The opinion
IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF NORTH CAROLINA
CIVIL CASE NO. 1:21-cv-00236-MR-WCM
AFARRAH CHARDAE SANDERS, )
as the Administrator of the Estate )
of Jackie Israel Sanders, )
)
Plaintiff, )
) MEMORANDUM OF
vs. ) DECISION AND ORDER
)
RYAN BAILEY, in his individual )
capacity; CODY MCINTYRE; in his )
individual capacity; DEREK DEATON, )
in his individual capacity; HUNTER )
HAYNES, in his individual capacity; )
JEFF SMITH, in his individual )
capacity; JOSHUA KUJAWA, in his )
individual capacity; MATTHEW )
OWENS, in his individual capacity; )
WILMER CHAVEZ-PEREZ, in his )
individual capacity; CRAIG KELLER, )
in his individual capacity and in his )
official capacity; ELIZABETH )
SPROUSE, in her individual capacity; )
JOHN COOLEY, in his individual )
capacity; JOSHUA GOODWIN, )
in his individual capacity; CHRIS )
FRANCIS, The Sheriff of Rutherford )
County, in his Official Capacity; and )
TIM WRIGHT, The Sheriff of Polk )
County, in his official capacity, )
________________________________ )
THIS MATTER is before the Court on the Plaintiff’s Motion for Approval
of Settlement and Order Authorizing Distributions to Minor Beneficiaries of
the Estate of Jackie Israel Sanders [Doc. 29] and the Plaintiff’s Petition to
Approve Administrator’s Commission [Doc. 31].
BACKGROUND
This is a wrongful death action brought by the Plaintiff Afarrah Sanders,
as the Administrator of the Estate of Jackie Israel Sanders (“Mr. Sanders”).
On January 24, 2020, Mr. Sanders was stopped by the Defendants in
Rutherford County for a tag violation while the Defendants were conducting
a multi-agency criminal interdiction operation. Mr. Sanders ran from the
officers at the scene of the stop, but he was taken into custody shortly after
the foot chase. Mr. Sanders died while in custody after suffering a cardiac
arrhythmia and cardiac arrest. The Plaintiff asserts claims pursuant to 42
U.S.C. § 1983 arising from the Defendants’ alleged deliberate indifference to
Mr. Sanders’ obvious medical needs and failure to provide emergency
medical treatment and/or transportation to the hospital for treatment, in
violation of his constitutional rights.
After filing suit, the parties engaged in substantial written discovery,
the depositions of all parties and some lay witnesses, and a mediated
settlement conference that was conducted on October 12, 2022. Although
no agreement was reached at that time, the mediator did not declare an
impasse, and the parties continued negotiations until November 8, 2022,
when the parties reached an agreement to settle all claims asserted herein.
The Plaintiff now seeks court approval of that settlement, as all three
beneficiaries of the settlement are J.S., M.S., and C.S., the minor children of
Jackie Israel Sanders.1 See N.C. Gen. Stat. § 28A-13-3(23). [Doc. 29]. The
Plaintiff also seeks approval of a commission to be paid to the Plaintiff from
the settlement funds for her services as the administrator of Mr. Sanders’
estate. [Doc. 31].
The Court held a hearing on these motions on January 20, 2023.
Present at the hearing were: Brian A. Buchanan and Jake Erwin, counsel for
the Plaintiff; Sean Perrin, counsel for the Defendants; the Plaintiff Afarrah
Sanders, the duly appointed Administrator of the Estate of Jackie Israel
Sanders; attorney Stephen Agan, the Guardian ad Litem for minor
beneficiaries J.S. and M.S.; attorney Brian Davis, the Guardian ad Litem for
beneficiary C.S.; Frances Smith, the mother and natural guardian of the
minor beneficiaries J.S. and M.S.; and Chelsea Martin, the mother and
natural guardian of the minor beneficiary C.S. Prior to the hearing, the Court
reviewed all of the pleadings in this case, including the following documents
filed in support of the Plaintiff’s Motion for Approval of Settlement and Petition
1 The full names and dates of birth of these minor children are set forth in a sealed
addendum to this Order.
to Approve Administrator’s Commission: (1) the Settlement and Release of
All Claims [Doc. 29 at 7]; (2) the Plaintiff’s Representation Agreement with
counsel [id. at 13]; (3) the Affidavit of Brian A. Buchanan Regarding Attorney
Fees [id. at 15]; (4) the Affidavit of Jake Erwin Regarding Attorney Fees [id.
at 17; the funeral expenses incurred by the Estate [id. at 19]; documents
related to the Structured Settlement Proposals for M.S. and C.S., including
the terms and conditions of the annuity payments, and the establishment of
a special needs trust for C.S.; and a proposed disbursement sheet.2 At the
hearing, the parties submitted an amended Settlement and Release of All
Claims (“Settlement and Release Agreement”) signed by all parties. [Doc.
