UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF OHIO
IN RE:
[LITIGATION] : CASE: ______
:
:
: MDL No.: ______
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This Document Applies to All Actions :
------: Judge ______
UNOPPOSEDMOTION TO ESTABLISH QUALIFIED SETTLEMENT FUND AND APPOINT ADMINISTRATOR
[LAW FIRM] (“[FIRM]”), as counsel for certain Plaintiffs in this MDL _____, move and request the Court to enter an Order to: (1)establish the [NAME] Qualified Settlement Fund (“QSF”) as a qualified settlement fund pursuant to Internal Revenue Code § 468B and Treasury Regulations § 1.468B-1 et seq.for the purpose of facilitating the settlement of certain tort claims against [DEFENDANT]and other defendants relating to [INJURY], and (2) appoint an administrator for the QSF. [DEFENDANT]does not object.
A memorandum in support of this motion is set forth below.
Respectfully submitted,
s/[Name of Password Registrant]
Name of Password Registrant [attorney bar number]
Firm Name
Address
City, State, Zip Code
Phone: (xxx) xxx-xxxx
Fax (xxx) xxx-xxxx
Email:
MEMORANDUM
[FIRM] sets forth the following Memorandum in support of its motion to establish the [NAME] Qualified Settlement Fund (“QSF”):
- [FIRM] and [DEFENDANT], its affiliates and insurers (collectively, “[Defendant]”) previously entered into a Confidential Master Settlement Agreement dated [DATE] (“MSA”) to resolve the actions, disputes and claims of certain plaintiffs and claimants represented by [FIRM] against [Defendant] relating to [INJURY] (“Claims”).
- The MSA established a Settlement Program to resolve the Claims. Pursuant to the terms of the Settlement Program andin exchange for a full and final release of claims, indemnity and assignment from the Claimants, [Defendant] agreed to deposit a confidential settlement amount into a settlement fund, to be established as a qualified settlement fund under Internal Revenue Code § 468B and Treasury Regulations § 1.468B-1 et seq., in full and final satisfaction of all Claims. [FIRM] moves this Court to establish the QSF as the settlement fund under the MSA.
- The QSF shall be a qualified settlement fund under Internal Revenue Code § 468B and Treasury Regulations1.468B-1 et seq. because: (1) the QSF is being established subject to approval of this Court and is subject to the continuing jurisdiction of this Court; (2) the QSF is being established to resolve or satisfy claims of alleged tort or violation of law relating to [INJURY]; and (3) the QSF will be an account whose assets will be segregated from the general assets of [Defendant] and related persons.
- Under the MSA, the QSF shall be held and administered by an administrator to be selected by [FIRM], subject to approval of counsel for [Defendant]. [FIRM] moves this Court to appoint The Garretson Resolution Group, Inc. (“GRG”) as the administrator (“Administrator”) of the QSF to administer the QSF in accordance with the MSAand the terms of a Qualified Settlement Fund Agreement to be executed among GRG and[FIRM]. The Administrator shall also serve as the administrator within the meaning of Treasury Regulations § 1.468B-2(k). [FIRM] requests that GRG serve as the Administrator without bond. Counsel for [Defendant] has approved the selection of GRG as the Administrator of the QSF.
- GRG submits to the personal jurisdiction of this Court. The Administrator shall, upon request, prepare and deliver to the Court such reports involving the administration of the QSF as the Court may request from time to time.
- At this time, the exact allocation among and distributions to the Claimants, or any other persons or entities asserting a claim of subrogation or reimbursement,have not been finalized. However, as those allocation and distribution decisions take place, it will be in the best interest of [Defendant], [FIRM], and the Claimants to consolidate all settlements for management into a single qualified settlement fund. This will afford the parties time to determine appropriate distribution amounts among Claimants, as well as identify, resolve, and satisfy liens, reimbursement claims, and/or reimbursement rights. The Court should, therefore, approve the establishment of the QSF as being in the best interests of the parties and Participating Claimants.
- It is the intention of the parties that this QSF shall be used for the resolution of tort claims against multiple settling defendants for [INJURY]. Following the execution of an MSA, a court order approving the creation of a sub-account, and the execution of a Sub-Account Addendum to the Qualified Settlement Fund Agreement, a new sub-account shall be created within the QSF for each settlement with a settling defendant (“Sub-Account”). The funds in each Sub-Account shall be segregated in the books and records of the Administrator, and the funds in each Sub-Account shall be dedicated solely to the fulfillment of the specific MSA for which it is established. It is the intention of the parties that the QSF, including all Sub-Accounts created therein, shall together constitute a single qualified settlement fund within the meaning of Internal Revenue Code § 468B and Treasury Regulations § 1.468B-1 et seq.
- The funds to be held in the QSF are the sole property of the QSF. Until such time as funds are distributed from the QSF, the Claimants shall not possess any rights to demand or receive any portion of the escrowed funds and shall not possess any right to mortgage, pledge, or encumber the same in any manner. To the extent possible, this Motion shall be construed so as to prevent the Claimants from being in constructive receipt, as determined under federal income tax principles, of any amounts held by the QSF.
- Upon final distribution of all settlement funds received into the QSF and allocated to Claimants, the Administrator shall take appropriate steps to wind down the QSF and thereafter be discharged from any further responsibility with respect to the QSF. The Administrator may, but shall not be obligated to, seek a final order of discharge from this Court.
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on ______, 2016, a copy of the foregoing UNOPPOSED MOTION TO ESTABLISH QUALIFIED SETTLEMENT FUND AND APPOINT ADMINISTRATORwas electronically filed with the Clerk of the Court using the CM/ECF system, which will send notification of such filing to the CM/ECF participants registered to receive service in this MDL.
s/ [Name of Password Registrant]
Name of Password Registrant [attorney bar number, if applicable]
[email address]
Attorney for Plaintiffs
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