MINORS AND INCOMPETENTS
(a) Appointment of Representative or Guardian. Upon commencement of
an action or upon initial appearance in defense of an action by or on behalf of a minor or
incompetent person, the attorney representing the minor or incompetent person shall
present (1) appropriate evidence of the appointment of a representative for the minor or
incompetent person under state law or (2) a motion for the appointment of a guardian ad
litem by the Court, or, (3) a showing satisfactory to the Court that no such appointment is
necessary to ensure adequate representation of the minor or incompetent person. See
Fed. R. Civ. P. 17(c).
(b) Settlement. No claim by or against a minor or incompetent person may be
settled or compromised absent an order by the Court approving the settlement or
compromise.
(1) Initial State Court Approval. In actions in which the minor or
incompetent is represented by an appointed representative pursuant to appropriate state
law, excepting only those actions in which the United States courts have exclusive
jurisdiction, the settlement or compromise shall first be approved by the state court having
jurisdiction over the personal representative. Following such approval, a copy of the order
and all supporting and opposing documents filed in connection therewith shall be filed in
the District Court with a copy to all parties and to the Judge or Magistrate Judge who may
either approve the settlement or compromise without hearing or calendar the matter for
hearing.
(2) Approval in All Other Actions. In all other actions, the motion for
approval of a proposed settlement or compromise shall be filed and calendared pursuant
to L.R. 230. The application shall disclose, among other things, the age and sex of the
minor or incompetent, the nature of the causes of action to be settled or compromised,
the facts and circumstances out of which the causes of action arose, including the time,
place and persons involved, the manner in which the compromise amount or other
consideration was determined, including such additional information as may be required
to enable the Court to determine the fairness of the settlement or compromise, and, if a
personal injury claim, the nature and extent of the injury with sufficient particularity to
inform the Court whether the injury is temporary or permanent. If reports of physicians or
other similar experts have been prepared, such reports shall be provided to the Court.
The Court may also require the filing of experts' reports when none have previously been
prepared or additional experts' reports if appropriate under the circumstances. Reports
protected by an evidentiary privilege may be submitted in a sealed condition to be
reviewed only by the Court in camera, with notice of such submission to all parties.
(c) Disclosure of Attorney's Interest. When the minor or incompetent is
represented by an attorney, it shall be disclosed to the Court by whom and the terms
under which the attorney was employed; whether the attorney became involved in the
application at the instance of the party against whom the causes of action are asserted,
directly or indirectly; whether the attorney stands in any relationship to that party; and
whether the attorney has received or expects to receive any compensation, from whom,
and the amount.
(d) Attendance at Hearing. Upon the hearing of the application, the
representative compromising the claim on behalf of the minor or incompetent, and the
minor or incompetent shall be in attendance unless, for good cause shown, the Court
excuses their personal attendance. The Court may require the testimony of any
appropriate expert, as well as the submission of other evidence relating to the application.
(e) Payment of Judgment. Whenever money or property is recovered on
behalf of a minor or incompetent person, the money or property will be (1) disbursed to
the representative pursuant to state law upon a showing that the representative is duly
qualified under state law, (2) disbursed otherwise pursuant to state law, or (3) disbursed
pursuant to such other order as the Court deems proper for the protection of the minor or
incompetent person.
(f) Interim Disbursements. Applications for orders authorizing interim
disbursements shall be heard by the appropriate state court judge or by the assigned
Magistrate Judge. See L.R. 302(c)(14). In the event of a hearing by a state court judge
concerning interim disbursements, a copy of the order shall be filed with a copy to the
Magistrate Judge and shall be reviewed by the Magistrate Judge in accordance with
(b)(1).
