How Are Minor Settlement Claims Managed in Florida Courts?

Panter, Panter & Sampedro handles many case types for families, and some involve a child injured by another party’s negligence. Florida courts apply special rules to protect a child in a minor settlement, and those rules depend on the amount of the settlement.

Court Approval Rules for Minor Settlement Claims in Florida 

Florida law requires court approval when a settlement involving a child exceeds $15,000, under Fla. Stat. 744.387 and Florida’s guardianship rules. Any settlement that benefits a child with a gross amount of $50,000 or more requires court approval, regardless of the net amount the child receives, under Fla. Stat. 744.3025.

When a minor settlement reaches the $50,000 threshold, the court requires a guardian ad litem, or court-appointed representative, to confirm that the payments are received and managed in the best interest of the child. This representative may be a legal guardian if the court finds no conflict of interest.

A settlement can be voided if a party does not follow these statutes and probate rules. A notable example is Allen v. Montalvan, 201 So. 3d 705 (Fla. 4th DCA 2016), where the Fourth District Court of Appeal addressed a minor settlement that did not follow the required process.

Court approval may or may not be necessary when the settlement is less than $50,000. Here is an overview of the rules in Florida: Minor Settlements Flow Chart

If a gross settlement does not exceed $15,000:

• Court approval is not required unless civil action is filed
• Legal guardianship is not required
• Guardian ad litem, or court-appointed representative, is not required

If a gross settlement is between $15,000.01 and $49,999.99: 

• Court approval is required
• Legal guardianship is not required if the net settlement to the minor does not exceed $15,000
• Legal guardianship is required if the net settlement to the minor exceeds $15,000
• A court-appointed representative is not required but is within the court’s discretion to decide

If a gross settlement is $50,000 or greater: 

• Court approval is required
• Legal guardianship is required
• A court-appointed representative is required but may be waived by the court if the legal guardian has no conflict of interest

Protecting Minor Settlements Until Adulthood

It is critical to retain an experienced lawyer before settling any minor claims. A lawyer will assist in determining if court approval is required for the minor’s settlement and if a court-appointed guardian is needed.  

After parties reach a settlement in a case involving a child, an attorney may also help families protect the payments in the best interest of the minor involved. Sometimes, the attorney will help families establish a structured settlement or an annuity that the minor may collect from when they are 18 years old or older. In other instances, structured settlements may not be appropriate. Every case is different and a lawyer can help determine the best course of action. 

At Panter, Panter & Sampedro, the firm work to protect its clients and their settlement funds for future expenses. Contact the firm for a free consultation at 305-662-6178.

Sources: 

Florida Probate Law Group (2019, November 8). Lessons in Global Settlements involving Minors. Retrieved from: https://floridaprobatelawgroup.com/2019/11/08/lessons-in-global-settlements-involving-minors/