By Terri Langford, April 22, 2003

A Dallas judge on Monday rejected a $5.6 million settlement plan to resolve most claims following last summer's bus crash near Terrell because it involved too many conflicts of interest.

While state District Judge Mary Murphy congratulated the group, which includes 31 minors and their parents, for the plan to resolve the case outside of trial, she said in her decision issued Monday afternoon that she has to make sure all the minors' interests in this case are protected.

"The court believes it would be an abuse of discretion to approve the agreement on behalf of the minors," Judge Murphy wrote.

The case stems from the June 24 crash in which four youths from Metro Church of Garland were killed when the bus they were riding to summer church camp veered off of Interstate 20 and careened into a highway pillar. The driver of the bus also died.

A plan to pool any damages collected from insurance carriers and distribute them among the plaintiffs was submitted last month to Judge Murphy, along with the proposed settlement of $5.6 million negotiated so far.

Two chief conflicts in the settlement concerned the judge: the fact that many of the plaintiffs are represented by the same attorney and that parents of the children killed or injured in the June 24 crash are represented by the same attorney.

"While the court may determine ultimately that the agreement is in the best interests of the minors, a conflict of interest exists between parents who are seeking damages from a limited fund both individually and separate on behalf of their minor children," Judge Murphy wrote.

The settlement could still move forward if a third party – such as guardians ad litem – reports to the judge that the settlement is in the best interest of the children involved. Judge Murphy could decide to appoint one or more guardians for minors to review the settlement.

Last week, about 40 attorneys involved in the settlement appeared before the judge. Most were there to support the proposed settlement, which includes an arbitrator who will decide what amount the parties get.

Two insurers – one for Metro Church of Garland and one for Green's Transportation – have already agreed to give the 31 minors and their parents $5.6 million. Metro Church had not been named as a defendant, but the church's insurance carrier agreed to contribute to the fund to avoid possible inclusion as a party in the future.

Absent from the plaintiffs' group are two people. One is Nick Stout, whose head and leg injuries from the crash have totaled more than $1 million. While the health insurance policy covering Nick has paid for these expenses, there are many more surgeries in Nick's future, his lawyer Mark Werbner said. At this time, Nick is still unable to walk.

The other is the father for Amanda Maxwell, one of the four children who died in the crash.

Mr. Werbner opposed the settlement plan because too many attorneys represent more than one of the bus passengers. He also said in last week's hearing that very few of those who survived the crash suffered injuries on the level of his client. Only two other passengers besides his client suffered injuries involving more than $100,000.

"I'm very pleased with [the judge's decision] and I hope that we can get a fair settlement for everybody who was injured," said Mr. Werbner.

Jeff Cook, the attorney that helped craft the arbitration plan, said the judge's opinion still leaves room for the original settlement proposal.

"Far from over" is how Mr. Cook described the case. "She has basically given us a road map ... and we can come back."