Understanding Minor’s Compromise in California
Why a Minor’s Compromise is Required by Law
In California, minors (any person under the age of 18) have certain protections under the law, for example in matters involving financial compensation from a personal injury settlement. When a minor is injured and offered a settlement that exceeds $5,000.00, California law requires a court-supervised process known as a Minor’s Compromise to protect the child's best interests.
Parents or legal guardians must petition the court for approval before any settlement money can be released. The court evaluates whether the settlement is fair and ensures that the funds will be placed in a blocked account until the minor reaches adulthood.
Legal Framework and Statutory Authority
The Minor’s Compromise process in California is governed by several statutes and rules, which must be meticulously followed in order for the Court to approve settlement, including:
- Code §§1021, 3500–3613
- Code of Civil Procedure §§372–376
- California Rules of Court 3.1384, 7.101, 7.950–7.955
Certain courts may also have their own local procedural requirements.
The Minor’s Compromise Process in Los Angeles and Beyond
Filing the Petition and Preparing for the Hearing
In Los Angeles, the Minor’s Compromise process typically begins with a petition filed in the probate court—whether or not a personal injury lawsuit has already been filed. If no case number exists, the court will assign one. A hearing date will then be set where the minor, their parent or guardian, and their attorney must appear.
During the hearing, the judge will carefully review key documents to ensure the settlement is in the minor’s best interest, including:
- The proposed settlement offer
- Medical records and doctor’s bills
- Photographs of injuries
- Any liens or reimbursements owed to Medi-Cal, Medicare, or healthcare providers
- The attorney-client fee agreement and request for fees
Court Approval and Blocked Account
Once the petition for a Minor’s Compromise is approved, the court will order that the funds be deposited into a blocked account at a financial institution. You will need to submit the name and branch address of the bank to the court as well as the blocked account number. After the finds are deposited with the court’s approval, the money cannot be accessed without further court approval. This safeguards the minor’s financial interests until they turn 18. Even parents and guardians are prohibited from withdrawing from the account without explicit court permission.
At The Law Offices of Ali Taheripour, we have successfully handled Minor’s Compromise petitions across a wide range of civil matters including car accidents, dog bites, pedestrian injuries, and slip and falls. Contact us today for a consultation.