Court approval process for a minor’s personal injury settlement in Rhode Island

This FAQ-style article explains, in plain language, the typical steps courts follow in Rhode Island when approving a personal injury settlement for a minor. It is written for people with no legal background. This is general information only and not legal advice; consult a licensed Rhode Island attorney for advice about a specific case.

Detailed answer — step-by-step process

1. Retain an attorney experienced with minor settlements

   An attorney who handles personal injury claims involving minors will evaluate the claim, estimate damages, identify medical and government liens (for example, Medicaid), and negotiate with insurers. The attorney will also prepare the documents needed to ask a court to approve the settlement. You are not required to hire counsel, but the court will review attorney fees and the settlement’s fairness closely.

2. Negotiate and document the settlement terms

   Once the insurer or defendant offers a settlement, the parties document the agreement in writing: gross settlement amount, how medical bills and liens are handled, attorney fee percentage or amount, and proposed distribution (lump sum, structured settlement, trust, or custodial account). Keep precise records of all medical expenses, future care estimates, and other damages to show the court why the settlement is reasonable.

3. Prepare a petition for court approval

   The attorney files a petition (sometimes called a motion or petition to approve settlement on behalf of a minor) in the court that has jurisdiction over the underlying claim—usually the Rhode Island Superior Court for civil personal injury cases. The petition typically includes:

   • a copy of the settlement agreement;
   • a statement of the gross and net amounts, and an itemized list of attorney fees, costs, and liens;
   • an explanation of why the settlement is fair and in the minor’s best interest;
   • evidence of the minor’s injuries, treatment, and future needs;
   • the identity of the minor’s parents or legal guardian and their consent; and
   • a proposed order specifying how the funds should be held or disbursed (for example, a blocked account, trust, or annuity).
4. Appointment of a guardian ad litem or court reviewer (if required)

   If the court believes the parent or guardian may have a conflict of interest, or if the facts require independent review, the judge can appoint a guardian ad litem (GAL) to represent the minor’s interests at the approval hearing. If the minor has no conflict and parents consent, the court may still want independent confirmation that the settlement is fair.

5. Provide notice and set a hearing

   The court usually requires notice of the petition and hearing to interested parties (parents, guardians, insurer, lien holders). The court schedules a hearing where a judge will review the petition, ask questions if needed, and hear objections. Some routine approvals proceed with documentary review only; others require a live hearing.

6. Judicial review and approval

   The judge evaluates whether the settlement is fair, reasonable, and in the minor’s best interest. The judge typically examines:

   • whether attorney fees and costs are reasonable for the services provided;
   • whether medical liens and subrogation claims are identified and addressed;
   • how the net funds will be managed for the minor’s benefit (immediate payout vs. restricted account or annuity); and
   • any special needs or future expenses requiring protection of funds.

   If the judge approves, the court enters an order authorizing the settlement and directing how funds should be handled and disbursed.

7. Placement of funds per court order

   The court will often require one of these protective measures for the net settlement funds:

   • placement in a blocked or custodial bank account requiring court permission to withdraw funds;
   • creation of a trust for the minor, sometimes with a professional trustee;
   • purchase of a structured settlement annuity that pays over time; or
   • transfer to a custodial account under state custodial laws (for minors) if appropriate.

   The judge’s order will set conditions for distributions (for education, medical care, or other needs) and the age or conditions under which the minor will receive the remaining funds.

8. Resolve liens and tax or government claims

   Before distribution, the attorney must address any outstanding liens (medical providers, Medicaid, ERISA plans, Medicare) or child-support arrears. These claims can reduce the net amount available. The court will expect clear accounting showing how liens were paid or reserved for, and may require the parties to obtain lien waivers or court approval of lien resolutions.

What the Rhode Island court will look for

• Documentation that the settlement is in the minor’s best interest.
• Full disclosure of attorney fees, costs, and how the net proceeds will be used or protected.
• Resolution or plan for outstanding liens or government claims.
• Appropriate safeguards for future needs—blocked account, trust, or structured settlement.
• Proper notice to interested parties and opportunity to object.

Common complications to anticipate

• Disagreement between parents/guardians about accepting a settlement — may prompt a guardian ad litem appointment.
• Large government or private liens (Medicaid, ERISA) that significantly reduce the net recovery.
• Disputes over reasonable attorney fees — the court will scrutinize contingency fee percentages and billed time.
• Needs-based public benefits that could be affected by a lump-sum distribution.
• Need for a structured settlement or long-term trust for ongoing medical needs.

Practical timeline and costs

Timelines vary. Preparing a petition and getting a hearing date often takes weeks to a few months after agreement. Resolving liens or negotiating structured settlements can extend the process. Expect court fees, possible guardian ad litem fees, trustee setup fees, and attorney fees (which the court must approve as reasonable).

Where to find Rhode Island statutes and court resources

Rhode Island statutes and court rules that govern civil procedure, fiduciary duties, and probate/custodial arrangements are available on the Rhode Island General Assembly and Rhode Island Judiciary websites:

• Rhode Island General Laws: https://www.rilegislature.gov/Statutes/
• Rhode Island Judiciary: https://www.courts.ri.gov/

Because specific statutory citations or procedural rules may vary with the facts, check those sites or ask a Rhode Island lawyer to point you to the exact statutes and court rules that apply to your situation.

Helpful hints

• Do not sign a final release for a minor without court approval. A settlement that bypasses court approval can later be challenged.
• Ask the attorney to prepare an itemized calculation showing gross recovery, attorney fees, lien payments, costs, and the net amount the minor will receive.
• Consider structured settlements or trusts for large recoveries or ongoing medical needs; they often protect benefits and provide steady income.
• Notify any public benefit providers (Medicaid) early to determine how the settlement affects eligibility and to negotiate lien amounts.
• Keep clear medical and billing records to support future needs claims the court will review when approving the settlement.
• If parents disagree about the settlement, ask the attorney about requesting a guardian ad litem so a neutral party can represent the child’s interests to the court.

Disclaimer: This information is educational only and does not constitute legal advice. Laws and court procedures change. For advice about a specific case in Rhode Island, consult a licensed Rhode Island attorney.