Who is considered a Minor?
California Law states that people under the age of 18 are minors. (Cal. Fam. Code section § 6500)
What legal rights does a child / minor have in California after an injury?
A child or person under 18 has the same ability to recover as an adult when it comes to receiving compensation for their personal injury case. They are entitled to get their medical bills paid, money for pain and suffering, and money for future medical bills and pain and suffering. If a child is permanently disabled, they would also be able to recover money for their future inability to provide for themselves. There are many damages that need to be considered when a child is injured. A personal injury attorney that has experience in these types of cases can help navigate these damages and help recover the compensation needed.
How can a minor sue someone if the responsible party is not taking responsibility?
In order for a minor to bring a lawsuit for a personal injury case, they must have a guardian ad litem appointed by the court. (Cal. Code of Civ. Proc. § 372) A personal injury attorney can represent the guardian ad litem on behalf of the injured minor. In order for the case to proceed on behalf of a minor, the court must approve the Application and Order for Appointment of Guardian Ad Litem-Civil which is a standard Judicial Council Form CIV-010. Some cases can be resolved without having to file a lawsuit. When that happens, a minor's compromise still has to be filed in the court.
How does a child / minor settle their case if they can't sign a contract?
When someone under the age of 18 is injured, they are not able to deal with their legal problems on their own. In order to settle a personal injury case, insurance companies usually require that a settlement contract (release) be signed. In California, minors are legally able to enter into a contract for certain things, but can cancel the contract before they turn 18 or a reasonable time after they become an adult. (Cal. Fam. Code § 6700 & 6710) Parents are usually required to sign off on releases for their children before they turn 18.
Who can sign the release to settle a child's / minor's case?
California Probate Code § 3500 gives the rights to sign a release to the parents, but that release only becomes valid after it has been approved by the court. (Cal. Prob. Code § 3500 (b)) Sometimes a guardian ad litem is required to sign the release.
What is a Minor's Compromise?
California has enacted laws to protect personal injury money that belongs to the injured child. A minor's compromise is the petition that one must file in order to get the court approval to compromise or settle a minor's case. There are two versions, a Petition to Approve Compromise of Disputed Claim or Pending Action (MC-350) or an Expedited Petition to Approve Compromise of Disputed Claim or Pending Action (MC-350EX). The Expedited version is used for non-death cases where the total proceeds of the settlement are less than $50,000 and not being placed in a trust. The expedited petition does not require a hearing to be granted. The regular petition (MC-350) does require a hearing with the parent or guardian ad litem, the attorney, and the minor child. The judge makes sure that it is proper to settle the case and that the minor is protected.
Do I have to get my child's case approved by a judge?
Yes. The law requires that a minor's compromise be completed when settling a minor's case. (Cal. Prob. Code § 3500(b)) Some insurance companies settle for values $5,000 or less without a minor's compromise, but they are running the risk that the settlement could be cancelled or found invalid.
Where do i File a minor's compromise? which county do i file a minor's compromise?
A minor's compromise petition can be filed in the superior court in either the county where the minor lives when you file the minor's compromise or in the county where a lawsuit could be brought. (Cal. Prob. Code § 3500(b)) A personal injury lawsuit usually can be brought in the county where the defendant resides or where the accident happened.
Click here to see a map with links to the county court websites which provide California County specific information on how to file. Each county operates differently and sometimes each judge within that county may have different courtroom rules.
Why do I have to get my child's case approved by a court?
The law has been made to protect the child's interests. The judge approves everything in the case from the medical bills, costs, and attorney's fees. The court is looking out to protect minors from everyone else. It can be a difficult, complicated process, but the purpose is to protect those that are vulnerable.
Where do I start with a minor's compromise?
The first thing to do is to call a personal injury attorney to make sure that your rights are being protected and that you are getting the full settlement offer on your case. Another complicated issue that has to be addressed is the reimbursement of health insurance. Whether it be Medi-Cal or a private insurance company, they will want their money back out of the proceeds. Make sure you contact an attorney that understands these types of lien issues so that you don't overpay. Contact us for a free consultation.
What forms are needed for a minor's compromise in California?
Each county handles things a little bit differently. Some counties require that you look into annuity options. Some require a guardian ad litem appointment. All county courts will use certain standard Judicial Council Forms such as the MC-350. Other forms such as the MC-351, Order Approving Compromise of Disputed Claim or Pending Action, MC-355, Order to Deposit Money Into Block Account, and MC-356, Receipt and Acknowledgment of Order for the Deposit of Money Into Blocked Account, will be used in all counties. We have handled minor's compromises in many different counties throughout California.
What are the options for the money after a minor's compromise in California?
Before a judge approves the settlement, the decision needs to be made on what to do with the minor's funds. If the remaining balance due to the minor are $5,000 or below, a judge can approve that the money be given to the parents for the benefit of the minor. (Cal. Prob. Code § 3611 (e)) If the funds are more than $5,000, the funds are usually placed in a blocked account at a bank or credit union. (Cal. Prob. Code § 3611 (b)) The account is blocked because the money cannot be accessed without court approval until the minor turns 18. When there are larger settlements, then annuities through life insurance companies are explored. Each child's situation is different depending on age, amount of settlement, and disability. Special needs trusts are also an option to permanently disabled children. It is important to gather the advice of a financial and legal professionals to help navigate these areas.
Can parents get their expenses paid back in a minor's compromise?
Parents are able to receive reimbursement of the expenditures for medical expenses and certain other costs spent on behalf of their child through court approval. (Cal. Prob. Code § 3601 (a))
How can an attorney help me with a minor's compromise?
Minor's petitions are often an overly complicated process and even many of the courts don't fully have a grasp on how to handle these compromises and all of the different situations and scenarios that arise. An attorney can help make sure that you get the full value of the case and can take care of the detailed petition with attachments and in connecting you with structured settlement brokers that can give quotes for the annuities. If your child has a claim for injuries against another person, contact us to discuss your options.