Parents and guardians can negotiate out-of-court settlements for their minors in Nevada regarding personal injury claims. This process, known as a “compromise claim of a minor,” is governed under Nevada Revised Statutes (NRS) 41.200. This article explains what you need to know about this legal process under Nevada law.
What is a Compromise of a Minor’s Claim in Nevada?
Compromising a child’s claim involves settling a financial dispute out of court for a minor under 18. According to NRS 41.200, this agreement is only legally binding if endorsed by the court in a jurisdiction where the child lives outside Nevada, where the lawsuit was initiated.
Examples of disputes that might require a compromise include:
- Compensation for injuries from a car accident in Las Vegas
- Medical bills for brain injuries from playing sports
- Costs associated with replacing parts damaged in a bike accident
- Lost earnings from a job after a slip-and-fall incident
In Nevada, minors are not legally allowed to enter contracts independently. However, Nevada law does make exceptions for specific agreements that are legally binding once approved by the court with proper jurisdiction. This agreement includes out-of-court settlements, known as “compromises,” that involve minors. After settling, typically with the assistance of a skilled personal injury attorney, the appropriate party must make the compromise deal on the child’s behalf.
These agreements can be made by:
- The child’s parents—If both parents stay together, either one can enter into the settlement
- Custodial parents—If parents live separately and custody rights have been granted, only the custodial parent can settle the claim
- A parent residing with the minor—If no formal custody has been decided, the parent who lives with the child can make the agreement
- Estate or general guardian—If appointed, a guardian responsible for the minor’s estate or general guardian can settle on behalf of the child.
In Nevada, the authority to settle a claim on behalf of a minor primarily lies with the parents. If both parents live together, they can negotiate and finalize the settlement. In cases where the parents are separated, this right belongs to the parent. If no custody order exists, the parents with whom the child resides can also decide to settle.
Alternatively, suppose a legal guardian or a guardian of the minor’s estate has been officially appointed. In that case, they have the legal right to enter into a settlement agreement on behalf of the minor. Each scenario ensures that a responsible adult makes decisions that protect the child's best interests when resolving compensation disputes.
The Process for Compromising a Claim for a Minor
After a settlement or court decision has been reached in your case with the help of a personal injury attorney, the compromise involving a minor must receive court approval. You must obtain this approval from the court where the child lives.
If the child does not reside in Nevada, the court's approval must come from the jurisdiction where the crash or incident occurred. This step ensures that the appropriate court reviews and confirms the settlement, safeguarding the minor’s interests and making the agreement legally binding.
The petition should contain:
- The minor’s full name, current address, and age
- A detailed description of the situation that makes the lawsuit a contested request for compensation
- The full names of the accused individuals or entities
- If the lawsuit involves an accident, include the date, location, and key details of the incident
- The full names and addresses of the minor’s parents or legal guardian
- The full name and address of the individual(s) with legal control or physical custody of the minor
- The name, address, and relationship of the minor’s petitioner
- The suggested settlement amount, including how the funds will be divided, such as the portions allocated for attorney fees, medical costs, and other expenses
- A statement detailing whether the expenses and fees will be subtracted during or after the attorney’s contingency fee is calculated
- Confirmation from the petitioner that they believe accepting this settlement is in the minor’s best interest
- A declaration that the minor’s representative understands and agrees that accepting the settlement prevents the child from pursuing further claims against the party offering the settlement
Under Nevada law, the court will schedule an evidentiary hearing to review and approve the settlement agreement. The involved parties and their attorneys must complete these steps to proceed.
What are the Notice Requirements?
Once the judge sets a date for the hearing, they will notify the specific parties. Who qualifies as an interested party can vary depending on the case, but in personal injury matters, it typically includes:
- The person responsible for causing the accident (the tortfeasor).
- The insurance company involved in the claim.
- Any parties with subrogation rights.
- Government agencies that have provided or will provide benefits to the minor.
- The parents of the minor.
- The legal guardian or custodian of the minor.
- Any additional individuals the court orders to attend.
Ensuring proper notice is served to all relevant parties is crucial, but your Las Vegas attorney can handle this task for you.
