Can a Minor Settle a Personal Injury Claim in California?
In California, when a child under 18 is injured due to someone else’s negligence—such as in a car accident, a slip and fall, or medical malpractice—they may be entitled to compensation. However, minors cannot legally settle their claims without court approval. This process is known as a minor’s compromise, ensuring that the settlement serves the best interests of the child.
What Is a Minor’s Compromise Under California Law?
A minor’s compromise is a legal procedure where a California court reviews and approves the settlement of a personal injury claim involving a minor. Since children cannot legally enter into contracts or make binding financial decisions, a judge ensures that the settlement is fair and that the funds are protected for the child’s future.
How Does the Minor’s Compromise Process Work in California?
In California, the process typically involves these steps:
1. Petition for Court Approval – The minor’s parent or guardian files a petition with the court requesting approval of the settlement.
2. Appointment of a Guardian ad Litem – The court may appoint a guardian ad litem (a neutral third party) to represent the child’s best interests.
3. Review of the Settlement Terms – The judge evaluates whether the amount offered is reasonable given the injury’s severity and long-term impact.
4. Allocation of Funds – The court determines how the funds will be handled, often requiring that they be placed in a blocked account or a structured settlement that the minor can access upon turning 18.
5. Court Hearing – A hearing may be scheduled where the judge asks questions to ensure the settlement benefits the minor.
6. Approval and Disbursement – Once approved, the funds are distributed according to the court’s orders, often with protections to prevent misuse.
Specific Procedures in Orange County, California
In Orange County, the Superior Court has established specific procedures for handling minor’s compromise petitions:
Filing Requirements: Petitions should be filed in the Probate Clerk’s office.
Forms: The required forms include:
- Petition to Approve Compromise of Claim (MC-350)
- Order Approving Compromise of Claim (MC-351)
- Order to Deposit Money into Blocked Account (MC-355)
- Receipt and Acknowledgment of Order for the Deposit of Money into Blocked Account (MC-356)
Why Do California Courts Need to Approve Settlements for Minors?
California law requires court approval to prevent parents or guardians from mismanaging or unfairly settling claims on behalf of minors. Courts also protect children from being pressured into accepting settlements that may not fully account for future medical expenses or other long-term consequences.
What Happens to the Settlement Money in California?
Courts typically order one of the following:
- Blocked Accounts: Funds are placed in a secure account that only the child can access at 18.
- Structured Settlements: Payments are scheduled over time, often beginning when the child reaches adulthood.
- Special Needs Trusts: If the child has disabilities, funds may be placed in a trust to preserve eligibility for government benefits.
Can Parents or Guardians Use the Settlement Money?
Generally, no. Parents cannot access the money unless they petition the court for reimbursement of medical expenses or other costs related to the injury. Even then, the court ensures that only justified expenses are reimbursed.
How Long Does the Minor’s Compromise Process Take in California?
The timeline varies by jurisdiction but typically take much longer than an injury to an adult, even after a settlement agreement is reached. Factors such as court scheduling, document review, and whether a hearing is required can affect the timeline.
What Should Parents Do if Their Child Is Injured in California?
If your child has suffered an injury due to negligence, take these steps:
- Seek Medical Attention: Immediate care is crucial to document the injury and ensure proper treatment.
- Gather Evidence: Take photos, obtain witness statements, and keep medical records.
- Consult a Personal Injury Lawyer: An attorney can help determine the best legal strategy and guide you through the minor’s compromise process.
- Avoid Quick Settlements: Insurance companies may offer low settlements. Always consult a lawyer before accepting an offer.
Do You Need a Lawyer for a Minor’s Compromise in California?
While it’s possible to handle the process without an attorney, working with a personal injury lawyer ensures that your child receives fair compensation and that all legal procedures are properly followed. An experienced lawyer will negotiate with insurance companies, file necessary paperwork, and represent your child’s best interests in court.
Contact Us for a Free Consultation
If your child has been injured and you need help navigating the minor’s compromise process in California, our legal team is here to assist. Contact us today for a free consultation to protect your child’s rights and future.
Spencer K. Schneider is a part of the Schneider & Branch Law Partnership.
