Detailed answer

This answer explains the usual steps Hawaii courts follow when a person under 18 (a minor) receives a personal injury settlement and a judge must approve the agreement. The process protects the minor’s legal and financial interests. This is a general explanation only and not legal advice.

1) Who should you involve first?

Start by consulting a personal injury attorney who has handled cases for minors. An attorney can help value the claim, negotiate a fair dollar amount, and prepare the court papers required to get judicial approval. If no attorney represents the minor, the court often appoints a guardian ad litem (GAL) to protect the minor’s interests.

2) How does the settlement get documented?

When the parties reach a settlement, the parties (or the plaintiff’s attorney) prepare a settlement agreement and a proposed order asking the court to approve the compromise for the minor. The papers should include the full settlement terms, any liens or medical subrogation, and an itemized statement of attorney fees and costs the lawyer will take from the recovery.

3) What must be filed with the court?

Typically the following are filed with the court that has jurisdiction over the case (often the civil circuit court where the suit is pending):

• A petition or motion to approve compromise of the minor’s claim.
• The executed settlement agreement or stipulation to dismiss with prejudice, if applicable.
• A proposed court order for approval that explains how the settlement funds should be protected and distributed.
• Documentation of medical bills, liens, and any other attachments showing how the gross settlement divides into attorney fees, liens, costs, and the net to the minor.
• If a guardian ad litem or conservator is involved, the GAL’s written recommendation or report.

4) Will the court appoint a guardian ad litem or conservator?

The court commonly appoints a guardian ad litem (GAL) to investigate the fairness of the deal. The GAL interviews the minor and the parents (or guardian), evaluates the net amount the minor will receive, and submits a recommendation to the judge. In some cases the court may require a formal guardianship or conservatorship under Hawaii guardianship statutes if long-term management of funds is needed. See Hawaii Revised Statutes on guardianship for guidance (court-controlled protective arrangements are governed by state guardianship law).

For general reference to Hawaii statutes and court resources, see the Hawaii State Legislature and Hawaii State Judiciary websites:

• Hawaii Revised Statutes (general): https://www.capitol.hawaii.gov/hrscurrent
• Hawaii State Judiciary (forms and process information): https://www.courts.state.hi.us/

5) What happens at the court hearing?

The judge reviews the settlement’s fairness and the requested distribution of funds. The judge will consider:

• Whether the settlement amount fairly compensates the minor for the injuries and future needs.
• Whether attorney fees and costs are reasonable and properly documented.
• Whether liens (medical or government) are satisfied or reasonably resolved.
• Whether the plan for protecting the minor’s money (blocked account, guardianship, annuity/structured settlement) is in the minor’s best interest.

The judge may approve the settlement as-is, approve with conditions, or require changes (for example, a different method of protecting funds or a smaller fee award).

6) How will the money be handled after approval?

Common court-approved options:

• Blocked or restricted bank account (funds held until the minor reaches 18 or a later age set by the court).
• Court-ordered guardianship/conservatorship with periodic accounting to the court.
• Structured settlement/annuity that pays the minor over time while protecting principal.
• Immediate lump-sum to a guardian, if the judge finds it appropriate and documents protection of the minor’s interests.

7) How long does the process take?

Times vary. Preparing the petition and supporting materials typically takes a few weeks. Scheduling a hearing can take several weeks to a few months, depending on the court’s calendar. If the court requests additional information or a different protection plan for the funds, that can add time.

8) Do attorney fees need court approval?

Yes. When fees come out of the minor’s recovery, the court must evaluate reasonableness. The judge can reduce excessive fees. The petition should show the attorney’s fee agreement and detailed billing, and explain why the fee is reasonable for the work done and the result obtained for the minor.

9) What if the settlement is paid to a parent or guardian outside court approval?

Payments to parents or guardians without court approval can create legal problems. The court will scrutinize such transactions and may require an accounting, return of funds, or formal guardianship procedures to protect the minor. Always seek court approval before releasing a minor’s settlement funds.

10) Where to find Hawaii-specific rules and forms

Use the Hawaii State Judiciary website for court forms and local rules. For statutory guidance about guardianship and court authority over minors’ claims, consult the Hawaii Revised Statutes through the legislature’s website linked above.

Important: This explanation summarizes common practices under Hawaii law. State courts have discretion and local practice varies. For advice tailored to your case, consult a Hawaii attorney.

Helpful hints

• Hire an attorney experienced with minors’ claims and court approval procedures in Hawaii early in the process.
• Keep complete medical records and bills. The court will want evidence of injury and expenses.
• Document all liens (medical, ERISA, Medicaid) early so the court can see how the settlement divides.
• Ask the attorney to prepare a clear accounting that shows gross settlement, fees, costs, liens, and net amount to the minor.
• Consider structured settlements or annuities if long-term care or guaranteed income would benefit the minor.
• Expect the court to prefer a neutral GAL report when the minor’s interests could conflict with a parent’s or insurer’s interests.
• Don’t accept or distribute funds until the judge signs an approval order protecting the minor’s recovery.
• If you worry about attorney fees, request a detailed fee affidavit and be prepared to ask the court to reduce any unreasonable charge.
• Be aware that the court may require periodic accounting if a guardian or conservator manages the funds.

Disclaimer: This article provides general information about Hawaii procedures for court approval of a minor’s personal injury settlement. It does not provide legal advice, create an attorney-client relationship, or substitute for consulting a licensed attorney in Hawaii. For case-specific advice, contact a Hawaii-licensed lawyer.