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Ortiz v. Target Corp. — court approves minor’s $50,000 settlement and dismisses claims with prejudice

Reported / Citable

Case
Graciela Ortiz, as Next Friend of A.R., a Minor v. Target Corporation
Court
U.S. District Court for the Southern District of Texas
Judge
Not specified
Date Decided
October 23, 2026
Docket No.
4:24-cv-00407
Topics
Minor settlement; Guardian ad litem; Medicaid lien; Dismissal with prejudice

Background

Graciela Ortiz brought claims individually and as next friend of A.R., a minor, against Target Corporation. The parties appeared ready for trial, waived a jury, and informed the court that they had reached a compromise settlement resolving all claims.

Target agreed to pay $50,000 for the minor’s claims. The court received evidence about the injury, alleged liability, and damages, as well as the guardian ad litem’s recommendation.

The Court’s Holding

The court approved the settlement, finding it to be in A.R.’s best interest. It directed $10,301.38 to Ortiz and her counsel for medical expenses, attorney fees, and expenses; $27,686.09 to TMHP-Medicaid to satisfy its lien; and $12,012.53 into the court registry for A.R. until she turns 18.

The court also ordered Target to pay $2,000 to guardian ad litem Mario Martinez, discharged him after the required registry deposit, and entered judgment reflecting that Ortiz and A.R. recover nothing beyond the approved settlement amounts. The court dismissed all claims against Target with prejudice.

Key Takeaways

  • A federal court approved a $50,000 compromise settlement of a minor’s claims after considering the evidence and guardian ad litem’s recommendation.
  • Most of the settlement was allocated to a Medicaid lien, with the remaining minor’s funds placed in the court registry until adulthood.
  • The agreed final judgment resolves all claims and parties and is appealable.

Why It Matters

The judgment illustrates the court-supervised process for resolving a minor’s claims, including judicial review of the settlement, protection of the minor’s net recovery through a registry deposit, and treatment of a Medicaid lien. It also shows that a settlement can support a final, appealable dismissal with prejudice once the agreed allocations are incorporated into the judgment.

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