What to Expect During the Court Hearing
The specifics of how the hearing is conducted can vary depending on the judge, but the court generally reviews evidence related to several key areas, including:
- The details and nature of the case
- The terms of the proposed settlement agreement
- Whether the agreement serves the best interests of the minor
- The future management and use of the settlement funds
Types of Settlements Approved By the Court
Nevada law allows various types of settlement arrangements to be used, such as:
- Conservatorships
- Restricted bank accounts
- Trusts
- Annuities
The chosen settlement structure must align with the best interests of the minor. The court will closely examine the proposed form of payment to determine if it appropriately meets this standard when deciding whether to approve the minor’s settlement.
What to Include in a Petition to Compromise a Claim for a Minor
When seeking court approval for a minor’s claim settlement, the petition must include detailed information and documentation about the claim, especially if it involves a personal injury.
The following essential elements should be provided:
- Injury details—Include details of the minor’s injury, treatment history, prognosis, and recovery progress. This information helps the court assess the severity and impact of the injury
- Medical expenses—Outline the total medical costs incurred up to the filing date, covering all expenses related to treatment and healthcare services
- Paid medical bills—Provide details of medical costs that have already been paid, specifying amounts and payees. This helps clarify the financial obligations already settled
- Outstanding medical costs—List any unpaid medical bills related to the minor’s treatment, highlighting any balances still owed
- Future medical costs—Estimate any future medical expenses that might arise due to the injury, giving the court an understanding of potential ongoing costs
It is also essential to include all relevant medical records and healthcare documents if applicable. These records serve as critical evidence to support the extent of the injury and associated costs.
Once the petition is submitted, the judge will set a date and time for the hearing. During this proceeding, the minor’s representative and the opposing party will present evidence, such as financial documents and contracts, to support or contest the compromise.
After reviewing the evidence and listening to arguments from both sides, the judge will decide whether the settlement is in the child's best interest. If the judge finds the terms acceptable, they will approve the compromise.
The judge will also consider any recommendations or objections from involved parties throughout the hearing. After the hearing, all parties will await the court’s decision, granting or denying the compromise.
A minor does not have the right to appeal the court’s decision. Only an adult involved in the case can file an appeal if dissatisfied with the outcome.
Who Receives the Settlement Money?
If a child’s claim is settled in Nevada and receives court approval, the funds are typically directed to the minor’s parent, guardian, or appointed general guardian.
The court has two primary options for handling the disbursement of the settlement funds:
1. Direct Payment to Parents or Guardians
The court may order that the funds be paid directly to the minor’s mother, father, or guardian. This payment can be made with or without requiring the posting of the court’s bond.
2. Appointment of a Guardian ad Litem
Alternatively, the court may require that a guardian ad litem or guardian be appointed to receive the funds. This payment may also be made, even without posting the court’s bond.
The judge exercises discretion in choosing the best option for the minor, focusing on what serves their interests. This decision considers factors such as the minor’s present and future financial needs, the nature of the claim, and any other relevant circumstances to ensure the most favorable outcome for the child.
Nevada Law on Blocked Trusts for Minors’ Settlements
After a child’s claim is settled, the parents or legal guardian who receives the settlement money must create a blocked fund investment to benefit the minor.
According to Nevada law, “blocked financial investments” can take several forms, including:
- A Nevada bank savings account
- A deposit certificate
- A US savings bond
- Variable or fixed annuity contracts
- Any other secure investment approved by a court
In summary, Nevada law requires the parents or legal guardian to set up a safe investment for the minor after the settlement. This process helps ensure the settlement funds are well-protected and used responsibly for the minor’s future needs.
Reporting Obligations After Settlement Approval
Once a settlement is approved, the parents or legal guardian managing the blocked investment for the minor should fulfill certain reporting responsibilities.
Within thirty days of receiving compensation, parents or guardians must provide the court with evidence that the minor’s blocked funds were invested as prescribed. If the investment balance exceeds $10,000, the parents, person supervising the investment, or legal guardian must submit an annual verified report to the court. This report should outline the activities of the investment from the past year.
