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