Detailed Answer
Short answer: In Maryland, most minor (under-18) personal-injury or other civil claim settlements need court approval, and a court hearing is commonly part of that approval process. The hearing lets the judge confirm the settlement is fair to the minor, that fees and liens are reasonable or resolved, and that the settlement funds will be protected in an appropriate manner for the child’s benefit.
Why a hearing? Maryland courts supervise compromises of claims by minors to protect the child’s financial interests. A judge must evaluate the settlement terms, the reasonableness of attorney fees, and the plan for how the money will be held or distributed. This process reduces the risk that a parent, guardian, or third party will misuse the funds.
Who must attend? Attendance rules vary by county and by judge, but typically one or more of the following must be present in court:
- The minor’s attorney (almost always required).
- The guardian ad litem (GAL), if the court has appointed one to represent the minor’s interests.
- The minor’s parent or legal guardian (sometimes required, often encouraged).
- Representatives of insurance companies or any party required by the court to explain the settlement.
- The minor personally — generally not required for very young children, but older minors (teens) are sometimes asked to appear or to meet with the judge or GAL.
What happens at the hearing?
- The judge will review written documents: the petition to approve the compromise, the settlement agreement, a proposed order, an accounting of medical bills and other liens, and the attorney fee statement.
- The judge may hear short oral statements from the minor’s attorney and the guardian ad litem explaining why the settlement is fair.
- The judge will ask questions aimed at confirming the settlement is in the child’s best interest, that liens (medical providers, Medicare/Medicaid, health insurers, subrogation interests) are addressed, and that attorney fees are reasonable.
- If the judge approves, the court signs an order authorizing payment and directing how funds will be handled (for example, payment into a blocked account, transfer to a special needs trust, or other protective arrangement).
- If the judge has concerns, the court may postpone approval, require changes (for example, allocation to pay liens or reduce fees), or in rare cases reject the proposed settlement.
Can the hearing be waived or handled without an in-person appearance? Some Maryland circuits allow limited paperwork-only review or telephonic appearances in routine matters. Other circuits require an in-court hearing for transparency. Your minor’s attorney will know local practice and can often ask the court to conduct a paper review or allow counsel to appear by phone or video. However, expect that at least one in-court appearance by counsel or the guardian ad litem will be needed.
How long does the hearing take? Most minor-compromise hearings are short—commonly 10 to 30 minutes—unless there are disputes about liens, attorney fees, or the distribution plan. If the settlement is complicated (structured payments, special needs trust, or large liens), the hearing can take longer or require supporting testimony or documentation.
How will funds be protected after approval? Judges typically order one of the following:
- Blocked or restricted bank account requiring court or co-signer authorization for withdrawals.
- Transfer into a trust (for instance, a special needs trust if the child has disabilities).
- Purchase of a structured settlement (periodic payments) arranged with the insurer.
- Use of the Uniform Transfers/Uniform Gifts to Minors Act (UTMA/UGMA) custodial accounts when appropriate under state law.
Where can I read Maryland court rules and guidance? For local procedural rules and the statewide Maryland Rules that govern guardianships and court proceedings, see the Maryland Judiciary resources: https://www.mdcourts.gov/rules. For statutory law and related state code sections, consult the Maryland General Assembly statutes: https://mgaleg.maryland.gov. Your attorney or the court clerk can point to the specific local rules that apply in your circuit.
Practical example (hypothetical)
Suppose a 12-year-old in Montgomery County settles a car-accident personal-injury claim for $75,000. The child’s attorney files a petition to compromise the minor’s claim, lists medical bills ($20,000), and requests $18,000 in attorney fees. The court appoints a guardian ad litem to review the settlement and recommends approval if lien issues are resolved. At the hearing, the judge confirms the settlement is fair, reduces attorney fees if they appear excessive, orders payment into a blocked account accessible for the minor’s needs with court oversight, and signs the approval order. The hearing lasts about 20 minutes.
Helpful Hints
- Hire an attorney experienced with minor-compromise proceedings in your county. Local practice varies; an attorney can prepare the petition and appear where you can avoid personal attendance.
- Ask your attorney to identify and resolve medical liens and subrogation claims before the hearing. Judges want to see how liens will be paid.
- Bring originals or certified copies of settlement papers, lien letters, medical bills, and any prior court orders to the hearing.
- If the minor has disabilities or receives public benefits (Medicaid, SSI), discuss a special needs trust or structured settlement with counsel to avoid losing benefits.
- Expect the court to scrutinize attorney fees. Be prepared to explain the fee percentage and the work performed, or negotiate fees ahead of the hearing.
- Contact the circuit court clerk’s office early to confirm whether the judge requires an in-person appearance, allows telephonic appearance, and for any local filing requirements.
- Plan for time: even brief hearings can be delayed. Bring documents and be prepared to answer basic questions about who will control the funds and how the minor will benefit.
- Keep a copy of the court’s signed order approving the settlement. Banks and trustees will often require it before releasing funds.
Disclaimer: This article explains general information about Maryland processes for settlements involving minors. It is not legal advice. Laws and local court procedures change. Consult a licensed Maryland attorney about your specific situation before relying on this information.