Minor's Compromise

Let me add another word to the discussion about children's injuries from the last blog. To recap, after a settlement of a child's personal injury case, the lawyer files a Minor's Compromise with the court to get approval of the settlement. In the order that the lawyer prepares and the Judge signs, the lawyer takes back his or her costs and legal fees. The remainder of the money is placed in a special, restricted account for the child.

The money sits, untouched, and continues to grow with interest until the child reaches his or her eighteenth birthday. At that point, the child has access to the funds, which may be used for college, buying a first home, or any other purpose. The parents or guardian of the child do not control or direct the money and may not take it for themselves or even to help support the child's needs.

There is an exception to this. (There always seems to be an exception in the law!) If there is a pressing need, then an application may be made to the Judge to take out some or all of the money. One time, I had a case where a fifteen year old was in a car accident. After the case settled and I deposited the boy's money in a restricted minor's account, he got arrested for shoplifting. I worked out a deal with the prosecutor to pay a fine and have the charges dismissed, but neither the boy nor his mother had the money for the fine. I made an application to the Judge, who ultimately allowed us to take out the fine money from his restricted account. Generally, it takes a very serious issue like this to cause an exception.