Personal Injury Claims Involving Minors in Washington State – the Court Approval Process
When you are a parent or guardian of a minor who has a personal injury claim, you have a significant responsibility. You must act in your child’s best interest, which means prioritizing the minor’s physical, mental, emotional, and financial interests to the best of your ability. Under Washington law, the courts act as a safeguard and require court approval of any settlement that involves a minor personal injury claim.
Hiring a personal injury lawyer in Washington at Schauermann Thayer means that you have someone involved in the process who is looking out for your child. Speak to us today during a free initial consultation to learn more about your case. Call us at (360) 695-4244 to talk to a lawyer.
Who Can Pursue a Minor Personal Injury Claim?
Generally, a person under the age of 18 years old does not have the legal ability or capacity to enter into a binding contract. A settlement of a personal injury claim is typically considered a legally binding contract and requires signing a settlement document called a “release.” Because of this, a minor cannot negotiate or agree to settle a personal injury claim on their own. A parent or guardian is required to pursue the claim on behalf of the minor. A parent or guardian is tasked with acting in the child’s best interest in pursuit of the personal injury claim, but may need help and guidance when faced with an offer to settle the minor child’s claim. This is the exact reason why the court is involved in the process: to look out for the interests of the minor child involved and to help make sure that any proposed settlement is fair.
If a minor settlement occurs without this required court approval, the settlement is legally voidable. There may also be serious legal consequences related to receiving and using settlement funds when the settlement was obtained without court approval. The minor may also have the ability to challenge the settlement when they turn 18. Most insurance companies want to protect their businesses from these legal risks and will require parents and/or guardians to go through the court approval process for minor personal injury claim settlements. If an insurance company doesn’t require this, that is a red flag and you should put the on notice of mandatory court approval process before accepting any settlement on behalf of a minor.
The Process for Court Approval of Minor Settlements in Washington
SPR 98.16 is the relevant court rule in Washington that requires court involvement in any tentative personal injury settlements for minors. Specifically, the rule requires you to seek approval from the court “in every settlement of a claim, whether or not filed in court, involving the beneficial interest of an unemancipated minor.”
Usually, a proposed minor personal injury settlement requires appointment of a “Settlement Guardian ad Litem” (SGAL) for the court approval process. The SGAL must be a qualified attorney that is neutral to the parties of the case. The SGAL is tasked with assisting the court in determining the adequacy of the proposed settlement. The SGAL works with the minors’ parent/guardian and legal counsel to understand the claim and proposed settlement, then they prepare a report for the court with their opinions and recommendations.
The court rule outlines all of the specific steps that the court approval process requires:
- Petition for the approval of the proposed settlement
- This must include the child’s name and date of birth, whether anyone else has any related claims, the amount of any liens, fees, costs, and expenses, and a description of the proposed distribution of the settlement funds that notes the net amount of money for the minor.
- Appoint a Settlement Guardian ad Litem
- The SGAL prepares a detailed report that is filed with the court along with the petition. The report includes detailed information about the personal injury claim, the minor’s injuries and damages, medical liens, the proposed form of the settlement, and attorney’s fees and costs. The SGAL makes their recommendations regarding the proposed settlement in this report as well.
- Court makes final determination and order regarding whether the proposed settlement is approved. The judge may decide to hold a hearing.
- If the judge approves the settlement, the court will issue an order that provides clear instructions on how the settlement funds are to be distributed and what happens to the net amount of money for the minor.
Even after the settlement has been approved by the court, parents do not have free rein to determine how the money is used. The settlement funds are usually required to be placed in a blocked account until the minor turns 18. The parents must petition the court for the ability to use that money on behalf of the child before they turn 18. For example, the parents may need to use settlement money to pay for the child’s medical care. Then, they would need specific approval from the judge. Otherwise, the money is held on behalf of the minor child until they reach the age of 18. Other than the blocked account, there are a few different options for how to handle the net amount of money to the minor. This may involve structuring the settlement, or placing the settlement into a trust.
Contact a Personal Injury Law Firm in Washington
Minor settlements can be daunting for parents and guardians who want the best for their children. Having a personal injury attorney on your side can help take the weight of this burden off of your shoulders. At Schauermann Thayer, we help from the very beginning all the way through the court approval process to make sure minor claims are handled efficiently and accurately. You can schedule a free initial consultation by filling out an online contact form or by calling us today at (360) 695-4244.
