What is the court approval process for a personal injury settlement involving a minor child in California?

In California, a court must approve any personal injury settlement for a minor to ensure the agreement is fair and the money is protected for the child's benefit. This process is known as a "Minor's Compromise." Here is the general court approval process: Step 1: Appoint a Guardian ad Litem A parent or other responsible adult must be appointed as the "Guardian ad Litem" to act on the minor's behalf. This person files the necessary paperwork and makes decisions in the child's best interest. This is done by filing a petition with the court. Step 2: File a Petition to Approve the Compromise The Guardian ad Litem files a "Petition to Approve Compromise of Claim of Minor" (Judicial Council Form MC-350) with the Superior Court. This petition must include details about the injury, medical treatment, all costs and expenses, attorney’s fees, and the total settlement amount. You must attach supporting documents like medical records and bills. Step 3: Set a Court Hearing After you file the petition, the court clerk will schedule a hearing. You must attend this hearing with the minor child. The hearing is typically set within a few weeks of filing. Step 4: Attend the Hearing for Approval At the hearing, the judge will review the petition and may ask questions to the Guardian ad Litem and the minor. The judge's primary goal is to confirm that the settlement is fair and in the child's best interest. The judge will also approve the attorney's fees, which are typically limited to 25% of the settlement in these cases. Step 5: Place the Funds in a Blocked Account If the judge approves the settlement, they will issue an order, usually an "Order to Deposit Money into Blocked Account" (Judicial Council Form MC-355). This order requires the net settlement funds to be deposited into a federally insured, interest-bearing bank account that the minor cannot access until they turn 18. Any withdrawal before that age requires a separate court order. Important considerations: The court's main concerns are the fairness of the settlement amount and the protection of the funds. The judge scrutinizes the breakdown of funds, including attorney’s fees and costs, to maximize the net recovery for the child. Note: This process is mandatory. An insurance company cannot legally pay a minor's settlement claim in California without this court approval. Failing to follow the correct procedure can invalidate the settlement. This is general information and does not constitute legal advice. For complex situations, consult with a qualified California attorney to ensure the process is handled correctly and your child's rights are protected.