Why a Judge Must Approve a Minor's Settlement in Arkansas

By the FigureMyTax Editorial Team · How we calculate

The Arkansas Supreme Court has long held that a guardian cannot compromise a minor's interests without court approval, and that the court must investigate the merits of the compromise, not merely be told about it.

The rule

In Davis v. Office of Child Support Enforcement (1995), the Court wrote that it has long been the law in Arkansas that the interests of a minor cannot be compromised by a guardian without approval by the court, and that it is not enough for the court to be made aware of a compromise the guardian agrees to: the court must make a judicial act of investigation into the merits of the compromise and its benefits to the minor.

The statute

Ark. Code 28-65-318(a) says that on petition of the guardian of the estate, the court, if satisfied that the action would be in the interest of the ward and the ward's estate, may authorize the settlement or compromise of any claim by or against the ward. Subsection (b) adds that a settlement of a tort claim against a ward made by the guardian is binding without approval, but the guardian cannot take credit for money spent unless it was authorized in advance or later shown to have served the ward's interest.

How it works in practice

A national survey of minor-settlement law by plaintiffs' lawyers describes the Arkansas path as appointing a guardian, petitioning the probate division for approval, and, in most courts, holding a hearing on whether the settlement is in the child's best interest. That survey is dated, and it cites an older estate threshold than the statute now says; see how smaller estates can avoid a guardianship.

Who is a minor

Ark. Code 9-25-101 says persons of eighteen years are of full age for all purposes, and until then they are minors.

Deadlines are separate

Personal injury claims are generally subject to a three-year limit (Ark. Code 16-56-105), and a separate tolling statute covers minors (16-56-116). Its text refers to age twenty-one, and section 9-25-101(b)(1) treats minimum ages of twenty-one in Arkansas law as eighteen. Ask an attorney how these fit together before assuming you have time.

After approval

The court directs how the money is held; see how the attorney fee fits in and run your numbers in the Arkansas minor's settlement calculator.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Arkansas's rules apply to your specific case with a licensed Arkansas attorney.