If the investment balance is less than $10,000, the court can require the responsible party to file verified periodic reports. If the court feels it is necessary to clarify the investment’s activities, a court hearing on any report will be scheduled.
In summary, the parent or guardian must prove that the financial investment is set up within 30 days of receiving the settlement. Depending on the investment balance, they may need to provide annual or periodic reports to the court to ensure transparency and proper management of the financial investment for the minor’s benefit.
Accessing Funds from a Blocked Financial Trust
The beneficiaries of the blocked financial investments can gain control or receive funds from the minor’s investment in two ways:
- Through an order from the court. The beneficiary can access the assets or money by getting a court order from where the compromise hearing occurred. This order will grant the beneficiary the authority to release the funds or take control of the investment.
- By receiving a certification from the court confirming that the beneficiaries have turned 18 years old. Once a beneficiary turns 18, the court can provide a certification verifying their age. With this certification, they can take control of the investment or decide to close the account and receive the funds directly.
When this happens, the beneficiaries should be assigned control of the investments, or the fund investment should be liquidated and the funds distributed to them.
Who Can File a Car Accident Lawsuit for a Minor in Nevada?
In Nevada, children cannot file legal claims on their own because they are considered minors. Instead, the child’s custodial parent or guardian is responsible for bringing a claim on their behalf. A parent with legal custody can work with an attorney to submit a claim for an injured child.
If the parents are married, either can initiate a personal injury lawsuit in Nevada. However, for unmarried parents, only the custodial parent has the right to file a lawsuit for the child in Nevada courts.
Statute of Limitations for Personal Injury Claims
In Nevada, individuals have two years from the date of an injury to file a personal injury lawsuit related to car accidents. There are special rules for minor children. Nevada law extends the statute of limitations for minors, generally allowing it to be paused until the child turns eighteen. To expedite the process, the parents of an injured minor can file a lawsuit on their child’s behalf before they reach that age.
How a Personal Injury Attorney Can Help
Having a personal injury attorney can be extremely helpful in reaching a favorable settlement. Insurance adjusters often propose the lowest possible settlement, which typically does not cover a minor’s medical expenses or other costs from an accident. The last thing you want is for your injured or sick child to accept a settlement that does not address all their losses.
Fortunately, an experienced attorney can negotiate with the insurance adjuster for a fairer settlement. Personal injury lawyers are familiar with the tactics used by insurers to minimize payouts and will work to secure compensation that reflects all damages. While the claim representative may seem caring and supportive, their goal is often to persuade you into accepting a minimal settlement that benefits their company financially, leaving you and your injured child in a difficult situation.
For this reason, do not try to deal with insurance adjusters or representatives on your own. You need a skilled attorney with the expertise and resources to face insurance companies and their legal teams, increasing the chances of a better settlement.
Your lawyer will also review the settlement documents to make sure everything is clear before you sign. This includes explaining all the legal wording in the agreement and ensuring all the necessary waivers are completed. They will also discuss any tax implications of the settlement and guide you through any processes that you find confusing.
A skilled personal injury lawyer plays a vital role in claims involving minors by explaining the legal terms and relevant laws to both the parent or guardian ad litem and the child. This helps the child navigate the legal process more efficiently, leading to a quicker settlement with the opposing parties. It also ensures that your minor receives compensation sooner than if you were negotiating without legal assistance.
A lawyer will also work to ensure that the settlement presented to the court is fair and that the minor fully understands the terms of the agreement. With a knowledgeable attorney, you and your child can feel confident that your claim is in capable hands.
Find an Experienced Personal Injury Attorney Near Me
Handling a minor’s claim in Nevada is a complicated legal process that demands careful attention to detail and adherence to applicable laws and regulations. If your child has been injured in an accident due to a hazardous product or as a result of wrongful actions in Las Vegas, you should contact a personal injury lawyer.
At the Las Vegas Personal Injury Attorney Law Firm, we can help you pursue your claim vigorously and, if needed, take your child’s case to trial. We can also review and negotiate any proposed settlement agreements in Nevada on behalf of your child, ensuring that the court does not approve an unfair deal. To discuss your child’s claim or a minor’s compromise, call us today at 702-996-1224.
