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Minor's Compromise

Minor's Compromise Information

Effective January 1, 2002 the California Rules of Court were amended concerning petitions for orders compromising minor's claims. (See Rules 3.1384, 7.950, 7.951, 7.952, 7.953, 7.954.) These new rules must be complied with before the court order will issue an order compromising a minor's claim.

The court will continue to calendar a hearing date upon the filing of a petition for approval of a minor's compromise and will post a tentative ruling the day before the hearing in the same manner as a civil law and motion matter. (See CRC 3.1308 and Local Rule 2.8.4.)

If the petition and proposed order fully comply with the Rules of Court AND if the following additional information is provided, it is likely the court's tentative ruling will indicate that the order has been signed and the hearing vacated. The additional information is:

  1. County of residence of minor
  2. Statement of amount of insurance policy limits
  3. If insurance policy limits are being paid and value of minor's claim exceeds those limits, evidence of asset check of culpable party must be provided to court, along with statement by attorney that his/her investigation has not identified any other available insurance
  4. When applicable, a statement of reasons why an annuity/structured settlement is not being proposed/considered
  5. Statement by Petitioner that he/she requests the court approve the settlement and that he/she understands that court approval will render settlement final and binding on minor.
  6. Name of proposed trustee for blocked account and, if different from Petitioner, an explanation why Petitioner is not proposed trustee

All proposed orders shall include the following:

  1. Amount of net proceeds to be deposited
  2. Name and address of institution for deposit of funds
  3. Name of trustee for account
  4. Provision that money may only be released to minor upon attaining the age of 18 years (month, day and year of 18th birthday to be specified in order) or by court order
  5. Amounts to be paid to medical providers, lien claimants, attorney, parent, etc.
  6. Provision that a file-stamped copy of order will be provided to the institution at the time of deposit and that a receipt from the financial institution must be promptly filed with the court, acknowledging receipt of both the funds deposited and the order for deposit of funds. (CRC Rule 7.953(a).)

Frequently Asked Questions About Minor's Compromise

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