32]. After a careful review of these documents, and based on the
representations of the parties at the hearing, the Court makes the following
findings of fact:
FINDINGS OF FACT
1. To assess the reasonableness of the Settlement and Release
Agreement, the Court requested that counsel for the Plaintiff and the
Defendants give a forecast of their trial evidence and provide a candid
evaluation of the strengths and weaknesses of the Plaintiff’s claims and any
2 The structured settlement documents, trust documents, and disbursement sheet were
not filed with the motion but rather were submitted directly to chambers prior to the
hearing. These documents are attached as sealed addenda to this Order.
defenses thereto. The parties complied with the Court’s request and
proffered the following details surrounding the factual and legal
circumstances of this matter.
2. The Plaintiff’s claims arise from the Defendants’ alleged failure
to provide Mr. Sanders with any medical care when he showed classic
symptoms of heart or respiratory distress, including shortness of breath,
dizziness, fainting, inability to walk, confusion, inability to talk, inability to hold
his head upright, and other serious symptoms. Mr. Sanders began exhibiting
these symptoms at the scene of the arrest; by the time he arrived at the
detention facility, he was unconscious. Despite Mr. Sanders’ condition, the
Defendants did not immediately call for emergency medical services.
Although emergency services were eventually called, EMTs were unable to
resuscitate Mr. Sanders, and he was pronounced dead at the scene. An
autopsy determined that Mr. Sanders died from dilated cardiomyopathy, a
type of heart failure.
3. The Plaintiff designated experts who were expected to testify that
Mr. Sanders was having a medical emergency that would have been obvious
to a lay person or a law enforcement officer, and that the officers should have
called for emergency medical assistance earlier than they did. The Plaintiff’s
medical expert would have testified that Mr. Sanders could have been saved
by prompt medical attention.
4. The Defendants designated experts who were expected to testify
that Mr. Sanders’ condition was not obvious to a lay person such as a law
enforcement officer, and that his heart condition was previously unknown
even to Mr. Sanders. These experts would have testified that the actions of
the Defendants were within police standards. The Defendants’ medical
experts were also expected to testify that even if EMS had been called
sooner, Mr. Sanders was suffering from a fatal arrhythmia and would likely
not have survived regardless of treatment.
5. Candidly assessing the case, the Plaintiff’s counsel was
concerned that Mr. Sanders’ cardiac arrest was likely precipitated by his
running from the officers at the initial traffic stop; that Mr. Sanders was only
in the presence and custody of the “arresting officers,” with the exception of
Officer Keller, for approximately 15 minutes total; and that Mr. Sanders was
only in the presence of the “detention officers” for 7 minutes before they
called 911 for EMS. Among other defenses, the Defendants asserted the
defense of qualified immunity, and while Plaintiff’s counsel did not expect all
the Defendants to prevail on the defense of qualified immunity, some
probably would have, and immediate appeals would have prolonged the
litigation substantially. Further, the Defendants’ insurance carrier took the
position that the applicable insurance policy would not have covered
compensatory damages awarded for any intentional acts of the Defendants,
nor would it have covered an award of punitive damages. The Plaintiff’s
counsel was aware that, in order to demonstrate “deliberate indifference” to
Mr. Sanders’ medical needs, the Plaintiff would necessarily have to prove
“intentional” or “deliberate” conduct that would have likely negated any
insurance coverage.
6. The Plaintiff’s counsel explained to the Plaintiff that the certainty
of a negotiated settlement had significant value to the beneficiaries because
continued litigation could result in outright dismissal of some or all the
Plaintiff’s claims, prolonged appellate litigation, trial with results less
favorable than the negotiated agreement, or trial with more favorable results
but possibly no insurance coverage from which to recover the verdict.
7. After weighing all of these factors, the Plaintiff determined that
the settlement was fair and in the best interests of the minor beneficiaries.
8. Counsel Jake Erwin was retained by the Plaintiff pursuant to a
contingent fee agreement, pursuant to which the Plaintiff agreed to pay
counsel 45% of any recovery if the case was resolved after the filing of a
lawsuit.
