Steven Watley v. Kelly Corn

Oklahoma City, OK - Steven Hatley and Shavon McNack-Watley, parents and next friends of SW, Jr., a minor, sued Kelly Corn on a negligence theory claiming:



1. On or about April 5, 2015 in Oklahoma County, Oklahoma, the minor, S.W., Jr., was involved in a automobile accident wherein S.W., Jr. allegedly sustained injury. As a result of the automobile accident, the minor and the minors parent and next friend, Steven Watley and Shavon McNack-Watley, (hereinafter referred to collectively as “Petitioner/Plaintiff’), has asserted a claim against Kelly Corn (hereinafter referred to as “Co-Petitioner/Defendant”). Said claim is disputed both as to liability and damages.

2. The parents and next friends of the injured minor appears to assert the injured minor’s claim and also to assert the parents’ individual claims for damages and expenses sustained by the parents arising out of the injuries allegedly sustained by S.W., Jr.. Steven Watley and Shavon McNack-Watley are the natural parents of the minor Petitioner/P1aintift S.W., Jr..

3. A compromise agreement has been reached wherein Kelly Corn has offered to pay the total sum of $One Hundred Thousand and No/100 Dollars to the parents individually and as parents and next friends of the minor.

4. Distribution of the total settlement amount of SOne Hundred Thousand and No/100 Dollars should be in accordance with evidence submitted.

5. The attorney fees and expenses of Petitioners/Plaintiffs should be approved in accordance with evidence submitted.

6. The parents and next friends, Steven Watley and Shavon McNack-Watley, in their individual capacity and as parents and next friends of the minor have agreed to pay attorney’s fees where applicable, any and all outstanding medical bills, hospital liens, physicians liens, insurance subrogation claims, taxes, if any, and any and all other claims against the proceeds of this settlement and have agreed to indemnify and defend the Co-Petitioner/Defendant from any further loss or claims by any medical providers, lien claimants or subrogated claimants.

7. The Petitioner/Plaintiffs believes the settlement is fair, equitable and in the best interest of the minor child and represent to the Court that the settlement agreement was entered into free from duress or coercion by any of the other parties hereto or their agents, attorneys or employees, and that they has formed their opinion with regard to this settlement based upon their own independent belief and thought and not upon the representation of the CoPetitioner/Defendant.

8. The Petitioners/Plaintiffs are aware that this settlement, if approved by the Court, will fully compromise and conclude the subject claims and that the injured minor, and the minor’s parents and next friends, will not be allowed to seek any further compensation from the Co-Petitioner/Defendant, Kelly Corn, or her insurance carrier, should the injured minor’s condition change or new injuries or medical problems develop or be discovered after this settlement.

9. The Petitioners/Plaintiffs are also aware that by settling this case the injured minor as well as Steven Watley and Shavon McNack-Watley are giving up the right to file a civil action against the Co-Petitioner/Defendant or her insurance carrier. The Petitioner/Plaintiff is aware that the minor Petitioner/Plaintiff would otherwise have the right to file a civil action for the minor’s damages within two (2) years of the date of the accident, against Kelly Corn, or within one (1) year from the date the injured minor reached the age of majority, whichever is longer. The Petitioners/Plaintiffs are aware that the parents and next friends of the injured minor would otherwise have the right to file a civil action for damages within two (2) years of the date of the accident against Kelly Corn. If such civil action were pursued, the Petitioners/Plaintiffs are aware that a jury could award either greater, lesser or the same compensation than that received by way of this compromise settlement.



OBJECTION TO APPROVAL OF SETTLEMENT

Oklahoma Heart Hospital LLC Welfare Benefit Plan (the “Plan”) objects to any approval of a settlement between the plaintiffs and defendant which does not address the subrogation rights of the Plan. In support of this objection, the Plan would show the court as follows:

1. On September 2, 2015, the Plan moved to intervene in this action.

2. The Plan is a self-funded ERISA Plan which provided coverage to the plaintiffs and paid medical bills on behalf of the plaintiffs in the amount of $126,111.00.

3. Pursuant to the terms of the Plan, the Plan is entitled to reimbursement of all amounts it has paid on behalf of the plaintiffs.

4. A Joint Petition for Approval of Settlement was filed by the plaintiffs and

defendant on or about August 4, 2015. The Joint Petition provides for payment of

$100,000 to the parents individually and as parents and next friends of the minor.

A hearing on a Petition for Approval of Settlement is currently set for the court on

September 10, 2015 at 2:30 p.m.

5. The Plan objects to any settlement or disbursement of funds which does not reimburse the Plan for the medical expenses it has paid on behalf of the Plaintiffs.

6. The Plan is an “employee welfare benefit plan” as defined under 29 U.s.c. § 1002(1) & (3). Oklahoma Heart Hospital is the “sponsor,”“administrator,” and the “fiduciary” of the Plan as defined under 29 U.S.C. § 1002(16) & 21(A). The Plan contains a Third Party Recovery Provision (“TPRP”) that requires injured parties to repay the Plan if they recover from Another Party. (See Exhibit A). Specifically, the Plan shall be subrogated to all rights of Recovery the Covered Person has against Another Party responsible for making any payment as a result of any injury Covered Person sustains to the full extent of benefits provided.

7. Among other things, the TPRP states that: 1) The Covered Person agrees that acceptance of benefits is constructive notice of the TPRP; 2) The Plan has a first lien and right to 100% of any Recovery to the extent of benefits paid; 3) the Covered person agrees to serve as a constructive trustee over such Recovery; 4) the Plan’s first lien fully supersedes any right of first payment out of any Recovery; 5) “make whole” and “common fund” rules are inapplicable; 6) the Plan is entitled to reimbursement regardless of how the recovery is characterized or to whom it is paid; 7) the provisions of the TPRP apply to the parents, trustee, guardian or other representative of a minor Covered Person; and 8) If the Covered Person fails to reimburse the Plan after receiving a Recovery, the Plan can offset the lost amount from future benefits. Ms. Watley is an employee of the Oklahoma Heart Hospital. Both Ms. Watley and 5.W. Jr. are Covered Persons.



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ORDER SEALING PLEADINGS

Pursuant to Rule 10.1(c) of the Rules of Seventh and Twenty-Sixth Judicial Districts, 51 0.5. 24 A. 29 and 12 0.5. § 3226 (c), the Court directs the following documents to be filed

under seal:

child.

1. Court Order Approving Sefflement Agreement With a Minor;

2. Order for Deposit of Settlement Proceeds;

3. Receipt.

The Court finds this Order is necessary in the interest ofjustice and involves a minor

DISMISSAL WITH PREJUDICE

NOW, on this 10th day of September, 2015, Petitioners/Plaintiffs, Steven Watley and Shavon McNack-Watley, individually and as parents and next friends of S.W. Jr., a minor, having previously entered into a settlement agreement regarding individual claims against the Co-Petitioner/Defendant, and on behalf of S.W. Jr., a minor, and afier appearing in open court, sworn testimony given, evidence heard and settlement approved by the Judge of the District Court, hereby dismisses the above-styled and numbered cause of action against the CoPetitioner/Defendant, Kelly Corn, with prejudice to the right of refiling.