Arizona law requires all minor settlements for $10,000 or more be approved by a court and a conservatorship set-up with the funds placed in a court restricted bank account. However, this does not mean settlements for $9,999.99 or less do not need court approval. As the settlement is with a minor, the settlement is voidable by the minor until the statute of limitations passes for them, which is two years after his or her 18th birthday. To deal with this issue, and make a release binding, Arizona case law states a court can approve a minor’s settlement. If the settlement amount attributed to the minor is less than $10,000 and there are limits issues, concerns regarding the injuries, or other special concerns, it is strongly recommended that you request court approval of the settlement.
If you have any questions regarding minor settlements, please contact us. Brian Rubin (brubin@trkfirm.com) or Michael Kelley (mkelley@trkfirm.com).