9. Counsel Jake Erwin associated counsel Brian A. Buchanan of
Grimes Teich Anderson, LLP, as co-counsel and local counsel to proceed
with this action in the Western District of North Carolina.
10. Mr. Erwin and Mr. Buchanan advanced costs and expenses in
furtherance of this case. The amounts of those expenses are reflected in
the Disbursement Sheet, attached as a sealed addendum to this Order.
Neither defense counsel nor the Guardians ad Litem object to these
expenses.
11. Both Mr. Erwin and Mr. Buchanan have submitted affidavits
explaining the time expended by each of them in this case through the date
of settlement. Both attorneys have spent additional time pursuing this case
since the date of the settlement, including consultations with the parties, the
Guardians ad Litem, and structured settlement advisers.
12. The share of the settlement proceeds to be awarded to J.S. are
to be held in the attorney trust account of Grimes Teich Anderson, LLP, and
disbursed to J.S. on or after her 18th birthday.
13. The Plaintiff has submitted a structured settlement proposal for
the share of the settlement proceeds to be awarded to M.S. in which his
share of the settlement proceeds shall be used to fund an annuity which will
pay to M.S. a set amount annually starting on his 18th birthday and each year
after that until his 21st birthday. The structured settlement annuity agreement
and its terms are attached to this Order as a sealed addendum.
14. The Plaintiff has submitted a structured settlement proposal for
the share of the settlement proceeds to be awarded to C.S. in which a portion
of his share of the settlement proceeds shall be used to fund a Minor’s Trust
to provide for C.S.’s needs until he is no longer a minor. Further, the
remainder of C.S.’s share shall be used to fund an annuity which will pay to
C.S. a set amount annually starting on his 18th birthday and each year after
that until his 21st birthday. A copy of the Minor’s Trust and the structured
settlement annuity agreement and their terms are attached to this Order as
a sealed addendum.
15. At the hearing held on January 20, 2023, the Plaintiff
acknowledged that she:
a. Has read the Settlement and Release Agreement filed in
this matter, and that she understands and agrees to the
terms of that agreement.
b. Has had adequate opportunity to confer with her counsel
regarding her decision to settle this matter.
c. Understands that the Settlement and Release Agreement
proposes that certain consideration be paid for the benefit
of the minor children of the decedent, Jackie Israel
Sanders.
d. Believes that, in her capacity as the Administrator of the
Estate of Jackie Israel Sanders, the proposed settlement is
fair and reasonable for the minor children under the
circumstances of this case, particularly as to the nature of
the settlement, the amount of monetary payments to be
made under the settlement, and the proposed
disbursements of the settlement funds.
e. Understands that, if the Court approves the Settlement and
Release Agreement, the consideration due will be paid as
described in the settlement agreement.
f. Understands that if the Court approves the settlement
agreement, the provision of the consideration for the
settlement by the Defendants will terminate the estate’s
claims and any claims of the minor children against the
Defendants.
g. Understands that her decision to accept the settlement
agreement on behalf of the estate and the minor children,
if approved by the Court, will bind the estate and the minor
children and the minor children will be enjoined from
seeking any future claims or redress against the
Defendants based upon the acts and omissions alleged in
this case.
16. At the hearing on January 20, 2023, Frances Smith, as the
mother and natural guardian of J.S. and M.S., stated that she:
a. Has spoken with counsel and understands the strengths
and weaknesses of the case.
b. Believes the gross settlement amount and the net amount
to be paid to each of her minor children is fair and
reasonable.
c. Believes the proposed attorney fee award to be fair and
reasonable.
d. Believes the settlement as a whole is fair and reasonable
and in the best interest of her minor children.
e. Has discussed with counsel and the Guardian ad Litem for
J.S. and M.S. the provisions that have been made for the
management of the settlement funds paid for the benefit of
her minor children, and she understands those provisions.
f. Has reviewed the documents related to the management
of those funds for M.S. and finds those terms to be
satisfactory.
g. Understands that since J.S. will turn eighteen (18) shortly
after this hearing, J.S. will receive all of her share of the
settlement in one lump sum from the attorney trust account
of Grimes Teich Anderson, LLP, on or shortly after her 18th
birthday.
h. Understands that the settlement funds may not be used for
typical parental expenditures or to discharge any legal
obligation that she has as the parent of the minor children.
i. Understands that, if the Court approves the Settlement and
Release Agreement, the provision of the consideration for
the settlement by the Defendants will terminate any claims
of the minor children against the Defendants. She further
acknowledged that she understands that her decision to
accept the Settlement and Release Agreement on behalf
of the minor children (if such agreement is approved by the
Court) will bind the minor children and said children will be
enjoined from seeking any future redress against the
Defendants, pursuant to the Settlement and Release
Agreement, based upon the acts and omissions alleged in
the Complaint.
