Detailed Answer
When a minor receives or is to receive money from a legal claim (for example, a personal injury settlement, wrongful death portion, or insurance payment), North Dakota courts typically oversee the compromise of the minor’s claim to protect the child’s interests. The court often appoints a guardian ad litem (GAL) to investigate the situation and advise the court whether the proposed settlement is fair, reasonable, and in the minor’s best interests.
Which cases trigger a guardian ad litem review?
Court supervision and appointment of a GAL commonly occur when a minor is a plaintiff in civil litigation or a minor’s claim is being compromised before final judgment. The court has discretion to require a GAL whenever it believes a neutral, court-appointed representative is needed to protect the minor’s legal or financial interests.
Who can serve as guardian ad litem?
In North Dakota the court may appoint an attorney or another appropriate adult to serve as GAL. The person must be able to represent the minor’s best interests and must be free of conflicts that would prevent impartial representation. The court decides the GAL’s qualifications and scope of duties.
Step‑by‑step process (typical)
- Filing the petition: The party seeking approval of the minor’s settlement files a petition with the district court (often called a petition to approve compromise of a minor’s claim or petition to approve settlement). The petition includes the settlement agreement, proposed distribution of proceeds, and supporting documents such as medical records and lien information.
- Notice to interested parties: The court requires notice to the minor’s parents or legal guardian, opposing parties, and any lienholders (medical providers, insurers). The court’s local rules or judge’s procedures specify how much notice and to whom.
- Appointment of GAL: If the court determines a GAL is necessary (or if a party requests one), the court issues an order appointing a guardian ad litem. The appointment order sets the GAL’s duties, deadlines, and whether the GAL may hire experts or counsel.
- Investigation and report: The GAL investigates the claim: reviews medical and billing records, settlement terms, any liens, and the proposed distribution of funds. The GAL interviews the child (when appropriate), parents, treating providers, and counsel. The GAL then files a written report and recommendation with the court and may provide copies to counsel.
- Hearing: The court schedules a hearing on the petition. The GAL presents findings and recommends whether the court should approve the settlement as is, approve with modifications (for example, setting aside funds or appointing a conservator), or reject it.
- Court approval and protective orders: If the court approves the settlement, it issues an order authorizing the compromise and directing distribution. The court may order protective measures such as: funds placed in a blocked (minor’s) account at a bank, appointment of a conservator or guardian to manage funds, purchase of an annuity or structured settlement, or establishment of a trust for future care.
- Distribution and closure: After compliance with the court’s order (e.g., placing funds in the manner ordered and satisfying liens), the court signs a final order closing the matter as to the minor’s claim.
Common court powers and protections
- The court can require a bond if it later appoints a guardian or conservator to manage funds.
- The court can approve partial distributions for medical expenses and place the remainder under court supervision.
- The court can approve a structured settlement (annuity) or blocked bank account to limit immediate access to large sums.
Documents the court usually wants
- Petition to approve minor’s compromise/settlement
- Copy of the proposed settlement agreement and release
- Billing statements, medical records, and lien information
- Affidavit of the minor’s parents or guardian (if applicable)
- GAL report and recommendation
- Proposed order approving settlement and directing distribution
Timing and cost considerations
The GAL’s investigation and report typically add several weeks to the settlement timeline. The GAL may charge fees for time spent investigating and attending hearings; the court will determine whether the fees come from the settlement proceeds or are paid by another party. Budget for GAL fees, court costs, and possible conservatorship expenses when planning a settlement.
Statutory and local authority
North Dakota courts supervise compromises for minors under the state’s laws governing guardianships, conservatorships, and court supervision of minor’s claims. For general access to the North Dakota Century Code, see the Legislature’s code repository: https://www.legis.nd.gov/cencode. For local court practice, judges’ procedures, and rules affecting hearings and appointments, see the North Dakota Courts resources: https://www.ndcourts.gov/legal-resources/codes-and-rules.
Hypothetical example: A 10-year-old injured in a car crash has a $100,000 liability settlement proposed by the insurer. The parents agree to the deal, but the judge orders a GAL because the parents receive public benefits and concerns exist about future care. The court appoints an attorney GAL, the GAL reviews medical records and liens, reports that the settlement is reasonable but recommends $30,000 be placed in a blocked account for education and $65,000 be placed in a custodial trust for long‑term care. The court approves the compromise and issues an order requiring the bank to hold the funds and limiting withdrawals without further court approval.
Disclaimer: This article explains general North Dakota procedures and is for educational purposes only. It does not provide legal advice. For advice about a specific case, consult a licensed North Dakota attorney.
Helpful Hints
- Start early: expect additional time when a GAL or court approval is required.
- Prepare thorough documentation: medical records, billing, and lien estimates help the GAL and the court evaluate fairness.
- Anticipate protective measures: courts frequently require blocked accounts, trusts, or conservatorships for large settlements.
- Confirm notice requirements with local court clerks: different districts may have procedural preferences or local forms.
- Ask about GAL fees up front: clarify whether fees will be paid from settlement proceeds and whether you can challenge unreasonable fees.
- Consider structured settlements or annuities when long-term care or future needs are a concern—these can be tax-advantageous and prevent immediate depletion of funds.
- Get counsel: even when a parent seems cooperative, a GAL’s neutral review protects the child and helps ensure court approval.
- Use official resources: North Dakota Century Code (https://www.legis.nd.gov/cencode) and North Dakota Courts (https://www.ndcourts.gov/legal-resources/codes-and-rules) for statutory and procedural guidance.