Settling Florida Personal Injury Claims Involving Minors: What Parents Need to Know
The vast majority of Florida personal injury cases are settled out of court. For plaintiffs, a settlement means a guaranteed amount of compensation without having to go to trial and risking a defense verdict. Similarly, defendants who fear a jury might return a large award of damages for the plaintiff have an incentive to settle now and limit their potential liability.
Personal injury settlements are a type of contract. When it comes to an adult plaintiff, they are assumed to have the requisite legal capacity to enter into such binding settlement agreements. When the victim is a minor, however, Florida law imposes some additional requirements on proposed personal injury settlements designed to protect the child’s interests.
Protecting the “Best Interests of the Child”
Under Florida law, whenever there is a settlement of a personal injury claim involving a victim who is a minor, the court overseeing the lawsuit must approve the settlement. In cases where the settlement does not exceed $15,000, the minor’s “natural guardian,” usually their parents, can consent to the settlement on the child’s behalf. If the proposed settlement exceeds $15,000, however, the court must establish a “legal guardianship” for the child. This is a guardianship for the child’s property–i.e., the settlement–and does not affect the parent or natural guardian’s right to raise the child. Indeed, the court can and often will simply name the minor’s natural guardian as the guardian of the settlement, assuming there is no conflict of interest.
When a proposed settlement exceeds $15,000, the court may also appoint a person known as a guardian ad litem to protect the minor’s interests. A guardian ad litem is simply an attorney who represents the child, as opposed to the parents, and helps to advise the court on the settlement. A guardian ad litem must be appointed anytime the proposed settlement exceeds $50,000.
In deciding whether to ultimately approve a personal settlement involving a minor, the court must determine if the proposed terms would be “in the best interests” of the child. Put another way, the judge must decide if the settlement is “fair, adequate, and reasonable and is not the product of collusion between the parties.” The judge must also take into account the potential costs and risks of trying the case if they reject the proposed settlement.
Once approved, the child’s natural guardian (or court-appointed guardian for the settlement) may then collect the settlement proceeds on behalf of the child. This typically includes signing releases waiving any future legal claims against the defendants, provided they comply with the terms of the settlement agreement. For larger settlements, the court-appointed guardian may need to continue managing the minor’s settlement funds until the child turns 18.
Contact a Pasco County Personal Injury Lawyer Today
If your child has been seriously injured in an accident caused by someone else’s actions, you have a right and a responsibility to demand compensation. Our Pasco County personal injury lawyers can help. Contact Wendy Doyle-Palumbo, Esq., today at (727) 233-2134 to schedule a consultation. We serve clients in Hudson, New Port Richie, and Pasco County, Florida.