17. At the hearing on January 20, 2023, Chelsea Martin, as the
mother and natural guardian of C.S., acknowledged that she:
a. Has spoken with counsel and understands the strengths
and weaknesses of the case.
b. Believes the gross settlement amount and the net amount
to be paid to her minor child is fair and reasonable.
c. Believes the proposed attorney fee award to be fair and
reasonable.
d. Believes the settlement as a whole is fair and reasonable
and in the best interest of her minor child.
e. Has discussed with counsel and the Guardian ad Litem for
C.S. the provisions that have been made for the
management of the settlement funds paid for the benefit of
her minor child, and she understands those provisions.
f. Has reviewed the documents related to the management
of those funds for C.S. and finds those terms to be
satisfactory.
g. Understands that the settlement funds may not be used for
typical parental expenditures or to discharge any legal
obligation that she has as the parent of the minor child.
h. Understands that, if the Court approves the Settlement and
Release Agreement, the provision of the consideration for
the settlement by the Defendants will terminate any claims
of the minor child against the Defendants. She further
acknowledged that she understands that her decision to
accept the Settlement and Release Agreement on behalf
of the minor child (if such agreement is approved by the
Court) will bind the minor child and said child will be
enjoined from seeking any future redress against the
Defendants, pursuant to the Settlement and Release
Agreement, based upon the acts and omissions alleged in
the Complaint.
18. At the hearing on January 20, 2023, Attorney Stephen Agan, as
Guardian ad Litem for J.S. and M.S., acknowledged that he:
a. Has read the Settlement Agreement and Release.
b. Has reviewed the pleadings as well as the body worn
camera videos and detention center videos, and has
spoken with counsel and understands the strengths and
weaknesses of the case.
c. Is satisfied that, in his capacity as Guardian ad Litem for
J.S. and M.S., the proposed settlement is fair and
reasonable for the minor children under the circumstances
of this case, particularly as to the nature of the settlement,
the amount of the monetary payments under the
settlement, and the proposed disbursements of the
settlement funds.
19. At the hearing on January 20, 2023, Attorney Brian Davis, as
Guardian ad Litem for C.S., acknowledged that he:
a. Has read the Settlement Agreement and Release.
b. Has reviewed the pleadings as well as the body worn
camera videos and detention center videos and has
spoken with counsel and understands the strengths and
weaknesses of the case.
c. Is satisfied that, in his capacity as Guardian ad Litem for
C.S., the proposed settlement is fair and reasonable for the
minor child under the circumstances of this case,
particularly as to the nature of the settlement, the amount
of the monetary payments under the settlement, and the
proposed disbursements of the settlement funds.
20. The Court finds that the attorney’s fees and costs of litigation as
requested by the Plaintiff’s counsel are fair and reasonable upon considering
the factors outlined by In re Abrams & Abrams, P.A., 605 F.3d 238, 244 (4th
Cir. 2010), including the skill of the work performed and the degree of
success obtained for the minor children. Specifically, the Court finds that this
litigation, which involved issues of medical causation, federal civil rights
liability, and governmental immunity, required a high degree of specialized
skill and knowledge on the part of counsel. While the case was settled
relatively early in the stages of litigation, counsel was required to perform a
considerable amount of work conducting discovery and procuring the
testimony of expert witnesses to support the Plaintiff’s claims. This also
resulted in a large amount of costs being advanced by the Plaintiff’s counsel,
with the potential that such expenses might not be recouped in the event that
the case was dismissed or otherwise decided in the Defendants’ favor.
Additionally, by settling this matter before the summary judgment stage,
counsel did not incur additional costs in briefing such motions and preparing
the matter for trial.
21. The Plaintiff Afarrah Sanders, as the Administrator of the Estate
of Jackie Israel Sanders, has submitted a Petition to Approve an
Administrator’s commission pursuant to NCGS § 28A-23-3(a). [See Doc.
31].
