Injured Child: How a Minor's Settlement Works
A child cannot settle a claim alone
When a child is hurt, the claim belongs to the child, not to the parents. A child cannot sign a binding settlement, and in California, a parent’s signature is not enough on its own either.
A settlement of a child’s claim is valid only after a court approves it (Probate Code § 3500). That process is called a minor’s compromise.
Why the court gets involved
The rule exists to protect children. A judge reviews the settlement to make sure the amount is fair for the injuries, that the attorney’s fees and costs are reasonable, that medical bills and liens are being handled properly, and that the child’s money will be safe until they are old enough to manage it.
It is not a trial. In many cases the hearing is short, and sometimes the court approves the petition without one.
How it works
- The settlement is negotiated. A parent, usually acting with the child’s lawyer, works out the terms with the insurer.
- A petition is filed. The lawyer files a petition with the court, on the Judicial Council form used for this purpose, describing the injury, the treatment, the settlement, the fees and costs, and the plan for the money.
- The court reviews it. The judge may approve it as written, ask questions, require changes, or set a hearing. The child and a parent may need to attend.
- The money is placed under protection. Once approved, the settlement is paid under the court’s order.
If a lawsuit has been filed, a parent or other adult is usually appointed as the child’s guardian ad litem, the person who represents the child in the case.
Where the money goes
The court decides how the child’s money is held. The most common arrangements are:
- A blocked account. The money is deposited in an insured bank account. Nobody can withdraw it before the child turns 18 without a court order. At 18, the child can withdraw it.
- An annuity or structured settlement. For larger settlements, the money may be invested to pay out over time, often starting at 18 and continuing into adulthood.
- A trust, in some cases, particularly for a child with lasting needs.
Parents cannot use the settlement for household expenses. In a real emergency involving the child, the court can be asked to release funds.
The parents’ own claim
Parents may have a claim of their own, separate from the child’s, for the medical expenses they paid for the child’s care. That claim is handled alongside the child’s, and the petition has to account for both.
Deadlines are different for children
The deadlines for a child’s injury claim generally work differently from an adult’s, and in many cases they are longer. But there are important exceptions, including claims against a city, a school district or another public agency, where a short deadline can still apply. Do not assume there is time. Ask.
Talk to Boyd
If your child was hurt, call. Boyd will explain how the claim and the court approval work in your child’s case. The consultation is free, and Boyd takes the call himself: (714) 656-2400.