Getting a Court to Approve a Minor’s Personal Injury Settlement — North Dakota

Disclaimer: This is general information and educational only. It is not legal advice. Consult a licensed North Dakota attorney for advice tailored to your situation.

Detailed Answer — Step‑by‑Step Overview

When a person under 18 (a minor) in North Dakota receives a personal injury settlement, the court usually must review and approve the settlement to protect the minor’s interests. The court’s role is to make sure the settlement is fair, costs and fees are reasonable, and the money is handled appropriately for the child’s benefit. Below are the common steps you should expect under North Dakota practice.

1. Hire an attorney experienced with minors’ settlements

Most plaintiffs retain a lawyer to negotiate the settlement and prepare the court paperwork. The attorney will gather medical records, bills, wage-loss documentation, and any other proof of damages. The lawyer will also prepare the petition asking the court to approve the compromise of the claim and to authorize disbursement of settlement funds.

2. Prepare and file a petition to approve the compromise

The attorney (or a guardian/conservator if one already exists) files a petition or motion with the district court asking for judicial approval of the settlement. The petition typically includes:

• Names and ages of the minor and parents/guardians;
• The terms of the settlement agreement;
• An itemized accounting showing gross settlement amount and proposed deductions (medical bills, liens, attorney fees, costs, reimbursement to parents if claimed, etc.);
• Evidentiary support for the claim and the reasonableness of the settlement (medical records, bills, and settlement negotiations summary);
• A proposed plan for handling the net proceeds (immediate distribution, blocked account, trust, or appointment of a conservator/guardian of the estate);
• A request that the court approve attorney fees and costs.

The exact paperwork and caption depend on the local district court and whether a guardianship or conservatorship case is open.

3. Notice and possible appointment of a guardian ad litem

The court often requires notice to the minor (through a guardian) and may appoint a guardian ad litem or other advocate to represent the minor’s best interests if the minor does not already have representation. The guardian ad litem reviews the file and may recommend approval, modification, or rejection of the proposed settlement.

4. Court review of fees, liens, and fairness of the settlement

The judge will examine whether the settlement is fair and whether attorney fees and other deductions are reasonable. Courts typically scrutinize:

• Attorney fees (reasonableness compared to work performed and recovery);
• Medical liens and subrogation claims (whether they are valid and properly credited);
• Any claimed reimbursements to parents or guardians;
• Whether the settlement adequately compensates for pain, treatment, and future needs.

North Dakota’s guardianship and probate statutes govern the court’s authority over a minor’s estate and the appointment of guardians or conservators. For background on guardianship and the court’s authority over a minor’s property, see North Dakota Century Code, Title 30.1 (Guardianship and Conservatorship): https://www.legis.nd.gov/cencode/t30-1

5. Hearing and judge’s order

The court may schedule a hearing. At the hearing the judge can approve the settlement as proposed, approve it with modifications (for example, reducing fees or ordering funds placed in a restricted account), or reject it if the judge believes it’s not in the child’s best interest. If approved, the court issues an order that usually:

• Approves the compromise;
• Authorizes payment of attorney fees and costs;
• Orders how net proceeds are to be handled (distribution to parent/guardian, deposit to blocked account, creation of a trust, or appointment of a conservator);
• Resolves liens or directs how lienholders are to be paid.

6. Handling settlement funds per court order

Common ways courts protect a minor’s money include:

• Blocked (restricted) bank account requiring court approval for withdrawals;
• Establishment of a minor’s trust or structured settlement that pays over time;
• Appointment of a conservator or guardian of the estate to manage funds under court supervision;
• Immediate distribution of a limited amount to parents for the child’s current needs with remainder preserved for future needs.

The court’s order will direct how funds are disbursed and whether future accountings are required.

7. Follow-up accounting and supervision

If a conservator or guardian of the estate is appointed, the court will generally require periodic accountings showing how funds were used. Failure to comply with court-ordered accounting can result in court enforcement actions.

Key North Dakota Authorities and Where to Look

Relevant materials to consult (or ask your lawyer to consult) include:

• North Dakota Century Code — guardianship and conservatorship provisions (Title 30.1): https://www.legis.nd.gov/cencode/t30-1
• Local District Court rules and local forms — many district courts publish probate/guardianship forms and instructions on the North Dakota Courts website: https://www.ndcourts.gov/

Because procedures and required forms vary by county and by whether a guardianship/probate case already exists, confirm local court requirements early in the process.

Helpful Hints

• Start documentation early: Collect medical records, bills, wage-loss statements, and correspondence with insurers before you file the petition.
• Explain future needs: If the injury has long-term consequences, document anticipated future medical care, therapy, or special education to justify the settlement amount.
• Be transparent about liens: Identify Medicaid, health insurer subrogation, or other lien claims in the petition; the court will want to see proper resolution.
• Propose a safe plan for the money: Courts favor options that protect the child’s future needs — e.g., structured settlement, trust, or blocked account — rather than allowing full immediate distribution to a parent.
• Expect scrutiny of attorney fees: Provide detailed billing summaries to support fee requests; the court must find fees reasonable.
• Prepare for timing: Court approval can take weeks to months depending on scheduling, the need for a guardian ad litem, and complexity of liens or estate issues.
• Consider structured settlements: For large awards, structured settlements can provide guaranteed periodic payments and may be viewed favorably by the court.
• Ask about exemptions: Some funds placed for a minor’s benefit may be exempt from creditors under state law — your attorney should advise whether exemptions apply.

When to Talk to an Attorney

If the settlement amount is substantial, there are competing lien claims, or the minor will need long‑term care or special needs planning, consult a North Dakota attorney experienced in minors’ settlements and guardianship issues. An attorney can prepare the petition, negotiate lien reductions, propose appropriate protective arrangements for the funds, and guide you through the hearing and post‑approval accounting requirements.

Again, this document is for informational purposes and not legal advice. For help with a specific case, speak with a licensed attorney in North Dakota who handles personal injury and guardianship matters.