Court Upholds $38.6-Million Ruling Against Car Thief Who Injured Boy

Ruling with “some reluctance,” a state appeals court has upheld a $38.6-million jury verdict that probably will never be paid to the family of an Irvine boy paralyzed when his mother’s car was struck by a stolen Mercedes.

Jurors in February found the car thief, John Eric Phelps, completely liable for the 1994 crash that critically injured Trent McGee, then 7 years old.

But since Phelps is in prison for the crime and without any significant resources, the boy and his family probably won’t receive anything of the massive verdict to help pay huge medical bills, lawyers have said.

The 4th District Court of Appeal in Santa Ana upheld the verdict and, in a separate ruling, said that a judge was correct in dismissing the city of Laguna Beach from the lawsuit.

When the crash occurred, Phelps, then 30, was being chased by an off-duty Laguna Beach police officer who had been on his way to get his motorcycle radio fixed when he saw Phelps going 100 mph.

The court agreed that the city’s pursuit policy meets legislative standards, giving it and the officer immunity from liability in the crash.

Justice Thomas F. Crosby Jr. noted, however, that the court reached its conclusions “with some reluctance” because it understands the McGees are left with little chance of collecting any money from Phelps.

Phelps, of Dana Point, was sentenced to seven years in prison.