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Giving Children the Justice They Deserve – Personal Injury Settlements For Children

A car accident is every parent’s worst fear. If you have received that dreaded phone call, then you are probably thankful that your child is still alive. It could be worse. Hopefully, your child has only sustained temporary injuries. If you are the parent of a child who is injured in a car accident, then you probably have questions about settling the personal injury claim.

I am here to answer those questions. First a little about myself, I frequently serve as a Guardian ad Litem for children who have been injured in car accidents. Basically, this means that I am appointed by Madison County judges to help the judge decide whether the settlement is in the best interest of the child.

I have also personally represented dozens of children who were injured in car accidents, including a $4.35 million settlement for a teenage boy.

Dealing with the insurance company after a car accident

After a car accident, it does not take long for the insurance company to start calling. They will want to know how your child is doing, what the doctors have said, etc.

Dealing with any insurance company is daunting. When the claim involves your child’s injuries, the process becomes more complicated.

There are many steps involved in settling a personal injury claim for a child. The settlement must be approved by a judge, the health insurance provider(s) will have to be paid back, and the settlement proceeds are held by the Circuit Court Clerk’s Office until the child turns 19 years old.  

The process to settle a personal injury claim for a child

Reaching an agreement with an insurance company is basically the same whether you are settling the claim for yourself or your child. For general tips, check out our previous article- Tips for Settling Your Personal Injury Case.

However, after an agreement is reached, the process changes. Here is the step-by-step process of finalizing personal injury settlements for children:

  1.       Insurance lawyer files lawsuit on behalf of child.
  2.       Judge assigns a local lawyer as Guardian ad Litem.
  3.       Guardian ad Litem meets with parent and child.
  4.       Guardian ad Litem prepares a report for the judge.
  5.       Pro ami hearing is held with questioning from the judge and lawyers.
  6.       Judge determines whether settlement is in the child’s best interests.
  7.       Insurance lawyer sends the settlement check to the clerk’s office.
  8.       Settlement funds are held until the child is 19 years old.

If you were to settle your own case, you would simply sign a release agreement with the insurance company and then they mail a check to you, minus any funds that are paid directly to hospitals or health insurance providers.

Under Alabama law, settlements for minors must be approved by a judge. That means that a lawsuit must be filed anytime there is a settlement for a minor. If you don’t have an attorney, the insurance company will hire a lawyer to draft and file the lawsuit. Next, a judge is assigned to the case, and the judge appoints a local attorney to serve as the child’s Guardian ad Litem.

As I mentioned earlier, I serve as Guardian ad Litem for several cases every year. A Guardian ad Litem has a duty to meet with the parent and child to determine whether the settlement is in the child’s best interest. The Guardian ad Litem then prepares a report for the judge. This report addresses the nature of the accident, extent of child’s injuries, availability of insurance coverage, the lawyer’s legal fee, and the breakdown of the settlement.

Next, a hearing is scheduled. The hearing is called a Pro Ami hearing. The parent and child each attend, as well as the child’s lawyer, insurance lawyer, and the Guardian ad Litem. The judge and lawyers ask questions to the parent and child. The purpose of the hearing is to make sure the settlement is in the child’s best interest and that the parent and child understand the finality of the settlement. Keep in mind, the judge isn’t making a decision regarding whether the settlement is fair or not. That is not his job.

If the judge determines that the settlement is in the child’s best interest, then an order is issued and the settlement funds are placed with the Circuit Court Clerk’s Office. The funds draw a small amount of interest, based on the current rate of return for bank money market accounts.

The money is available in the event of an unexpected expense that is incurred on the child’s behalf. The judge has the discretion to determine whether the funds can be withdrawn before the child’s 19th birthday. Upon the child turning 19 and becoming an adult, the funds are released directly to the child.

Conclusion Of Personal Injury Settlements For Children

Settling a case for a child is more complex than settling a case for a minor. There are quite a few steps involved. As a concerned parent, you will benefit from a consultation with an experienced personal injury lawyer.

Call or text me at 256-539-8686 for a free, no-pressure consultation. I can provide advice via phone call, video call, or in-person. Whatever is most convenient for you.

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