NORTH CAROLINA LEGAL UPDATE
December 3, 2018
About Minor Settlements
In North Carolina, if a child under the age of 18 is injured, any settlement of a liability claim by that child, or rather on behalf of that child, requires approval from the Court. This not only ensures the amount of the settlement is fair, but is also required for a number of other reasons.
North Carolina Rule of Civil Procedure 17(b)(1) requires that a Guardian Ad Litem be appointed to represent the interests of the child. The Judge must be sure the Guardian selected is appropriate, and fully understands their responsibilities in that role. If there were bodily injuries receiving medical treatment, typically those medical providers, or insurance companies, possess statutorily protected liens upon any liability proceeds, and the judicial approval also provides for confirmation of their payment as well. The Judge will also want to review the Plaintiff’s attorney’s fee arrangement and make sure it is fair as well. Though 33% is a common Plaintiff’s contingency fee, it is not unusual for Judges to reduce that amount with an injured child so that the child receives more of the proceeds. Unless other arrangements are agreed upon, the settlement proceeds are deposited with the Clerk of Court for the child to access when he or she turns 18. Sometimes when the settlement is a large one, an annuity can be purchased that will mature in to the agreed upon amount upon the child’s 18th birthday; and this also must be approved by the Court. Typically the Judges like to speak with the child and their parents in person to ask how the recovery from injury is coming. Finally, technically the parent is responsible for medical bills, not the child, and so this is also the opportunity for the parent to sign a Release and Settlement of those claims as well.
Local procedures can differ among Courts in North Carolina’s 100 county courts, in terms of which forms are used, and how such a Minor Settlement Approval gets in front of the Court to be heard. If the Plaintiff’s attorney is inexperienced, the defense attorney may need to play a larger role.
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Attorneys from Pope Aylward Sweeney and Stephenson LLP handle minor settlement agreements in courts all across the State of North Carolina. www.passlawyers.com