Insurance Company. The motion was unopposed. The opinion states that the settlement’s complete terms were in a release attached to the supporting papers, but it does not describe the underlying dispute or those complete terms.

Court’s findings and ruling

After reviewing the release, motion, and supporting declarations, the court found that the settlement was fair, reasonable, in Daniela Abreu’s and her estate’s best interests, and compliant with Local Civil Rule 83.2(b). The court therefore approved the settlement.

The court authorized Henriquez to sign documents needed to complete the settlement on behalf of Abreu. It also designated Henriquez as guardian of Abreu’s property for receiving settlement funds under New York Civil Practice Law and Rules § 1206. The settlement amount was $225,000, to be distributed according to the release.

The court set attorney’s fees at $75,000, stating that this did not exceed 33.33% of the settlement amount. It approved $10,221.05 in litigation costs and expenses as fair, reasonable, and necessary, and ordered that the fees and costs be paid to Held & Hines, LLP from the settlement amount. The court also ordered the defendants to remain responsible for liens and reimbursement claims identified in the release, including claims by Medicaid, Medicare, or health-care providers.

Judge Mary Kay Vyskocil ordered that the action be discontinued without prejudice to restoring it to the court’s calendar if an application was made by September 14, 2020. The order stated that if no application was made by that date, the dismissal would be with prejudice.