Are There Special Court Procedures to Follow When a Minor is a Victim in an Accident in Las Vegas, Nevada?

When a minor is involved in a car, motorcycle or any other type of accident, they cannot hire an accident attorney on their own, unless they have been emancipated from their parents.  For the typical child or teenager, their parent or guardian must be the one to hire the injury attorney on behalf of their minor child. A minor is anyone who is less than 18 years of age.
 
This means that the parent or guardian is the one who signs legal documents on behalf of their child. Additionally and more importantly, special procedures need to be followed when the case is settled. Specifically, the Court MUST approve any settlement that involves a minor. The law governing minors involved in personal injury accidents is set forth in Nevada Revised Statute, (“NRS”) §41.200.
 
       NRS §41.200 provides in full:

NRS 41.200  Compromise by parent or guardian of claim by minor against third person; requirements of court petition; establishment of blocked financial investment for proceeds of compromise; no fees to be charged in proceedings.

      1.  If an unemancipated minor has a disputed claim for money against a third person, either parent, or if the parents of the minor are living separate and apart, then the custodial parent, or if no custody award has been made, the parent with whom the minor is living, or if a general guardian or guardian of the estate of the minor has been appointed, then that guardian, has the right to compromise the claim. Such a compromise is not effective until it is approved by the district court of the county where the minor resides, or if the minor is not a resident of the State of Nevada, then by the district court of the county where the claim was incurred, upon a verified petition in writing, regularly filed with the court.
      2.  The petition must set forth:
      (a) The name, age and residence of the minor;
      (b) The facts which bring the minor within the purview of this section, including:
             (1) The circumstances which make it a disputed claim for money;
             (2) The name of the third person against whom the claim is made; and
             (3) If the claim is the result of an accident, the date, place and facts of the accident;
      (c) The names and residence of the parents or the legal guardian of the minor;
      (d) The name and residence of the person or persons having physical custody or control of the minor;
      (e) The name and residence of the petitioner and the relationship of the petitioner to the minor;
      (f) The total amount of the proceeds of the proposed compromise and the apportionment of those proceeds, including the amount to be used for:
             (1) Attorney’s fees and whether the attorney’s fees are fixed or contingent fees, and if the attorney’s fees are contingent fees the percentage of the proceeds to be paid as attorney’s fees;
             (2) Medical expenses; and
             (3) Other expenses, and whether these fees and expenses are to be deducted before or after the calculation of any contingency fee;
      (g) Whether the petitioner believes the acceptance of this compromise is in the best interest of the minor; and
      (h) That the petitioner has been advised and understands that acceptance of the compromise will bar the minor from seeking further relief from the third person offering the compromise.
      3.  If the claim involves a personal injury suffered by the minor, the petitioner must submit all relevant medical and health care records to the court at the compromise hearing. The records must include documentation of:
      (a) The injury, prognosis, treatment and progress of recovery of the minor; and
      (b) The amount of medical expenses incurred to date, the nature and amount of medical expenses which have been paid and by whom, any amount owing for medical expenses and an estimate of the amount of medical expenses which may be incurred in the future.
      4.  If the court approves the compromise of the claim of the minor, the court must direct the money to be paid to the father, mother or guardian of the minor, with or without the filing of any bond, or it must require a general guardian or guardian ad litem to be appointed and the money to be paid to the guardian or guardian ad litem, with or without a bond, as the court, in its discretion, deems to be in the best interests of the minor.
      5.  Upon receiving the proceeds of the compromise, the parent or guardian to whom the proceeds of the compromise are ordered to be paid, shall establish a blocked financial investment for the benefit of the minor with the proceeds of the compromise. Money may be obtained from the blocked financial investment only pursuant to subsection 6. Within 30 days after receiving the proceeds of the compromise, the parent or guardian shall file with the court proof that the blocked financial investment has been established. If the balance of the investment is more than $10,000, the parent, guardian or person in charge of managing the investment shall annually file with the court a verified report detailing the activities of the investment during the previous 12 months. If the balance of the investment is $10,000 or less, the court may order the parent, guardian or person in charge of managing the investment to file such periodic verified reports as the court deems appropriate. The court may hold a hearing on a verified report only if it deems a hearing necessary to receive an explanation of the activities of the investment.
      6.  The beneficiary of a block financial investment may obtain control of or money from the investment:
      (a) By an order of the court which held the compromise hearing; or
      (b) By certification of the court which held the compromise hearing that the beneficiary has reached the age of 18 years, at which time control of the investment must be transferred to the beneficiary or the investment must be closed and the money distributed to the beneficiary.
      7.  The clerk of the district court shall not charge any fee for filing a petition for leave to compromise or for placing the petition upon the calendar to be heard by the court.
      8.  As used in this section, the term “blocked financial investment” means a savings account established in a depository institution in this state, a certificate of deposit, a United States savings bond, a fixed or variable annuity contract, or another reliable investment that is approved by the court.


What does NRS §41.200 mean in practice? First, your personal injury attorney will prepare what is called a “Petition to Compromise Minor’s Claim” (‘Petition’). This Petition will tell the court how the accident happened, the injuries the minor sustained and the medical bills that were incurred. After these and other background information are explained to the court, the court will decide if the settlement is in the best interests of the minor.  If the court approves the settlement, then the net proceeds (after all bills are paid), must be placed in a blocked account with a financial institution. 

This means that a parent or guardian cannot invest the funds or personally hold onto the funds for the minor child. Once the funds are placed in a blocked account, proof of the account must be then provided to the court. Only once that proof is provided to the court, will the Petition process be complete. When the minor child turns 18 years of age, the court will issue an order to the financial institute to release the funds to the now adult child.
 
Some parents and guardians find the process mandated by NRS §41.200 unnecessary.  However, it is the law and must be followed. The main purpose of NRS §41.200 is protect minors from any unfair settlements or from a parent or guardian spending the money or badly investing the money, before the minor turns 18.  

Next time, we will discuss what is a defense medical examination.