(a) through (b) [Reserved]
(c) Minor or Protected Person.
(1) through (2) [Reserved]
(3) Representation. At the time of the commencement of any action or upon initial
appearance in defense of any action involving a beneficial interest or claim of a minor or
other person in need of protection (“protected person”) within the meaning of Fed. R. Civ.
P. 17(c) (“protected person” within this rule replaces the arguably pejorative term
“incompetent person” contained in Fed. R. Civ. P. 17(c)), the plaintiff or initially
appearing defendant shall petition the Court and obtain appointment by the Court of an
independent guardian ad litem to represent the interest of the ward. The guardian ad litem
shall be an attorney admitted to practice before this Court. The guardian ad litem shall be
independently appointed by the Court. At the time of the commencement of the action or
initial appearance in defense of any action, counsel for the plaintiff or initially appearing
defendant shall submit to the Court a list of not less than three attorneys and their
qualifications who are willing to serve as guardian ad litem. Upon a showing of good
cause, the Court may dispense with the appointment of a guardian ad litem, or may
determine that a pre-existing fiduciary, appointed or designated in a conservatorship or
guardianship, may act as the guardian ad litem.
(4) Procedure for Settlement or Compromise. Counsel for the minor or protected
person shall consult with the guardian ad litem prior to proposing or responding to any
settlement offer. No claims of a ward shall be settled or compromised without the prior
approval of the Court. Prior to the presentment to the Court of any proposed settlement,
the guardian ad litem shall independently investigate the proposed settlement and file a
written report with the Court as to the adequacy of the proposed settlement, including an
analysis of costs and fees.
(5) Hearing and Calculation of Fee. At the time the petition for approval of the
settlement is heard, the allowance and taxation of all fees, costs, and other charges
incident to the settlement of the minor’s claim shall be considered and disposed of by the
Court in its discretion. In the case of a structured settlement or annuity, the fee shall be
based on the actual cost of the annuity, the cost of which may be disclosed in camera upon
request.
(6) Deposit in Court and Disbursements. If approved by the Court, funds recovered for
the benefit of a minor or protected person shall be invested or disbursed in such a manner
as the Court deems proper for the best interests of the minor or protected person. Unless
otherwise ordered, all funds recovered on behalf of a minor or protected person, either
through settlement or judgment, shall be paid into the registry of the Court. Disbursement
of such funds for attorney’s fees, costs, or other allowable expenses shall be paid only
upon approval of the Court.
(7) Control of Remaining Funds.
(A) $50,000 or Less. If the money or the value of other property remaining is
$50,000 or less and there is no general guardian of the ward, the Court shall
require that (1) the money be deposited in a bank or trust company or be invested
in an account in an insured financial institution for the benefit of the ward subject
to withdrawal only upon the order of the Court as part of the original proceeding,
or (2) a general guardian be appointed and the money or other property be paid or
delivered to such guardian.
(B) Over $50,000. If the money or the value of other property remaining exceeds
$50,000, and there is no general guardian of the ward, the Court in the order or
judgment shall require that a general guardian be appointed by a court of
competent jurisdiction.
(8) Deposit of Minor’s Funds. Checks for funds for the benefit of a minor may be made
out by the Clerk of Court jointly to the depository bank, trust company, or insured
financial institution and the independent attorney for the minor, guardian ad litem, or
general guardian and deposit shall be made in a blocked account for the minor with
provision that withdrawals cannot be made without court order. A deposit receipt to that
effect must forthwith be filed with the Court by the attorney or guardian.
