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

By the FigureMyTax Editorial Team · How we calculate

A parent may compromise a child's disputed claim, but the compromise is valid only after the superior court approves it on a petition. In a pending lawsuit, a guardian or guardian ad litem needs the court's approval as well.

The statute

Probate Code 3500 says that when a minor with a disputed claim has no guardian of the estate, either parent (or the parent with care, custody or control if they live apart) has the right to compromise it, but the compromise is valid only after it has been approved, upon the filing of a petition, by the superior court of the county where the child resides or any county where suit properly could be brought. A parent may sign a full release only after the money has been paid or delivered as the court ordered; if the court orders the money deposited in an insured account or annuity, the release is not effective until the money is deposited.

In a lawsuit

When a minor is a party to a case, the minor appears through a guardian or conservator of the estate or a guardian ad litem, who has power to compromise only with the approval of the court where the case is pending (Code of Civil Procedure 372(a)(3)).

What the petition must say

The petition must be verified and must contain a full disclosure of all information that has any bearing upon the reasonableness of the compromise, and must use Judicial Council form MC-350 (rule 7.950). A shorter form, MC-350EX, is allowed only if all nine conditions in rule 7.950.5 are met, including representation by a California attorney, no wrongful death claim, no trust, no lien disputes and a total of $50,000 or less (or the policy-limits exception). The court must decide an expedited petition within 35 days unless a hearing is held.

Who is a minor

Family Code 6500 defines a minor as an individual under 18 years of age.

Deadlines are separate

The general limit for injury is two years (Code of Civil Procedure 335.1), but the time of minority is not part of the period for most actions (Code of Civil Procedure 352); that tolling does not apply to claims against public entities that require a government claim. Ask an attorney how this applies before assuming you have time.

After approval

The court orders fees and expenses paid and then directs the balance; see blocked accounts, annuities and trusts and how the fee is set. Run your numbers in the California minor's settlement calculator.

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