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Settlement of Your Child's Injury Claim
Posted by: Nicholas Mayle
August 27, 2010
Topic: Personal Injury
After you have been involved in a collision, resolving your claim with the insurance company can be very complicated. This is especially true if your child or children were also injured in the collision. Even if you do not file a lawsuit to resolve your family's claims against the insurance company, Colorado law requires that all settlements with children be approved by the court.
The rationale for this rule is that a person is deemed to be of legal age at age eighteen and only then may they enter into a binding contract or settlement. Section 13-22-101, C.R.S. A child under the age of eighteen does not have the ability to enter into a binding contract. Jones v. Dressel, 623 P.2d 370, 373 (Colo. 1981). A child that enters into a contract or settlement may actually disaffirm the contract within a reasonable time after they reach the legal age. Id. Thus, any settlement of a child's claim requires court approval to be considered a legally binding settlement.
When a settlement on a child's claim is proposed, the parent or guardian must obtain the approval of the settlement by the probate court under Rule 16 of the Colorado Rules of Probate Procedure. An insurance company would be reluctant to provide a settlement to a child without final court approval because they would risk that the child would make another claim or file a law suit when he or she turns eighteen. Additionally, the child benefits from court approval because the job of the probate court is to ensure the child is receiving a fair settlement and that the settlement proceeds would actually be used for the child's benefit.
However, court approval of the settlement is not the final step. For settlements of $10,000 or more, generally a conservator must also be appointed for the child. A conservator is an individual appointed by the court to actually distribute the settlement money to the child. The conservator would have to decide if the money should be given to the child right away, slowly over the years, or not until the child reaches a certain age. The distribution depends on the circumstances of each child's case. In some circumstances, the child may be severely injured and need the money immediately for medical expenses. In other circumstances, it may make more sense to hold off on distribution until it is necessary to pay for the child's college expenses. In any event, in cases involving a settlement over $10,000 a petition for appointment of conservator should also be filed with the probate court.
The process of resolving the child's claim with the insurance company, obtaining court approval of the settlement, and having a conservator appointed can be complicated, even in small cases. If you and your child have been involved in a collision, you should strongly consider obtaining the help of an experienced attorney to ensure that your child's settlement is done correctly.
