Detailed Answer
Short answer: In New Jersey, most settlements that resolve a minor’s personal-injury, wrongful-death, or other claim that belongs to the child require court approval. The court typically schedules a hearing to review the proposed settlement. Parents or guardians and the minor’s attorney usually attend; the minor sometimes must attend depending on age and the judge’s preference. The judge will confirm the settlement is fair, that attorney fees are reasonable, and that the child’s money will be protected.
Why the court reviews minor settlements
The court protects minors because children generally cannot legally manage or fully understand the effect of a settlement that disposes of their legal rights or gives them money. A hearing lets a judge confirm the settlement serves the child’s best interests, prevents improper diversion of funds, and ensures fees and costs are appropriate.
Who usually has to appear
- Parent(s) or legal guardian who will sign release documents.
- The minor’s attorney (if the minor has counsel).
- The defendant’s representative or defense counsel may appear but often do not need to be present in person for approval hearings.
- The minor may be required to appear if the judge thinks the child’s ability to understand the settlement is relevant (older minors are more likely to be asked to attend).
- The court may appoint a guardian ad litem (GAL) or independent attorney to represent the child’s interests; that person normally attends.
What happens at the hearing
- The court clerk calls the matter and confirms parties are present.
- The judge or judicial officer will ask the child’s attorney (or the parent if the child is unrepresented) to describe the case, the settlement terms, the reasons for settling, and how the settlement amount is allocated (medical bills, future care, pain and suffering, attorney fees, etc.).
- The judge will review attorney fee requests and may reduce unreasonable fees. Judges typically require a clear accounting showing net recovery to the child after fees, liens, and costs.
- The judge will ask about how funds will be protected — for example, through a structured settlement (annuity), a blocked account, or a court-supervised trust.
- If the court is satisfied the settlement is fair and the child’s interests are protected, it will enter an order approving the settlement and directing disbursement consistent with the order.
How long the hearing takes
Most routine minor settlement approval hearings last 10–30 minutes. Complex cases (large recoveries, disputes about fees, or issues about long-term care) can take longer or require a separate hearing.
Common court orders and protections
- Approval of settlement and release of claims.
- Approval of attorney fees and costs (often reduced if excessive).
- Requirement that funds be placed in a blocked account or trust until the minor reaches majority or for a specified period.
- Order directing purchase of a structured settlement (annuity) for future periodic payments.
- Appointment of a guardian or conservator for managing large sums, if necessary.
What if you cannot attend
If a parent/guardian or attorney cannot attend, courts sometimes accept written consent, affidavits, or stipulated orders if the judge is satisfied with the record. However, many judges prefer in-person appearances to ask direct questions. If attendance is impossible, notify the court early and ask your attorney to request an alternative such as a telephonic appearance or submission of sworn statements.
Costs and timing
Filing fees, costs for a guardian ad litem, and costs to set up a blocked account or structured settlement may apply. Expect scheduling delays in busy counties. Your attorney should estimate timeline and out-of-pocket costs before the hearing.
Where to find official New Jersey guidance
For practical guidance about settling claims for minors in New Jersey and the court’s procedures, see the New Jersey Courts self-help resources on settlements for minors: https://www.njcourts.gov/selfhelp/settlements/minors.html.
Important: This page explains general practice and typical steps. Local court procedures vary across New Jersey counties. Your attorney should confirm the specific requirements for the county and judge handling the case.
Disclaimer
This information is educational only and does not constitute legal advice. Consult a licensed New Jersey attorney about your specific case before relying on this information.
Helpful Hints
- Bring originals or certified copies of settlement documents, medical bills, and releases to the hearing.
- Bring photo ID for the parent or guardian and the attorney’s appearance form or certification if required.
- Ask your attorney in advance whether the minor should attend; older children often testify briefly in open court.
- Discuss protection of funds before the hearing: blocked account, trust, or structured settlement. Have proposed documents ready for the judge to review.
- Request a written estimate of attorney fees and liens before the hearing so the judge gets a clear net recovery figure for the child.
- If a GAL is recommended, know that the GAL will investigate and report to the court; this can add time and cost but helps protect the child’s interests.
- Keep communication with opposing counsel professional and document any agreements about allocation of proceeds or payment of liens.
- If you are unsure what to expect in your county, call the court clerk’s office or ask your attorney to confirm local procedures and typical wait times.