22. Neither counsel for the Defendants nor the Guardians ad Litem
object to the Plaintiff’s Petition.
23. The Plaintiff has expended substantial time in reaching the
settlement as well as the additional time to participate in this hearing. The
Plaintiff has missed work for attorney conferences, depositions, and the
mediated settlement conference. There are no assets of the estate from
which a commission could be awarded to the Plaintiff. The Court finds that a
commission of 2% of the settlement amount is an appropriate commission in
this case.
CONCLUSIONS OF LAW
WHEREFORE, based upon the foregoing Findings of Fact, the Court
concludes as a matter of law that:
1. Minors, because they are legally incompetent to transact
business or give consent for most purposes, need responsible, accountable
adults to handle property or benefits to which they are or become entitled.
N.C. Gen. Stat. § 35A-1201(a)(6). Additionally, where minors are entitled to
receive damages pursuant to the settlement of a wrongful death action, the
settlement must be approved by the Court, even though the minor
beneficiaries are not parties to the wrongful death action. N.C. Gen. Stat. §
28A-13-3(23).
2. The Plaintiff Afarrah Sanders, acting in her capacity as the
Administrator of the Estate of Jackie Sanders, is competent in all respects
and understands the ramifications of the Settlement and Release
Agreement, as well as the effect of the agreement on the minor children, and
she is competent to execute the Settlement and Release Agreement and to
execute her duties accordingly.
3. Frances Smith, as the mother and natural guardian of the minor
beneficiaries J.S. and M.S., is competent in all respects and able to
understand the ramifications of the Settlement and Release Agreement, as
well as the disbursement for J.S. upon her 18th birthday, and the structured
settlement annuity being purchased for M.S.
4. The Plaintiff Afarrah Sanders, acting in her capacity as the
Administrator of the Estate of Jackie Sanders, and Frances Smith, as the
mother and natural guardian of the minor beneficiaries J.S. and M.S., have
bound the minor children herein in the same manner as if such minors had
consented to the settlements as adults.
5. Chelsea Martin, as the mother and natural guardian of the minor
beneficiary C.S., is competent in all respects and able to understand the
ramifications of the Settlement and Release Agreement, the minor’s trust,
and the structured settlement annuity being purchased for C.S.
6. The Plaintiff Afarrah Sanders, acting in her capacity as the
Administrator of the Estate of Jackie Sanders, and Chelsea Martin, as the
mother and natural guardian of the minor beneficiary C.S., have bound the
minor child herein in the same manner as if such minor had consented to the
settlements as an adult.
7. Attorney Stephen Agan, acting in his capacity as the Guardian
ad Litem for J.S. and M.S., is competent in all respects and is able to
understand the ramifications of the Settlement and Release Agreement, as
well as the effect such agreement would have upon the minor children, and
is competent and able to execute his duties accordingly.
8. Attorney Brian Davis, acting in his capacity as the Guardian ad
Litem for C.S., is competent in all respects and is able to understand the
ramifications of the Settlement and Release Agreement, as well as the effect
such agreement would have upon the minor child, and is competent and able
to execute his duties accordingly.
9. Having reviewed the details of the proposed disbursement of
funds for the minor children, including payment dates and amounts, the Court
finds that the extent, nature, and amount of recovery for the minor children
are all fair and reasonable, and the disbursement of such funds as provided
in the Settlement and Release Agreement and the Disbursement Sheet
attached hereto is in the best interests of the minor children.
10. The attorneys’ fees and expenses, Guardian ad Litem fees, and
other costs as set forth in the Disbursement Sheet attached hereto are fair
and reasonable and in the best interests of the minor children.
11. The commission requested by the Plaintiff Afarrah Sanders,
acting in her capacity as the Administrator of the Estate of Jackie Sanders,
is allowed.
12. The Settlement and Release Agreement should be approved.
ORDER
IT IS, THEREFORE, ORDERED that the Plaintiff’s Motion for Approval
of Settlement [Document 29] and the Plaintiff’s Petition to Approve
Administrator’s Commission [Doc. 31] are GRANTED, and the parties’
Settlement and Release Agreement [Doc. 32] is hereby APPROVED.
IT IS FURTHER ORDERED that the parties shall file a stipulation of
dismissal with respect to all the Plaintiffs claims against the Defendants
within thirty (80) days of the entry of this Order.
IT IS SO ORDERED.
Signed: January 27, 2023
Martifi Reidinger Ls,
Chief United States District Judge lt
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