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Settling a Child’s Personal Injury Claim in Georgia: When Is Court Approval Required?
When your child has been injured and the insurance company offers a settlement, you may think the case is nearly over. But Georgia law treats settlements involving children differently from settlements involving adults. Before the settlement can be finalized, additional steps may be required to protect your child’s interests.
Depending on the settlement amount and whether a lawsuit has been filed, Georgia law may require court approval, appointment of a conservator, or both.
Why does Georgia require court approval for some settlements?
Children cannot fully protect their own legal interests, so Georgia law establishes safeguards for settlements involving minors. The principal statute is O.C.G.A. § 29-3-3.
A settlement completed in compliance with the statute is final and binding on all parties, including the child. This means the child generally cannot reopen the settlement later simply because the amount turns out to be inadequate.
Because approval can have lasting consequences for the child’s rights, the proposed settlement should be carefully evaluated before it is finalized.
It starts with the numbers: gross vs. net
Two figures determine what procedures are required.
The gross settlement is the present value of all amounts paid or to be paid to settle the child’s claim, including attorney’s fees, litigation expenses, and amounts allocated to structured settlements. It includes amounts paid or to be paid on behalf of all settling parties.
The net settlement is calculated by subtracting attorney’s fees, litigation expenses, and legally enforceable liens payable from the settlement proceeds. Georgia law also permits deductions for the present value of payments the child will receive after reaching adulthood and amounts placed into certain court-approved trusts.
These calculations matter because they determine whether a conservator is required.
Georgia’s threshold is now $25,000. Some older articles still cite $15,000, but the law changed in May 2022.
| Gross settlement | Net settlement | What’s required |
|---|---|---|
| $25,000 or less | Any amount | A natural guardian may settle without court approval or appointment as conservator, subject to applicable statutory requirements. |
| More than $25,000 | $25,000 or less | Court approval is required, but a conservator generally is not required. |
| More than $25,000 | More than $25,000 | Court approval and appointment of a conservator are required. |
A conservator is a person appointed by the probate court to manage a child’s property. Often, the conservator is a parent. Conservators may be subject to bonding, reporting, recordkeeping, and restrictions on how settlement funds are spent.
If the child already has an appointed conservator, only that conservator has authority to compromise the child’s claim.
Which court approves the settlement?
If a lawsuit is pending, the court hearing that lawsuit generally has exclusive jurisdiction to approve the settlement.
If no lawsuit has been filed, the settlement generally must be submitted to the probate court when court approval is required.
When a conservator is necessary, the probate court handles the appointment, even if another court is responsible for approving the settlement.
Special rules apply when a lawsuit has already been dismissed. This is one reason the timing and wording of settlement and dismissal documents are important.
Don’t dismiss the case first
When a minor’s settlement has been submitted to the trial court for approval, the case generally cannot be voluntarily dismissed without an order from that court.
Under O.C.G.A. § 29-3-3(g), the trial court may retain jurisdiction to approve the settlement if the dismissal order specifically provides for it. Otherwise, if the case is no longer pending and jurisdiction was not retained, approval generally must be sought from the probate court.
For that reason, your attorney should coordinate the settlement approval process with any dismissal of the lawsuit.
What does the judge consider?
The court’s primary concern is whether the settlement is in the child’s best interest.
The judge may consider the nature and extent of the injuries, the child’s prognosis, future medical needs, the amount of the settlement, attorney’s fees and expenses, and how the settlement funds will be protected.
Georgia law gives a court handling a pending lawsuit discretion to determine whether a hearing is necessary. If compliance with the statutory requirements is evident from the record, a hearing is not mandatory. Individual courts may nevertheless require additional documents or proceedings before approving the settlement.
Protecting the settlement money
A child’s settlement does not always have to be paid in one lump sum.
Georgia law permits courts to approve structured settlements, trusts, and arrangements that delay some or all payments until the child becomes an adult. Certain deferred-payment arrangements limit distributions before age 18 to $25,000.
A structured settlement may provide payments over time rather than an immediate lump sum. Depending on how the arrangement is structured, payments deferred until adulthood may reduce the net settlement calculation and potentially eliminate the need for a conservator.
The right approach depends on the child’s injuries, anticipated needs, and the terms of the settlement. Your attorney can explain the available options and help determine which arrangement best protects your child.
What should parents do next?
Before finalizing a settlement, talk with your attorney about your child’s injuries, future medical needs, and the amount being offered.
Ask for a clear breakdown of the gross settlement, attorney’s fees, litigation expenses, liens, and net settlement. Discuss whether court approval or a conservator will be necessary and whether a trust or structured settlement would be appropriate.
You should also understand what documents must be signed, how the settlement funds will be protected, and when the settlement can be completed.
We’re here to help
The Hamilton Firm has helped Georgia families navigate the settlement process for injured children, from negotiation through court approval. We understand that a child’s injury settlement involves more than simply reaching an agreement with an insurance company. It requires protecting the child’s interests today and in the future.
If your child has been injured and you have questions about a pending case or settlement offer, please contact The Hamilton Firm for a free consultation.
Author: Annette Kelley
Disclaimer: This article is for general informational purposes only and is not legal advice. It does not create an attorney-client relationship. Laws and procedures may change, and the application of Georgia law depends on the facts of each case. Past results do not guarantee a similar outcome.