Judge withdraws OK on wrongful death deal

Jones tosses $200K settlement that excluded family of diabetic woman who died in a local jail

A Miller County circuit judge withdrew his previous approval on Monday of a $200,000 settlement in a federal wrongful death lawsuit concerning a severely diabetic woman who died in Texarkana’s Bi-State Justice Building jail.

In December, Circuit Judge Carlton Jones approved the settlement negotiated by Little Rock lawyer Matt Campbell in the suit. The lawsuit stems from the July 1, 2016, death of Morgan Angerbauer from ketoacidosis, a condition resulting from dangerously high blood sugar. Jones’ approval came despite objections from Texarkana lawyer David Carter on behalf of Angerbauer’s mother, Jennifer Houser.

Houser hired Campbell after he contacted her via Facebook the day after her daughter’s death. With Campbell’s assistance, Houser was appointed administra-

tor of her daughter’s estate and agreed to let Campbell file suit against LaSalle Corrections, the company that manages the Bi-State jail, in federal court.

Campbell fileld suit on behalf of the estate only and did not name Houser, Angerbauer’s father or Angerbauer’s siblings as individual plaintiffs in the suit. In May 2017, Campbell filed a motion asking that Houser be removed as administrator and replaced with Little Rock lawyer Victoria Leigh, stating that Houser no longer wanted to be administrator and that she had acted against the estate’s best interests, according to records.

Houser learned she had been replaced as administrator from a news reporter. She said she agreed to the substitution after Campbell reassured her that she would still be consulted about any settlement negotiations and promised to keep her informed as the case proceeded.

Houser and Leigh agreed to settle the case in November 2017. Houser said that when she contacted Campbell after learning of the proposed settlement through a third party, Campbell told her he didn’t need to consult her about it because he never represented her, only her daughter’s estate.

Carter attended the December hearing before Jones with Houser but was not permitted to call Houser as a witness and Jones approved the settlement. Since then, Carter has filed motions asking Jones to reconsider his approval, which include affidavits from Houser and Prosecuting Attorney Stephanie Black, who represents Miller and Lafayette counties.

Carter’s motions accuse Campbell of “hijacking” the case and of “firing” his own client. Campbell filed a response in which he accuses Black of wrongdoing, casts Houser in an unfavorable light, and in which he maintains he has no duty to Houser, only to Angerbauer’s estate.

“Respondent (Campbell and Leigh) attempts to split hairs by dividing Houser into two people; namely her ‘individual’ capacity and ‘official’ capacity,” Carter wrote in response to Campbell’s filing. “Houser, as any lay person employing an attorney, had no reason to distinguish her ‘individual’ and ‘administrator’ capacities. For purposes of assessing Campbell’s ethical duties towards Houser (and Leigh’s fiduciary duty to all heirs), there is no distinction.”

Black handled the prosecution of Brittany Johnson, a former licensed vocational nurse who refused to treat Angerbauer in the jail before her death. Black wrote an affidavit in which she described telling Campbell that his conduct was inappropriate and presented a conflict of interest and in which she states Campbell asked her to withhold information from Houser.

“Respondent offers no testimony or other competent evidence rebutting Black’s testimony. Instead, respondent files an unsworn brief in which she accuses Black of ‘misleading’, ‘inappropriate’, ‘unethical or even tortious’ conduct. Respondent provides no factual or legal bases for these assertions and fails to offer any explanation to this court as to how Black calling Campbell out on his egregious behavior is in any way inappropriate or unethical,” Carter’s response states.

At Monday’s hearing, Leigh testified under questioning from Carter that she has practiced law for seven years, has never handled a wrongful death case, has never spoken with any member of Angerbauer’s family and that she doesn’t believe that as administrator of Angerbauer’s estate she has any duty to Angerbauer’s heirs.

Carter asked Leigh when she became aware that Campbell had failed to employ medical experts to testify as to the cause of Angerbauer’s death before the deadline for doing so passed in the federal suit. Carter said that Campbell’s failure to secure an expert would have proved fatal in the federal civil suit as to the wrongful death claim and cited case law in support.

Campbell objected when Carter asked Leigh if she believes, as administrator of Angerbauer’s estate, she should have reported Campbell’s failure to acquire a “causation expert” to Campbell’s legal malpractice insurance carrier. Campbell also objected when Carter called him as a witness.

Jones agreed to allow Carter to question Campbell on a limited basis only, but placed the court in recess when Carter asked Campbell about his communications with Houser. Campbell objected that if he had known he might have to answer questions about his handling of the federal case, he should have been given the opportunity to hire a lawyer to represent him.

When Jones returned to the bench, he said he has reviewed the recent filings in the case and decided that “the current settlement as it was proposed, is not in the best interest of the estate,” and set aside the order approving it. Jones also said that neither Campbell’s nor Leigh’s conduct was a factor in his finding.

Campbell and Carter resolved other issues through agreement. Carter told the court that he will assume representation of Angerbauer’s estate and Houser in the federal civil suit against LaSalle, which is currently pending before U.S. District Judge Robert Schroeder III in the Texarkana Division of the Eastern District of Texas.

Leigh will continue to serve as estate administrator and must now work with Carter. Carter agreed to withdraw a motion asking that Leigh be required to refund a fee of more than $6,000 she has received from the proceeds of the now unapproved $200,000 settlement.

Campbell gets to leave in place an attorney’s lien for 40 percent of any settlement up to $200,000. That means that if the case is resolved with a larger judgment, Campbell cannot collect more than $80,000.

Carter said he is in the process of determining how to proceed in the federal case.

Houser said she is happy with the results of Monday’s hearing but lamented that Campbell remains entitled to a large sum.

“I just want justice for Morgan,” Houser said. “That’s all I’ve ever wanted.”