Powers v. Memorial Sloan Kettering Cancer Center

Background

Scott Powers sought approval of a settlement involving himself, the estate of Erika Zak, and L.P., a minor child. The parties identified in the order were Powers, individually and in his roles as representative or administrator of the estate and natural guardian of L.P., Constantinos Sofocleous, and Memorial Sloan Kettering Cancer Center. The order describes the agreement as a proposed partial settlement, while authorizing settlement of the entire case, including wrongful-death claims and L.P.’s claims.

Legal standard

The court explained that Local Civil Rule 83.2(a)(1) requires court approval before parties settle claims on behalf of a minor. The court applied New York statutes and rules, focusing on whether the settlement was in L.P.’s best interests and whether the proposed attorney’s fees and costs were reasonable. The court also noted a strong presumption that a settlement is fair and reasonable when it was reached through non-collusive, arm’s-length negotiations, by attorneys experienced in similar cases, after enough information was obtained to evaluate the claims.

Court’s ruling

After reviewing the parties’ submissions, the court found that the proposed settlement was in L.P.’s best interests and that the agreements, services, fees, and costs addressed in the order were reasonable.

The order authorized Scott Powers to enter into a settlement of the entire case for settlement proceeds to be paid by Memorial Sloan Kettering Cancer Center. It authorized Powers, as administrator of Erika Zak’s estate, to settle the estate’s claims and allocate settlement proceeds to the estate. It also authorized Powers, as L.P.’s natural guardian, to settle L.P.’s claims and allocate settlement proceeds for L.P.’s benefit.

The order further authorized Hendler Flores Law, after receipt of the settlement proceeds, to satisfy an ERISA lien held on behalf of Erika Zak and to receive the approved attorney’s fee and litigation expenses. Any remaining proceeds, after payment of the lien, expenses, fee, and the amounts allocated to L.P. and the estate, were to be allocated to Powers personally. The order authorized Powers to execute a general release and other documents needed to complete the settlement after complying with its terms.

The specific settlement amount, allocations, lien amount, attorney’s fee, and disbursements are not legible in the provided opinion text. The Clerk of Court was directed to close the motions at Dkt. Nos. 500 and 502 and terminate the case.