Minor's Compromise Hearing
When we settle a child's bodily injury claim, a judge has to approve the settlement. This is required because a minor cannot enter into a contract, and the state wants the child to be treated fairly. The details about the claim and settlement are filed at court. After that, there usually is a hearing. This is "nonadversarial," meaning that only the child, his parents and their attorney are present. The hearing lasts only a few minutes, and should be regarded as a short ceremony to celebrate the end of a bad chapter.
The parent or parents who will appear at the hearing need to do a little bit of preparation:
• Read the petition, its exhibits, and the order of approval.
• Review the accounting and make sure you understand where the settlement money is going.
• Review the annuity proposal that you selected for a structured settlement, and ask your attorney any questions you may have about it.
The child also needs to be prepared. Tell him or her to be very respectful and polite to everyone at court. The judge will love being addressed as "Your Honor," so make your child practice saying "Yes Your Honor," "No Your Honor" and "Thank you Your Honor."
It is not possible to predict exactly what will come up in the hearing. Nevertheless, some typical dialogue appears in the next section. Review it but do not memorize it.
The three key points you have to remember:
1. First, you are informed. You read the documents which were filed at court, you understand them, and you agree with them.
2. Second, you want the settlement. This is a fair settlement, and the expenditures are also fair. You want the settlement.
3. Third, you have no questions and no doubts.
If the judge senses that you are not informed, do not quite understand the settlement, are unsure whether you agree with it, or that you have questions about it, there will be no approval and therefore no settlement.
So inform yourself, ask your questions before the hearing, and attend the hearing with a clear mind and happy attitude!
A Typical Exchange At the Minor's Compromise Hearing
Judge: I take it you are the father of the injured minor?
Parent: Yes Your Honor.
Judge: Have you read the petition?
Parent: Yes Your Honor.
Judge: Do you agree with it? Is it correct?
Parent: Yes Your Honor. I agree with it and it is correct.
Judge: Is there anything that you want to ask me or your attorney about it?
Parent: No Your Honor.
Judge: How is your child doing now?
Parent: He is doing fine.
Judge: Does he have any complaints about what happened, any aches and pains?
Parent: He does not have any complaints, aches or pains. He has a scar on his cheek, which you can see.
Judge (to the boy): Let me see you. Come closer. How are you doing today?
Boy: Fine, Your Honor.
Judge: You look great. You are not afraid of dogs, are you?
Boy: No Your Honor. We have a dog. I like him.
Judge: Well that is just fine. You can go back and stand next to your father. (To the father:) Have you decided whether to give him any more medical treatment?
Parent: We have discussed it. We do not think this is the right time. If he wants it in the future, we can do something then.
Judge: Okay. You understand that this is a final settlement, and that you are not going to be able to get anything else except what has already been agreed to?
Parent: Yes Your Honor.
Judge: You have asked your attorney all the questions you have about this?
Parent: Yes Your Honor.
Judge: Do you recommend the settlement to this Court?
Parent: Yes Your Honor.
[The judge thereafter asks the child's lawyer several questions about the settlement.]
Basic Information Needed Before Drafting the Closing Documents
Here are the questions that an attorney must get answers to before drafting the documents needed to set a minor's compromise hearing:
- Who are the lienholders and how much is each lienholder seeking?
- How much less (if any) will each lienholder agree to accept?
- Which health care providers are owed money for the child's treatment, irrespective of liens?
- How much less (if any) will each health care provider agree to accept?
- Were any treatment costs paid by the victim's health insurance?
- If so, how much less (if any) will the health insurer agree to accept?
- Which court will hear the petition or complaint?
- Which attorney will appear for the hearing?
- If the attorney is not the one handling the case in general, how much will this attorney charge?
- How much does the court charge as a filing fee?
- Will the defense pay for the court filing fee?
- Does the court require the appointment of a guardian other than one or both parents?
- If an unrelated guardian is appointed, what will he or she charge as fees and costs? (Find out the likely amount and also the highest amount so that enough funds can be reserved.)
- Will the defense pay for the guardian's fees and costs, if there is an unrelated guardian?
- Is the guardian or conservator required to post a bond?
- Will the defense pay the cost of the bond?
- Do the parents need to be reimbursed from the settlement?
- If so, how much reimbursement do they seek?
- Are there receipts to justify the amount of reimbursement being sought?
- Does the court require an affidavit from the parents in support of their request for reimbursement?
- Does the court require the attorney to present a detailed breakdown of services rendered and hours expended?
- If so, how much detail is required?
- Will the court approve a contingency fee in the amount of 33-1/3% or whatever has been stated in the Attorney Retainer Agreement?
- If not, what rate will the court approve?
- Are the attorney's recoupable costs deducted before the fee is calculated?
- Is the parental reimbursement amount (if any) deducted before the fee is calculated?
- Are the medical expenses deducted before the fee is calculated?
- Are the parents required to pay a portion of the attorney's fee and recoupable costs from their reimbursement?
- Do the parents feel that any settlement money should be set aside for medical treatment prior to the child turning 18 years of age?
- If so, how much money should be set aside for the child?
- Is the child's money required to be deposited into court, and is there a fee for this?
- What is the name and address of the bank where the funds will be kept?
- If there are funds in excess of the amounts required to pay all of the foregoing, should they be invested in an annuity?
- If so, how much should be paid to the child upon attaining 18 years of age?
- Assuming there will be more money in the annuity, at what intervals should the child be paid after age 18?
- Has the attorney obtained an annuity payment schedule (or "quote") in writing?
- Is the annuity issuer a highly rated life insurance company?
- If the annuity issuer is a "straw company," is there a written guarantee from the life insurance company?
