John Doe v. Symington, et al

Filing 621

ORDER adopting Report and Recommendations re 607 Special Master's Report and Recommendation. Further ordered overruling 611 Plaintiffs' objection to the Special Master's Report and Recommendation. Ordered granting in part and deny ing in part 612 Motion to Adopt the Special Master's Report and Recommendations with one modification; granting 615 Motion Special Master's Application for Compensation, requesting a total compensation of $21,200.00. Further ordered that defendants shall pay 100% of the Special Master's fee. Signed by Judge A Wallace Tashima on 7/9/2013.(BAR)

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UNITED STATES DISTRICT COURT

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DISTRICT OF ARIZONA

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J.K., a minor by and through R.K., et al.,)
on behalf of themselves and all others)
similarly situated,
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Plaintiffs,
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vs.
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WILL HUMBLE, in his official capacity)
as Interim Director of the Arizona)
Department of Health Services; DR.)
LAURA NELSON, in her official capacity)
as Director, Division of Behavioral Health)
Services, Arizona Department of Health)
Services; THOMAS J. BETLACH, in his)
official capacity as Director, Arizona)
Health Care Cost Containment System, )
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Defendants.
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No. CV 91-261 TUC-AWT
ORDER

The parties disagree as to the proper interpretation of their 2001 Settlement

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Agreement. On November 15, 2012, the Court appointed Ruth V. McGregor to act as

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Special Master in this case pursuant to Federal Rule of Civil Procedure 53 (Dkt. 586).

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The Court directed that the Special Master “issue a report and recommendation to the

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Court of a resolution of the parties’ differences concerning the interpretation of the

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Settlement Agreement and whether and, if so, how to proceed in resolving any disputes

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arising under the Agreement.” Id. ¶ 6. The Special Master heard oral argument and

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received post-hearing memoranda from the parties before issuing a Proposed Report and

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Recommendations (Dkt. 604). The parties filed responses to the Special Master’s

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proposed order (Dkts. 605 & 606), in consideration of which the Special Master entered

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her final Report and Recommendation (Dkt. 607).

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Now before the Court is the Special Master’s Report and Recommendations (Dkt.

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607), Defendants’ Motion to Adopt Special Master’s Report and Recommendations with

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One Modification and Remand Remaining Disputes for Dispute Resolution Pursuant to

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the Settlement Agreement (Dkt. 612), Plaintiffs’ Objections to Special Master’s Report

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and Recommendations (Dkt. 611), and Defendants’ Response to Plaintiffs’ Objections to

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Special Master’s Report (Dkt. 618). Also before the Court is Special Master McGregor’s

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Application for Compensation (Dkt. 615), Defendants’ Response to Special Master’s

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Application for Compensation (Dkt. 617), and Plaintiffs’ Response to Special Master’s

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Application for Compensation (Dkt. 619). After reviewing the pleadings, the Special

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Master’s Report and Recommendations, and the Special Master’s Application for

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Compensation, and following a motion hearing held June 21, 2013, the Court issues the

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following Order.

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I.

Special Master’s Report and Recommendations

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Objections to factual findings and legal conclusions made or recommended by the

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Special Master are subject to de novo review. Fed. R. Civ. P. 53(f)(3)-(4). On matters of

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procedure, the Special Master’s rulings are reviewed for abuse of discretion. Fed. R. Civ.

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P. 53(f)(5). Having reviewed the Report and Recommendations as well as the parties’

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motions, objections, and oral arguments thereto, the Court now adopts in full the Special

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Master’s Report and Recommendations (Dkt. 607) and overrules Plaintiffs’ objections

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(Dkt. 611). Defendants’ motion (Dkt. 612) is denied to the extent that it seeks

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modification of the Special Master’s Report and Recommendations, and the motion is

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otherwise granted.

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With regard to those issues on which the Special Master has determined that

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factual development is necessary – that is, the issues summarized in ¶¶ 6, 7, 8, 10, and 11

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of the Report and Recommendations (Dkt. 607 at 15-16) – a hearing date has already

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been set during which the Court will receive evidence. See Dkt. 620 (setting evidentiary
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hearing for November 18, 2013 at 9:00 AM, in the U.S. District Court for the District of

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Arizona at Phoenix).

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II.

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Special Master’s Application for Compensation
The Special Master requests compensation in the amount of $21,200.00 and

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recommends that the fee be divided between the parties as follows: 25% ($5,300.00)

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assessed to Plaintiffs and 75% ($15,900.00) assessed to Defendants (Dkt. 615).

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Defendants have no objection (Dkt. 617). Plaintiffs do not object to the amount of

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compensation but they ask that the entire $21,200.00 fee be assessed to Defendants (Dkt.

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619). The Court is persuaded by Plaintiffs’ arguments. Plaintiffs are a class of Medicaid-

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eligible minors; they are in no position to compensate the Special Master.

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Accordingly,

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IT IS HEREBY ORDERED that the Special Master’s Report and

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Recommendations (Dkt. 607) are adopted as part of the Order of the Court.
IT IS FURTHER ORDERED overruling Plaintiffs’ objections to the Special
Master’s Report and Recommendations (Dkt. 611).
IT IS FURTHER ORDERED that Defendants’ motion to adopt the Special

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Master’s Report and Recommendations with one modification (Dkt. 612) is GRANTED

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in part and DENIED in part.

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IT IS FURTHER ORDERED that the Special Master’s Application for

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Compensation, requesting a total compensation of $21,200.00, is GRANTED. The Court

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appreciates the Special Master’s capable assistance in this matter.

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IT IS FURTHER ORDERED that Defendants shall pay 100% of the Special
Master’s fee.
DATED this 9th day of July, 2013.

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