California Minor’s Compromise: How Settlements Work for Injured Children
January 8, 2026- Categories: Personal Injury
A California Minor’s Compromise is a legal process required for court approval of any personal injury settlement for a child under 18, designed to protect the child’s financial interests.
This court-supervised procedure is mandatory because a minor cannot legally sign a contract, including a settlement release, making the court’s oversight necessary to finalize the claim.
When a child is injured, navigating the settlement process presents unique challenges. A personal injury lawyer for child injuries can manage the complexities of a California Minor’s Compromise, ensuring the settlement is fair and properly structured.
The team at Neale & Fhima understands these sensitive cases and is prepared to guide families through the court approval process.
When you are ready to learn how settlements work for injured children under the California Minor’s Compromise, schedule a free case evaluation with our experienced personal injury law firm in California.
Key Takeaways About California Minor’s Compromise: How Settlements Work for Injured Children
- Court approval is mandatory: Any personal injury settlement for a child in California, regardless of the amount, must be approved by a judge to be legally binding. This protects the child from an unfair settlement.
- Funds are protected for the child: A judge will order the settlement funds to be placed in a blocked account that the child can access upon reaching the age of 18. This prevents the parents or guardians from using the money for their own purposes.
- A lawyer helps prove fairness: An attorney helps demonstrate to the court that the settlement is reasonable and in the child’s best interests. This involves gathering medical records, documenting future care needs, and preparing the Petition to Approve Compromise of a Minor’s Claim, as required under California Probate Code § 3500 and § 3600.
- The process can be complex: In counties like Orange County or Los Angeles, local court rules add another layer of complexity. A lawyer experienced with these local procedures can prevent delays and protect the child’s recovery.
What is a California Minor’s Compromise?
When a child under the age of 18 is injured due to someone else’s negligence, any settlement reached with an insurance company is not legally valid until a judge approves it. This formal court proceeding is known as a Minor’s Compromise.
The primary goal is to safeguard the child’s financial future by having a neutral judge confirm that the settlement is fair and in the “best interests of the child.”
Because children cannot legally enter into contracts, they cannot sign a release to finalize a settlement. The Minor’s Compromise process addresses this by allowing a judge to approve the settlement on the child’s behalf, making it legally binding and preventing future claims for the same injury.
Why Court Approval Is Required for Minor Settlements In California Injured Child Personal Injury Cases
The court approval process was established to protect children. Without it, an insurance company could potentially pressure a family into accepting a low settlement that fails to cover the child’s long-term medical needs.
The judge acts as a gatekeeper, reviewing all aspects of the case to confirm the settlement is adequate. During a Minor’s Compromise hearing, the judge will review:
- The facts of the accident
- The extent of the child’s injuries and medical treatment
- The total amount of the settlement
- The proposed use of the funds, including payment of medical bills and attorney’s fees
- The plan for managing the remaining funds until the child turns 18
This judicial oversight provides a critical layer of protection when a child’s well-being and financial future are at stake.
The Role of a Guardian ad Litem in California Personal Injury Claims for Children
Since a minor in California cannot file a lawsuit on their own, the court appoints a responsible adult to act on their behalf. This person is referred to as a “guardian ad litem.” Usually, a parent or legal guardian is appointed to this role.
The guardian ad litem is responsible for making decisions throughout the legal process, from hiring an attorney to approving the final settlement terms. Their primary duty is to act in the child’s best interests.
Personal injury lawyers work closely with the guardian ad litem to prepare the necessary legal documents, including the petition for court approval, and represent them during the Minor’s Compromise hearing.
How Settlement Funds Are Managed for Minors Injured By Someone Else’s Negligent Actions in California
A key part of the Minor’s Compromise is ensuring the settlement funds are protected until the child becomes an adult. A parent cannot simply deposit the money into their own bank account. Instead, a judge will order the funds to be placed in a specific financial arrangement.
Common options include:
- Blocked account: The most frequent arrangement is a court-ordered, restricted bank account. The money is deposited and cannot be withdrawn without a subsequent court order until the child reaches the age of 18.
- Structured settlement: For larger settlements, a judge may approve a structured settlement or annuity. This provides periodic payments to the child over time, often starting at age 18, which can help manage large sums of money responsibly.
- Special needs trust: If the child has significant long-term disabilities, the funds may be placed in a special needs trust. This allows the child to receive the settlement money without jeopardizing their eligibility for public benefits, such as Medi-Cal.
An attorney can help a family decide which option best suits their child’s needs and present that plan to the court for approval.
California Minor’s Compromise FAQs
How long does the Minor’s Compromise process take?
The timeline can vary depending on the court’s schedule. After a settlement is reached, your attorney will file the petition. The hearing is typically scheduled within a few weeks to a couple of months. Some courts offer an expedited process for smaller, straightforward settlements.
Do my child and I have to appear in court?
In many cases, both the guardian ad litem and the injured child are required to attend the hearing. This allows the judge to ask questions about the accident, the child’s recovery, and their understanding of the settlement.
Can medical expenses and attorney’s fees be paid from the settlement?
The judge will review all medical bills and attorney’s fees to confirm they are reasonable. Once approved, these costs are paid directly from the settlement funds before the remaining balance is placed into the protected account for the child.
Contact Neale & Fhima for Help with a Child Injury Settlement
The California Minor’s Compromise process is a necessary safeguard, but it adds a layer of legal complexity to an already stressful situation.
Parents are focused on their child’s recovery, and the thought of court hearings and legal paperwork can be a lot to handle. A misstep in this process can lead to delays or even the rejection of a settlement.
An experienced personal injury law firm manages this entire process, from negotiating with the insurance company to representing your family in court.
The team at Neale & Fhima will handle the legal details, allowing you to focus on what matters most: your child’s health and well-being. We are committed to protecting your child’s rights and securing their financial future.
Are you ready to secure the most favorable possible outcome for your child’s injury claim? Contact the California personal injury attorneys from Neale & Fhima today for a free consultation to discuss your case and learn how we can help.
Legal Resources For California Parents With Injured Children
Explore these attorney-curated resources for legal insights after an accident involving a child or serious injury in California:
- California’s Statute of Limitations: Don’t Miss Your Chance to File a Personal Injury Claim
- Medical Records in California Personal Injury Claims
- The Role of Mediation in California Personal Injury Claims
For personal legal support and guidance, contact Neale & Fhima to schedule a free consultation and discuss your situation.
Attorney Aaron Fhima
Aaron Fhima is a trial attorney who has secured numerous settlements and verdicts against large corporations and some of the largest auto manufacturers in the world. Representing consumers and injury victims throughout the state of California, Aaron’s practice areas include personal injury, and lemon law litigation. Aaron has a long record of success taking on large defense firms; and he doesn’t hesitate to take cases to trial when necessary to enforce his clients’ rights. [ Attorney Bio ]
