MODESTO -- A husband and wife under fire for their management of a Modesto nonprofit agency have settled a lawsuit brought by the family of a man killed when he was hit by the couple's car three years ago.
Joe and Denise Gibbs faced a wrongful death civil lawsuit; their trial was scheduled to start earlier this month.
Denise Gibbs is the executive director of the Stanislaus Community Assistance Project. Her husband is its director of development.
The lawsuit was filed by the family of Mario Alberto Martinez, 25, of Modesto. Joe Gibbs was convicted last year of felony hit-and-run and misdemeanor vehicular manslaughter in Martinez's death on a Modesto street in 2008.
Attorney Stephen Imburg, who represents Martinez's family, said the plaintiffs and defendants have agreed not to publicly discuss the details of the settlement. He declined to disclose how much money the Gibbses will pay Martinez's family.
"I think everybody is just glad we got it resolved," Imburg said. "Unfortunately, it was a tragic case that brought both parties to court."
Stanislaus County Superior Court Judge Timothy Salter approved the settlement during a brief court hearing Wednesday morning, but the amount of money was not discussed.
Matthew Hawkins, whose law firm represented the Gibbses, was in the courtroom during the hearing, but the Gibbses were not. Hawkins declined to comment about the conclusion of the case.
The plaintiffs listed in the civil lawsuit are Martinez's two small children, Isabella Martinez and Mario Tamez, and their mother, Suzanna Tamez. They appeared in court Wednesday, but they declined to comment.
The judge asked the plaintiffs to return to court May 18 and show receipts for how the money from the settlement is being paid, "so I can confirm the money is being spent for the benefit of the children."
Martinez's family sought compensation for wrongful death, loss of his financial support, and payment for his funeral expenses. Denise Gibbs is involved in the case because she co-owned the Lexus that Joe Gibbs was driving when he hit Martinez.
Police said Martinez was found in a pool of blood near his north Modesto house where Joe Gibbs first confronted Martinez and a friend about loud music coming from a truck. Gibbs hit Martinez with enough force to throw him onto the hood of his car, then off the roof, according to testimony in the criminal case.
Gibbs' criminal defense attorney argued that Gibbs was acting in self-defense, startled by a drunk and angry man who quickly approached his Lexus, then began climbing up the hood.
The criminal case concluded June 14, 2010, with a jury conviction for Gibbs. Martinez's family later filed the civil lawsuit.
In September, the Gibbses sought to move the civil trial outside Stanislaus County. The couple's attorney claimed negative publicity about their nonprofit agency, SCAP, would prevent them from receiving a fair trial.
The Bee has printed numerous stories about a federal investigation into the city of Modesto's oversight of how SCAP has spent more than $8 million in taxpayer money that was intended to help people get affordable housing.
Newspaper articles have revealed that SCAP awarded Joe Gibbs $627,331 in compensation last year, that Denise Gibbs' parents moved into a remodeled home SCAP paid for with tax dollars, and that the agency used large amounts of tax money to buy and remodel Modesto properties.
Attorney Loura Erickson, who represented the Gibbses in court, argued that stories in The Bee about SCAP had adversely affected their ability to have an impartial jury decide the case.
SCAP initially was listed as a defendant in the civil case, but the judge later ruled to remove the agency. Imburg argued in court that news about SCAP has no connection to the wrongful death lawsuit.
Salter agreed with Imburg and denied the motion for a change of venue.
Imburg said both sides will avoid the expenses and stress that go along with a lengthy jury trial.
"It's expensive going to trial," Imburg said. "And nobody knows how things are going to go."
Bee staff writer Rosalio Ahumada can be reached at rahumada@modbee.com or (209) 578-2394.
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