Settling a Child's Injury Claim in California

Your child was hurt in a crash, a dog bite, or a fall, and the insurance company has made an offer. You are the parent, so it seems like you should be able to sign the release and deposit the check. In California you cannot, at least not on your own.

Any settlement of a minor's injury claim has to be approved by a judge before it is binding. This post explains how that process works, what the court looks at, where the money ends up, and the mistakes that slow it down.

Why your signature alone is not enough

California treats a child's claim as belonging to the child, not the parent. The law lets a parent act for the child, but only with a court watching.

Probate Code § 3500 gives a parent the right to compromise a minor's disputed claim when no lawsuit has been filed. If the parents live together, either one can do it. If they live apart, it is the parent who has care, custody, or control of the child. Then comes the condition that matters: the compromise "is valid only after it has been approved, upon the filing of a petition, by the superior court."

If a lawsuit is already on file, Code of Civil Procedure § 372 covers the same ground. The child appears through a guardian ad litem, usually a parent, who can settle only "with the approval of the court."

This protects your child, and the insurer has its own reason to want it: a compromise the court never approved is not valid under § 3500. If an adjuster suggests you can skip the process, be skeptical of everything else they tell you.

When the parent is the one being sued

Section 3500 has an exception that catches families off guard. A parent cannot compromise the child's claim if the claim is against that parent.

Picture it: your child was a passenger in your car, the crash was partly your fault, and the claim runs against your own liability coverage. Or it was your own dog that bit your child. In those cases the court will want someone without a conflict, typically a guardian ad litem, speaking for the child. Raise it early, because it changes who signs the petition.

What the petition has to show

The request goes on a Judicial Council form, the Petition for Approval of Compromise of Claim or Action or Disposition of Proceeds of Judgment for Minor or Person With a Disability (form MC-350). Rule 7.950 of the California Rules of Court requires it to be verified, meaning signed under penalty of perjury, and to contain "a full disclosure of all information that has any bearing upon the reasonableness of the compromise."

In practice the judge wants to see:

• What happened and how fault was assessed.
• The child's injuries, treatment, and current condition.
• The total settlement and the insurance limits it came from.
• Every medical bill and lien to be paid out of it.
• The attorney's fee and costs, with the fee agreement attached.
• Exactly where the child's net share will be held.

That last item is not a formality. Under Probate Code § 3601, attorney's fees, medical expenses, costs, and any reimbursement to a parent are paid from the child's money only "as the court shall approve and allow." The judge can cut a fee or question a bill. This is one place where the system is built to second-guess the deal, so a lowball offer that might slip through in an adult's case has to survive a judge here. Our post on why the first settlement offer is almost always a lowball explains the pattern the court is watching for.

Hearing or expedited approval

There are two tracks.

Expedited approval under rule 7.950.5 is for simpler cases, and it uses its own form (MC-350EX). To qualify, a petition has to meet every one of a list of conditions, including that the total payable under the settlement is $50,000 or less (with a narrow exception for policy-limits settlements), that the child is represented by an attorney, that no wrongful death claim is involved, that no trust is being created, and that there is no unresolved lien dispute. The court must decide an expedited petition within 35 days of filing.

A regular hearing applies to everything else. Rule 7.952 says the parent filing the petition and the child "must attend the hearing on the petition unless the court for good cause dispenses with their personal appearance." Local practice varies by county. In San Diego, for example, the superior court says non-expedited petitions are scheduled for hearing within 30 days of filing. Check your own county's procedures before you assume.

Where the money goes

Most parents expect a check. Usually there isn't one, at least not to them.

Probate Code § 3611 lists what the court may order. The common options:

• A blocked account. The money goes into an insured account at a California financial institution, "subject to withdrawal only upon the authorization of the court." The bank will not release it to you without an order.
• A single-premium deferred annuity, which can pay out on a schedule set years in advance.
• A trust created or approved in the order. If the minor's money goes into a trust under this option, it must be revocable by the child upon turning 18.
• Small amounts to a parent. If the money is $5,000 or less, the court may let it be paid to a parent, without bond.
• A custodian under the California Uniform Transfers to Minors Act, or a special needs trust for a child who needs one.

One timing detail: § 3500 says that if the court orders the money into an insured account or annuity, the release "is not effective for any purpose until the money has been deposited as directed." The bank deposit is part of closing the case, not an afterthought.

Once your child turns 18, the money is theirs. The San Diego court notes that a minor may withdraw funds upon reaching majority, following the department's instructions. Before then, taking money out early, even for something like uninsured therapy, requires a court order.

What this means in California

The approval process works alongside the deadlines, and the deadlines for a child are different from an adult's.

Against a private party, the two-year personal injury limit in CCP § 335.1 usually does not start until the child turns 18, because CCP § 352 excludes the time a person is a minor. That tolling does not apply to claims against public entities. A school district, city, or transit agency generally still requires a government claim within six months. Government Code § 911.6 gives some relief for a minor who missed that window, but a late-claim application still has to be filed and is subject to strict outer limits. Our post on a child hit by a car in a school zone covers those deadlines in more detail.

California's pure comparative negligence rule applies to children too. If the insurer argues your child was partly at fault, that reduces the recovery rather than eliminating it, and the petition should explain how that argument shaped the number.

Practical next steps

Do not sign anything labeled "release" for your child, and do not cash a check made out to them, until a court order says how the money is handled. Keep every medical bill, explanation of benefits, and lien notice in one folder, because the petition has to account for all of them. Ask your child's doctor for a short written update on recovery and anything expected in the future, since the petition has to describe your child's condition. If you want help working out whether an offer will hold up in front of a judge, a consultation with our firm is free and there is no fee unless there is a recovery.