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Compromise of Minor's Claim
What is the Compromise of a Minor's Claim?
Compromising a minor's claim involves signing a settlement agreement on a minor's behalf. A contract cannot be entered into by a person under the age of 18 in California. A minor's rights and interests are protected through this process.
According to California law, personal injury settlement agreements are contracts and must comply with contract requirements. The interests of the child are protected by a guardian ad litem, and the proceeds of the settlement are protected by a trust.
Your family can seek financial compensation if your child was injured due to another's negligence in terms of medical bills, lost income, loss of consortium, rehabilitation costs and physical therapy, and pain and suffering.
Compromise Of A Minor’s Claim
A compromise of a minor claim is a legal phrase referring to a settlement of a personal injury claim in which monetary damages are awarded to the minor.
A California car accident may result in medical bills disputed by the plaintiff; an injury occurring at a California public school may result in compensatory damages disputed by the defendant; or a slip and fall may cause rehabilitation costs and loss of earning capacity damages disputed by the plaintiff.
Filing A Compromise Of A Claim On A Minor
Minors are generally not allowed to enter into contracts on their own. Depending on the legal procedure followed by the parties, certain types of settlement agreements can be approved by a California court. Parental petitions may be filed on behalf of a minor by the parents.
In case the parents are not living separately, either parent may file a compromise of a claim; if the parents are living separately, either parent can file a compromise of a claim; the parent with care, custody, or control of the minor may file a compromise of a claim; or a guardian ad litem may file a compromise of a claim.
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The minor's interests may be represented by a guardian ad litem in some cases. Guardians ad litem are individuals appointed by a court to represent the interests of those who are unable to do so themselves, such as children.
The Process Of Compromising A Minor’s Claim
In California, settlements involving children under the age of 18 must be approved by a court. A parent or guardian ad litem may apply to the court for approval through an MC-350 form or MC-350EX. The filing fee may apply. A claim can be filed under two categories.
Types of Minor’s Claim
Parents, guardians, or guardians ad litem can file a settlement agreement if there is no pending litigation, meaning no lawsuit has been filed.
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The guardian ad litem of the minor must file the settlement agreement petition if a lawsuit is pending.
Filing a Claim
A petition should be filed in the county in which the child resides if there has not been a lawsuit filed yet. If the child does not live in California, the petition should be filed in the court where a lawsuit would otherwise be appropriate to be heard.
A petition for a personal injury lawsuit will be filed at the court where the claim has been filed.
Information For Compromise of Minor’s Claim
A petition must be verified and fully disclose all relevant information in order to ensure that the agreement or compromise is reasonable. There are various elements that should be included. Details about the minor child, including dates of birth, age, name, and gender. Details about the petitioner's relationship to the minor. Description of the claim, including whether one has been filed, is pending, or results from a judgment. Describe the incident, including the date, time, people involved, place, facts, and circumstances. Include the minor's injuries and any treatment they received. Explain the extent of the injuries and how they were treated. Reports from doctors with a diagnosis of the injuries and a description of the child's current health. An acknowledgment from the petitioner that the settlement is binding. Information about the settlement amount and all terms, including the use of settlement proceeds. Information about the reimbursement of medical expenses from the settlement award. Legal fees and costs in connection with the settlement award. How settlement proceeds will be handled as well as the amount of the settlement agreement. Fairness, reasonableness, and the minor's best interests are stated in the settlement. Under penalty of perjury, the attorneys, parties, and petitioner's signatures.
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Completing this form and understanding all of the complex topics within can be challenging if you have to do it on your own. You can count on me to make sure your petition is filed in the correct court with the correct information.
Hearing Process
At the compromise hearing, both the minor and guardian ad litem must appear (except in certain limited circumstances, such as when there is good cause). If the court approves the petition, the hearing will take place. Among the factors considered by California judges when deciding if court approval of the settlement will be granted are: the amount of the settlement; the permanence and severity of the injuries the minor suffered; the amount of attorneys fees and court costs that are expected to be deducted from the settlement; and where the funds will be spent once the settlement has been approved.
Settlement
In a minor's case, California law specifies how settlement proceeds must be handled.
Blocked Account
It is common for a minor's settlement proceeds to be held in a blocked account. A court order is needed to withdraw the funds from a bank account before the child turns 18. The child receives the entire amount in the account when he or she turns 18.
The process of blocking accounts is simple and straightforward. Nevertheless, if regular disbursements need to be made from the settlement to pay for certain costs, the court must issue an order each time, which can be very time-consuming.
Special Needs Trust
A special needs trust could be imposed if the child suffered a disability as a result of the accident, or even before the accident occurred. An adult child with special needs who will be unable to work can still receive public benefits through a special needs trust.
Caretaker Compensation
For amounts less than $20,000, the person caring for the child, often called a custodian, can handle the proceeds. For these types of settlements, judges usually prefer blocked accounts.
Minor’s Settlement Trust
Settlement trusts for minors give them, their families, and the courts more flexibility in dealing with settlement assets, as well as no ongoing court supervision. A trust of this kind may be written so that a minor can revoke the trust upon turning 18, but if the minor does not choose to or fails to do so in 30 days, the money can remain in the trust for an extended period of time (e.g. 25, 30).