Protecting Your Child's Settlement: Understanding Minor's Compromises in California
In California, when your child is injured in an accident and a settlement is reached, state law requires judicial approval through a process called a "minor's compromise"—a protective measure designed to ensure the settlement amount is fair and that funds are properly safeguarded until your child reaches adulthood.
What Is a Minor's Compromise and Why Is It Required?
A minor's compromise is a court-approved settlement for anyone under 18 years old. California Probate Code Section 3600 mandates that any settlement involving a minor "shall not be valid" without judicial approval. This requirement serves as a critical safeguard.
The court acts as an independent reviewer to ensure the settlement amount adequately compensates your child for their injuries and that the funds will be properly managed. Even if all parties agree the terms are fair, judicial approval cannot be waived. The law protects minors from potentially inadequate settlements and ensures settlement funds are preserved until adulthood.
When Is Court Approval Required?
Judicial approval is mandatory for any settlement involving a minor, including personal injury cases, medical malpractice claims, wrongful death actions, and property damage cases where a minor has an interest.
There is no amount too small or too large to bypass this requirement. Whether the settlement is $3,000 or $300,000, approval is legally required.
The Filing Process
The process begins when a petitioner (usually a parent or guardian) files a petition with the appropriate California court. In cases where a parent might have a conflict of interest, the court appoints a Guardian ad Litem—a representative who acts solely in the child's interest.
Required documents include:
Petition for Approval of Minor's Compromise (Form MC-350, or Form MC-350EX for expedited review)
Proposed Order (Form MC-351)
Medical reports documenting injuries and treatment
Settlement agreement details and attorney fee breakdown
Documentation of any medical liens or expenses
Processing time typically takes 4-8 weeks from filing to approval. For smaller settlements under $5,000, courts may allow direct payment to a parent or guardian without establishing a blocked account, though approval is still required.
What the Court Reviews
The judge carefully evaluates several factors to determine if the settlement serves your child's best interests.
Settlement Adequacy: Does the amount fairly compensate for injuries, pain and suffering, and medical expenses? The court weighs whether the compensation adequately addresses both current and future impacts.
Case Strength: The judge assesses the strength of your case and the risks of proceeding to trial.
Attorney Fees: California Rules of Court 7.955 establishes standards—generally 25% for settlements reached without filing a lawsuit, 33.33% after litigation begins, and 40% if an appeal was involved. The court reviews these fees to ensure they are reasonable.
Liens and Expenses: All medical bills, liens, and costs must be verified and justified.
Most counties require a hearing where the child must attend if 12 or older, though judges may excuse attendance in certain circumstances.
The funds become accessible when your child turns 18. If extraordinary circumstances arise beforehand, you can petition the court to release funds early.
Why This Process Matters
The minor's compromise requirement ensures your child receives fair compensation through independent judicial review.
Consult with a personal injury attorney experienced in minor's compromises. Begin gathering medical records and treatment documentation. While the process requires time and patience, it provides essential protection that safeguards your child's financial future.