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

By the FigureMyTax Editorial Team · How we calculate

In Texas, a minor with no legal guardian sues through a next friend, who may compromise the suit only with the approval of the court. Approved compromises are forever binding on the child. We found no dollar threshold below which approval is not needed.

The rule

Texas Rule of Civil Procedure 44(2) says a next friend or his attorney of record may, with the approval of the court, compromise suits and agree to judgments, and approved judgments, agreements and compromises are forever binding on the plaintiff. We read the rule in compilations of it, not on the court's own page.

Guardian ad litem

Rule 173 lets the court appoint a guardian ad litem, an officer and advisor to the court, and contemplates one where the next friend may have an interest adverse to the child in dividing settlement proceeds. The court may tax the guardian ad litem's compensation as costs.

Where the money goes

The court may direct the clerk to deliver the funds to a financial institution under a management trust (Tex. Prop. Code 142.005). See how management trusts work.

Deadlines

The time of a minor's disability is not included in the limitation period (Tex. Civ. Prac. & Rem. Code 16.001), and personal injury suits must be brought within two years (16.003), so about age 20. Ask an attorney before assuming you have time. Run your numbers in the Texas minor's settlement calculator.

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