PITTSBURGH - A federal judge has refused to sign off on a settlement for the minor son of a man killed in an all-terrain vehicle crash over deep concerns that the legal fees and costs were potentially an "inappropriate windfall" for attorneys and experts.
Fees and costs made up 56 percent of the total settlement of just over $100,000 agreed to by the estate of the late Ryan Eckelberry with railway company, CSX, leaving a "scant" 34 percent to the deceased man's minor son, Hunter, and $10,000 to cover hospital treatment costs and fees.
Judge Maureen P. Kelly, of the Western District of Pennsylvania, noted in her ruling on Oct. 9 that the amount, approximately $58,000, including a contingency fee of 33 percent and payment to experts amounting to over $20,000; yet, there were no attorney time records submitted and no invoices or reports provided for the latter.
Five experts were apparently retained for what Kelly described as a "straight-forward negligence action."
"It is readily apparent that, as proposed, counsel shall recover all of his expenses and fees," the judge wrote in the order.
Kelly, who in her order stated that a contingency fee does not "absolve counsel to produce documentation," ruled that a new settlement agreement can be filed with additional information to show that it does not represent an "inappropriate windfall."
The judge ordered the production of the experts' invoices and reports, and the time records of counsel, which court documents state are Richard Haft and Joseph P. Rewis of Rewis & Yoder of Pittsburgh.
Kelly said her concern over the settlement was heightened because "myriad times" the court "provided guidance" to plaintiff counsel on professionalism, timeliness, and the "necessity to act with courtesy to court staff and opposing counsel."
A guardian was appointed for Hunter Eckelberry but he had no independent counsel during settlement negotiations, Kelly further noted. Court approval is required for any settlement involving a minor under Pennsylvania law, a provision designed to make sure the interests of the child are protected against money being siphoned away through an agreement.
The underlying case began in the Court of Common Pleas of Allegheny County, with the plaintiffs, the estate of the deceased man, filing a negligence action over the March 2016 accident that killed the 32-year-old. Eckleberry, with a passenger on board, crashed the ATV into a gate on the defendant's land. The case was removed to federal court.
CSX, in court documents, claimed Eckleberry was intoxicated and trespassing at the time of the crash. Nevertheless, following mediation, the company agreed to the settlement.
US District Court for the Western District of Pennsylvania case number 18-365.