Case Style: Paul Sheppard v. Allstate Insurance Company
Case Number: CJ-2012-1631
Judge: Lisa T. Davis
Court: District Court, Oklahoma County, Oklahoma
Defendant's Attorney: R. Vaughn Lawson
Description: Paul Sheppard, individually and as parent and next friend of Christian Sheppard, a minor, sued Allstate Insurance Company alleging:
1. On or about March 16, 2011, on Reno Boulevard near Hudson Place in Midwest City, Oklahoma County, State of Oklahoma, the minor, Christian Sheppard, was involved in an accident wherein said minor allegedly sustained various injuries. As a result of the accident, the injured minor and the minor’s parent and next friend, Paul Sheppard (hereinafter referred to as “Plaintiff”), has asserted a claim against ALLSTATE INSURANCE COMPANY (hereinafter referred to as “Defendant”). The claim is disputed as to liability and damages.
2. The parent and next friend of the injured minor appears to assert the injured minor’s claim and also to assert the parent’s individual claims for damages and expenses sustained by the parent arising out of the minor’s injuries.
3. A compromise agreement has been reached. Defendant insurer has agreed to pay a total of $31,800.00 to Plaintiffs.
Outcome: ORDER APPROVING SETTLEMENT AGREEMENT WITH MINOR
NOW on this 3’ day of May 2012, this matter coming on before me, the undersigned Judge of the District Court, and having reviewed the pleadings herein, heard testimony of witnesses sworn and statement of counsel, and being fully advised in the premises herein, finds as follows:
1. On or about March 16, 2011, near the intersection of Hudson Place and Reno Boulevard in Midwest City, Oklahoma County, State of Oklahoma, the minor Plaintiff was involved in an auto accident. That as a result of the accident, the minor was allegedly injured and a claim has arisen against the Defendant that is disputed both as to liability and damages. The parties have reached a compromise agreement and have requested that the Court approve the settlement.
2. THE COURT FINDS that Paul Sheppard is the proper party to act on behalf of
the minor child and that he is competent.
3. THE COURT FINDS that a compromise agreement has been reached wherein the Defendant has agreed to pay a total sum of $31,800.00 for the claim of Christian Sheppard, representing the claims for all necessary and incidental expenses, past and future, incurred or to be incurred, because of the alleged injuries to the minor, and for loss of love, services and affection of the minor due to said alleged injuries, and attorney fees and costs, and representing full payment for pain and suffering, both past and future, permanent disability, disfigurement and any other claim the minor child may have now, or which may arise in the future, known or unknown, resulting from the said incident.
4. THE COURT FINDS that the Defendant agrees to pay, to resolve the claim of Christian Sheppard, $1,930.52 in upfront cash and the lump sums outlined below as a structured settlement:
- $15,000 payable on 09/02/2017
- $18,780 payable on 09/02/2019
These sums set forth constitute damages on account of personal physical injuries or sickness, within the meaning of §104(a)(2) of the Internal Revenue Code of 1986, as amended.
5. THE COURT FINDS that Plaintiffs understand that all periodic payments specified above and in Section 2.2 of the Settlement Agreement and Release may be funded by the purchase of a “Qualified Funding Asset,” as defined in Section 130(d) of the Internal Revenue Code of 1986, from Allstate Life Insurance Company, and that Allstate Insurance Company, Paul Sheppard, or Allstate Assignment Company will be the sole owner of the “Qualified Funding Asset.” Plaintiffs acknowledge that Allstate Insurance Company may purchase the Qualified Funding Asset for the periodic payments from Allstate Life Insurance Company, which is an affiliate of Defendant Allstate Insurance Company and that because of this affiliation, an indeterminate profit might eventually inure to the benefit of Allstate Insurance Company.
6. THE COURT FINDS that the Plaintiffs acknowledge that Allstate Insurance Company is not required to set aside specific assets to secure the periodic payments, the Periodic Payments cannot be accelerated, deferred, increased or decreased by the Plaintiffs or any Payee; nor shall the Plaintiffs or any Payee have the power to sell, mortgage, encumber, or anticipate the Periodic Payments, or any part thereof, by assignment or otherwise.
7. THE COURT FINDS that Plaintiffs understand that the obligation of the Defendant Allstate Insurance Company to make each Periodic Payment shall be discharged upon the mailing, on or before the due date, a valid check in the amount of such payment to the designated address of each Payee named in Section 2.0 of the Release, or by deposit by electronic funds transfer in the amount of such payment to an account designated by each Payee identified in Section 2.0.
8. THE COURT FINDS that the Plaintiffs have reached an informed decision to waive the right to trial by jury. Plaintiffs are fully aware of the consequences of settlement of this matter and are aware that once the Court approves this settlement and the settlement proceeds have been paid, that both the parents and the minor, even after reaching the age of majority, shall be forever barred from making any additional claims as a result of the subject accident, even if the medical condition of the minor does not continue as presently anticipated or shall unexpectedly change for the worse after this settlement.
9. THE COURT FINDS that the parties have agreed, and the Court so orders, that the parent, individually, shall pay any and all outstanding medical bills, liens, attorney fees, and any other claims made against the settlement proceeds, and shall indemnify the Defendant from any further loss.
10. The Court has heard testimony as to the medical condition and prognosis of the minor child, and as to the other elements of damage and liability in the case, and finds that the settlement agreement is fair, equitable, and in the best interest of the minor; that it was entered into free from fraud, coercion and duress by either of the parties, their agents, insurers or attorneys. Said agreement is hereby approved by the Court.
11. THE COURT FINDS AND HEREBY ORDERS that the proposed settlement as set forth above should be and hereby is approved and upon payment of the settlement proceeds, or purchase of the annuity contract, the Defendant shall be deemed to be released from any and all further liability to the other parties as a result of the incident described herein.