Hunter et al v. Shanghai Huangzhou Electrical Appliance Manufacturing Co., Ltd. et al

Filing 174

REDACTED ORDER: re 173 , granting 171 Motion to Approve Infancy Settlement. Signed by Judge Brenda K. Sannes on 7/23/2021. (nmk)

Case 5:17-cv-00052-BKS-TWD Document 174 Filed 07/23/21 Page 1 of 4

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF NEW YORK
MEGHAN HUNTER, Individually and as Parent and
Natural Guardian of M.H., and M.H.,
Plaintiffs,
vs.
SHANGHAI HUANGZHOU ELECTRICAL
APPLIANCE MANUFACTURING CO., LTD.,
SHANGHAI HUANGZHOU INDUSTRY CO., LTD.,
QUALITY CRAFT HOME DÉCOR, INC., QUALITY
CRAFT MERGERCO, INC., QUALITY CRAFT LTD.,
QCIL INTERNATIONAL, INC., COLLINS CO. LTD.,
COLLINS INTERNATIONAL CO. LTD., HOME
DEPOT, U.S.A., INC., THE HOME DEPOT, INC., HD
DEVELOPMENT OF MARYLAND, INC., and OSRAM
SYLVANIA, INC.,
Defendants.

ORDER
Civil Case No.: 5:17-cv-0052
(BKS-TWD)

Upon review of the Petition and Declaration of Meghan Hunter dated June 8, 2021, (Dkt.
Nos. 171, 171-1, 171-3); the Declaration of Timothy P. Murphy, Esq., dated June 11, 2021, (Dkt.
No. 171-2); the Declaration of Philip Saunders dated June 3, 2021, (Dkt. No. 171-4); the
Declaration of Annette C. Zawadzki dated July 15, 2021, (Dkt. No. 172); the Declaration of
Timothy P. Murphy, Esq., dated July 15, 2021, (Dkt. No. 172-1); and the Supplemental Draft
Settlement Agreement (Dkt. No. 172-2) in support of Plaintiffs’ Motion for Approval of an Infancy
Settlement (the “Motion”); and the Court being aware that Plaintiff Meghan Hunter and
Defendants Quality Craft Home Décor, Inc., Quality Craft Mergerco, Inc., Quality Craft, Ltd.,
QCIL International, Inc., Home Depot, U.S.A., Inc., The Home Depot, Inc., and HD Development
of Maryland, Inc. (collectively, the “Defendants”) have agreed to a confidential global settlement
of this lawsuit for a total of

with

being offered to settle M.H.’s claim,

Case 5:17-cv-00052-BKS-TWD Document 174 Filed 07/23/21 Page 2 of 4

subject to this Court’s approval, and

being offered to settle Meghan Hunter’s claim,

subject to the approval of the United States Bankruptcy Court for the Northern District of New
York in Case No. 20-61063-6-dd (the “Bankruptcy Court”); and the Court having held a telephonic
hearing regarding the Motion on July 1, 2021; and it appearing that approval of the settlement of
M.H.’s claim would be in the best interests of said infant; and due deliberation having been had,
NOW, upon motion of Hancock Estabrook, LLP, Timothy P. Murphy, Esq., counsel for
the Plaintiffs, it is
ORDERED that Meghan Hunter be, and hereby is, authorized and empowered to settle
and compromise the claim of the infant, M.H., assuming that the Bankruptcy Court approves the
settlement of Meghan Hunter’s claim, for

, part of which shall be structured as set

forth in this Order; and it is further
ORDERED that this Court will withdraw its approval of this settlement and shall retain
jurisdiction over this case in the event that the Bankruptcy Court does not approve the settlement
of Meghan Hunter’s claim; and it is further
ORDERED that attorneys’ fees in the amount of

to Hancock Estabrook,

LLP are hereby approved and to be paid out of M.H.’s settlement proceeds; and it is further
ORDERED that expenses in the amount of $417,567.47 to Hancock Estabrook, LLP are
hereby approved and to be paid out of M.H.’s settlement proceeds; and it is further
ORDERED that $5,838.45, or the updated Medicaid lien amount as defined in the
Declaration of Timothy P. Murphy, Esq. dated June 11, 2021, (Dkt. No. 171-2, at 10), is to be
paid out of M.H.’s settlement proceeds; and it is further
ORDERED that Defendants or their insurers shall use

of M.H.’s settlement

proceeds to purchase an annuity contract from New York Life Insurance Company, which is

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licensed to do business in the State of New York and is rated A++XV by A.M. Best and AA+ by
Standard and Poor’s, that will pay future periodic payments in the amount of

per month

for M.H.’s life, beginning on July 1, 2021, guaranteed for forty years; and it is further
ORDERED that Defendants or their insurer will assign their obligation to make aforesaid
future periodic payments to New York life Insurance & Annuity Corp., Inc. through a qualified
assignment under Section 130(c) of the Internal Revenue Code; and it is further
ORDERED that New York Life Insurance & Annuity Corp., will fund their obligation to
make future periodic payments by purchasing an annuity from New York Life Insurance
Company; and it is further
ORDERED that New York Life Insurance Company will issue an Evidence of Guarantee
that will guarantee the performance of New York Life Insurance & Annuity Corp., with respect to
the obligation assumed; and it is further
ORDERED that the payee of the future periodic payments will be the “MGH
Supplemental Needs Trust” and the future periodic payments shall be deposited into the “MGH
Supplemental Needs Trust” to be held by First National Trust Company, the Corporate Trustee,
and administered for the benefit of M.H. by National Distribution Consultants, LLC, the
Distribution Director; and it is further
ORDERED that the future periodic payments cannot be accelerated, deferred, increased,
decreased, anticipated, attached or assigned in any manner, and any transaction in violation of this
restriction shall be void and invalid; and it is further
ORDERED that that Meghan Hunter and the Defendants shall cooperate fully and
execute all supplementary documents and take all additional actions which may be necessary or
appropriate to give full force and effect to the terms and intent of the settlement, including but

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not limited to, the necessary structured settlement documents and a Stipulation of Dismissal of
this entire action; and it is further
ORDERED that Meghan Hunter is authorized, permitted and directed to execute and
deliver such releases, receipts and such other and usual papers as are required to evidence such
satisfaction and release of the infant Plaintiff M.H.’s claims in this action; and it is further
ORDERED that Defendants or their insurer shall issue the following payments out of
M.H.’s settlement proceeds:
a. A payment in the amount of

to Hancock Estabrook, LLP for

attorneys’ fees;
b. A payment in the amount of $417,567.47 to Hancock Estabrook, LLP for
expenses;
c. A payment in the amount of

to Hancock Estabrook, LLP out of

which Hancock Estabrook, LLP is to pay the Medicaid lien in the amount of
$5,838.45, or any updated Medicaid lien amount, and the remainder of which
shall be deposited into the MGH Supplemental Needs Trust and held by First
National Trust Company and administered for the benefit of M.H. by National
Distribution Consultants, LLC.

Dated: July 23, 2021
Syracuse, New York

_________________________________
HON. BRENDA K. SANNES
UNITED STATES DISTRICT COURT JUDGE

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