Detailed Answer

Overview. In New York, when a lawsuit or claim involves a minor (an individual under age 18), courts will take steps to protect the minor’s interests before approving any settlement. If the court determines the minor needs independent representation for the purpose of evaluating or approving a settlement, it will appoint a guardian ad litem (GAL) or similar fiduciary to represent the minor’s interests in that proceeding. The guardian ad litem evaluates the settlement, investigates facts, and makes a recommendation to the court whether the proposed compromise is fair, reasonable, and in the minor’s best interests.

Statutory authority

The procedure for appointing a guardian ad litem in civil matters is governed by the New York Civil Practice Law & Rules (CPLR). See CPLR §1201 and following sections for rules on appearance and representation for infants and incapacitated persons. You can read the law here: CPLR § 1201 and related sections at the New York State Senate website: https://www.nysenate.gov/legislation/laws/CPLR.

When will a GAL be appointed?

A GAL is commonly appointed when any of the following apply:

• A parent or ordinary guardian has a conflict of interest (for example, parent is a defendant or has interests adverse to the child).
• The court has reason to doubt whether the settlement protects the minor’s best interests.
• The case involves complicated medical or financial issues (large awards, lifelong care needs, structured settlements, or long-term trust administration).
• A proposed distribution or attorney fee is substantial or unusual and needs independent review.

Typical step-by-step process

1. Initial filing and notice: The plaintiff’s lawyer (or “next friend” such as a parent or guardian) files the action or settlement application. The court requires submission of the proposed settlement papers, medical records, billing, and a proposed order to show cause or stipulation seeking approval. Courts require notice to interested parties and sometimes to the child depending on age/maturity.
2. Application for appointment / court review: If the court believes independent representation is necessary, it will either appoint a GAL on its own or after a party asks for one. The application or order should explain why independent representation is needed and include any suggested nominee.
3. Selection of the guardian ad litem: A GAL may be an attorney appointed by the court or a neutral fiduciary (in some cases a bank or trust company) qualified to represent the child’s interests. The court has broad discretion to appoint who it believes will best protect the minor. CPLR provisions authorize courts to appoint a person to appear on behalf of infants and incompetent persons; see CPLR § 1201.
4. Investigation and report: After appointment, the GAL reviews the medical records, settlement terms, billing records, reports from treating providers, interviews parents/guardians and sometimes the child, and may consult experts. The GAL files a written report or makes an in-court recommendation describing whether the settlement is fair, whether attorney’s fees are reasonable, and how funds should be protected.
5. Hearing and court decision: The court holds a hearing (sometimes called a fairness hearing). The GAL presents findings and recommendation. The court evaluates the totality of circumstances and decides whether to approve the settlement, modify terms, require a different fee arrangement, or require alternative protections for the minor’s funds.
6. Protecting the settlement funds: If the court approves the settlement, it often imposes conditions to secure funds for the minor’s future needs. Typical protections include entry of an order directing funds to a blocked account, a restricted (minor’s) trust, purchase of an annuity or structured settlement, or appointment of a fiduciary under Surrogate’s Court or other court supervision. The court will also review and approve attorney fee applications before allowing distribution.
7. Final accounting or supervision: Depending on the method chosen to protect funds, the court may retain jurisdiction to supervise the fiduciary or require periodic accountings—particularly where the court appoints a guardian or trustee under separate statutory schemes.

What the court expects the GAL to do

• Independently investigate the case facts and medical records.
• Assess the minor’s short- and long-term needs and whether the settlement will meet those needs.
• Evaluate attorney fees and costs to ensure they are reasonable under CPLR standards.
• Advise the court whether to approve the settlement as presented, approve with modifications, or reject it.

Typical timeline and costs

Timelines vary. Small, uncontested settlements with routine facts may be approved in a few weeks. Complex cases with disputes, large awards, or long-term care issues may take months. The GAL’s fees are typically paid from the settlement proceeds but must be reasonable and often require court approval.

Practical example (hypothetical)

Imagine a 10-year-old injured in a car accident. Parents file a claim and negotiate a $200,000 settlement. Because one parent was a passenger in the subject car and there are questions about future care costs, the parties ask the court to appoint a GAL. The court appoints an attorney GAL, who reviews medicals, interviews treating doctors, and recommends approval of $150,000 to the child with $30,000 to pay medical liens and $20,000 to a blocked account for future needs. The court holds a short hearing, approves the allocation, approves the attorney’s 25% fee after reducing where appropriate, and orders the funds placed in a restricted account supervised by the bank until the child turns 18 or further court order. The GAL’s expenses are paid from the settlement with court approval.

Relevant statutory citations

Primary civil procedure guidance is found in the Civil Practice Law & Rules. See for example:

• CPLR § 1201 (appearance for infants and incompetent persons)
• CPLR — full text and related sections

When to talk to an attorney

If you are the parent, guardian, next friend, or attorney involved in a minor’s claim, consult an attorney familiar with New York practice for infant settlements and guardian ad litem procedures. An attorney can help prepare the application, propose appropriate protective mechanisms for settlement funds, and represent the minor’s guardian or next friend when necessary.

Disclaimer

This article is educational only. It does not provide legal advice and does not create an attorney-client relationship. For advice about a specific situation, contact a licensed attorney in New York.

Helpful Hints

• Start documentation early: collect medical records, billing, and expert reports to speed the GAL review and court approval.
• Be transparent about liens and subrogation—courts expect full disclosure of all claims against settlement proceeds.
• Expect a reasonableness review of attorney fees; prepare time records and fee justifications for court review.
• Consider structured settlements or blocked accounts for long-term needs; courts often prefer these to a lump-sum distribution to a minor.
• If there is a potential conflict of interest (e.g., parent is defendant or insurer disputes caregiver needs), proactively request a GAL to avoid delay or challenges later.
• Keep communications clear: the court needs a proposed order, supporting affidavits, and a draft distribution plan before scheduling a fairness hearing.