Matter of Taylor Elizabeth Prendergast
Matter of Taylor Elizabeth Prendergast
Case Number
25PR00129
Case Type
Hearing Date / Time
Wed, 04/16/2025 - 08:30
Nature of Proceedings
Minor’s Compromise
Tentative Ruling
Probate Notes:
Appearances required.
The following deficiencies with the petition must be rectified by amended petition filed before the hearing:
1) Adequate documentation that the minor has fully recovered, or is expected to fully recover from the injuries. There are no attachments supporting the allegation at paragraph 9 of the petition. Attachments to the amended petition must support a finding that the minor will fully recover. Please note: It is insufficient to attach the initial medical records. The Court needs confirmation of a full recovery, thus current, recent records showing minor suffers no symptoms from the original injury are required, or records clearly indicating a prognosis for the Court to consider.
2) Adequate evidence of sufficient investigation into the solvency of the settling defendant above the policy limits of the settling insurance company must be submitted. There are no facts alleged that defendant cannot meet a judgment past the policy limits, and evidence on file shows the injury may be more severe than the amount of the settlement will compensate for.
3) Clear allegations and correct calculations at paragraphs 11 through 18. The allegations in paragraphs 11 and 12 (settlement amounts) do not coincide with calculations in paragraphs 13-18. It is unclear from the current allegations what the correct settlement amount is, who is getting paid what amount out of the settlement amount, and why. Specifically, it appears the entire settlement amount is $35,725.86 from two different defendants, but the math in paragraphs 13-18 does not coincide with that settlement amount. Further, the summary in paragraph 17 claims only a $16,000 settlement amount, which is confusing.
4) Medical payments are extreme, thus do not appear to have taken into account mandatory reductions based on Ahlborn calculations. Medi-Cal Liens must be apportioned to a percentage consistent with the percentage of recovery. According to SCOTUS, DHCS violates federal law when it places a statutory lien on any amount of a settlement or judgment above an amount specifically designated as reimbursement for medical costs. (Arkansas Dept. of Health and Human Services v. Ahlborn (2006) 547 U.S. 268, 272.) Thus, according to California cases decided after Ahlborn, DHCS cannot seek full reimbursement for Medi-Cal payments made for medical care required to treat injuries caused by a third-party tortfeasor, unless the recipient of the medical care recovers the full value of their tort claim. (See e.g. Lopez v. Daimler Chrysler Corp. (2009) 179 Cal.App.4th 1373, 1378; Lima v. Vouis (2009) 174 Cal.App.4th 242, 260; Bolanos v. Superior Court (2008) 169 Cal.App.4th 744, 748.) Thus in a settlement, DHCS’s recovery is limited to a percentage of the portion of the settlement apportioned for reimbursement of payments made for medical care, equivalent to the percent the settlement is to the value of the full claim amount:
Expressed mathematically, the Ahlborn formula calculates the reimbursement due as the total settlement divided by the full value of the claim, which is then multiplied by the value of benefits provided. (Reimbursement Due = [Total Settlement ÷ Full Value of Claim] × Value of Benefits Provided.)
(Aguilera v. Loma Linda University Medical Center (2015) 235 Cal.App.4th 821, 828.)