Relevant Law Concerning Minors or Individuals with Disabilities

The petitions to approve minors or individuals with disabilities’ compromises are governed by California Rules of Court, Rules 7.950, et seq. and Probate Code sections 3500 and 3600 et seq. If an action is pending and settlement is effected prior to trial, the person with a disability’s compromise must be approved by the court. (Code Civ. Proc., Sec. 372.)

California Rules of Court, rule 7.950 provides:

“A petition for court approval of a compromise of or a covenant not to sue or enforce judgment on a minor's disputed claim; a compromise or settlement of a pending action or proceeding to which a minor or person with a disability is a party; or disposition of the proceeds of a judgment for a minor or person with a disability under chapter 4 of part 8 of division 4 of the Probate Code (commencing with section 3600) or Code of Civil Procedure section 372 must be verified by the petitioner and must contain a full disclosure of all information that has any bearing upon the reasonableness of the compromise, covenant, settlement, or disposition. Except as provided in rule 7.950.5, the petition must be prepared on a fully completed Petition to Approve Compromise of Disputed Claim or Pending Action or Disposition of Proceeds of Judgment for Minor or Person With a Disability (form MC-350).”

A petition for approval of a minor's compromise must be verified and must fully disclose "all information that has any bearing upon the reasonableness of the compromise," including the amount paid and owing for medical care and the "amounts of any negotiated reductions of the charges." (Cal. Rules of Court, rule 7.950 (5); see also Espericueta v. Shewry (2008) 164 Cal.App.4th 615, 625.)

Hearing Requirement

Pursuant to California Rules of Court, Rule 7.952(a), Petitioner and Claimant are required to attend the hearing on the petition.

Probate Code section 3601 provides:

1. The court making the order or giving the judgment referred to in Section 3600, as a part thereof, shall make a further order authorizing and directing that reasonable expenses, medical or otherwise and including reimbursement to a parent, guardian, or conservator, costs, and attorney's fees, as the court shall approve and allow therein, shall be paid from the money or other property to be paid or delivered for the benefit of the minor or person with a disability.
2. The order required by subdivision (a) may be directed to the following:
1. A parent of the minor, the guardian ad litem, or the guardian of the estate of the minor or the conservator of the estate of the person with a disability.
2. The payer of any money to be paid pursuant to the compromise, covenant, or judgment for the benefit of the minor or person with a disability.”

Probate Code section 3602(b) provides:

Except as provided in subdivisions (c) and (d), if there is a guardianship of the estate of the minor or conservatorship of the estate of the person with a disability, the remaining balance of the money and other property, after payment of all expenses, costs, and fees as approved and allowed by the court under Section 3601, shall be paid or delivered to the guardian or conservator of the estate. Upon application of the guardian or conservator, the court making the order or giving the judgment referred to in Section 3600 or the court in which the guardianship or conservatorship proceeding is pending may, with or without notice, make an order that all or part of the money paid or to be paid to the guardian or conservator under this subdivision be deposited or invested as provided in Section 2456.

Attorney's Fees

Attorney's fees for services to a minor or person with a disability are governed by California Rules of Court, rule 7.955 and use a “reasonable fee” standard.

California Rules of Court, rule 7.955(a) states that, unless the Court approved the fee arrangement in advance, the Court must use a reasonable fee standard when approving and allowing the amount of attorney's fees payable from money or property paid or to be paid for the benefit of a person with a disability. The Court must give consideration to the terms of any representation agreement made between the attorney and the representative of the person with a disability and must evaluate the agreement based on the facts and circumstances existing at the time the agreement was made.

Further, rule 7.955(c) requires the attorney to submit a declaration that addresses the following non-exclusive factors:

1. The fact that a minor or person with a disability is involved and the circumstances of that minor or person with a disability.
2. The amount of the fee in proportion to the value of the services performed.
3. The novelty and difficulty of the questions involved and the skill required to perform the legal services properly.
4. The amount involved and the results obtained.
5. The time limitations or constraints imposed by the representative of the minor or person with a disability or by the circumstances.
6. The nature and length of the professional relationship between the attorney and the representative of the minor or person with a disability.
7. The experience, reputation, and ability of the attorney or attorneys performing the legal services.
8. The time and labor required.
9. The informed consent of the representative of the minor or person with a disability to the fee.
10. The relative sophistication of the attorney and the representative of the minor or person with a disability.
11. The likelihood, if apparent to the representative of the minor or person with a disability when the representation agreement was made, that the attorney's acceptance of the particular employment would preclude other employment.
12. Whether the fee is fixed, hourly, or contingent.
13. If the fee is contingent:
1. The risk of loss borne by the attorney;
2. The amount of costs advanced by the attorney; and
3. The delay in payment of fees and reimbursement of costs paid by the attorney.
14. Statutory requirements for representation agreements applicable to particular cases or claims.

(California Rules of Court, rule 7.955(c).)