TL;DR
A friendly suit is a legal proceeding required to finalize a wrongful death settlement on behalf of a minor child. Because children cannot legally enter into binding contracts, a judge must approve the settlement to ensure it is fair and in the child’s best interest. This court-supervised process involves appointing a guardian ad litem to investigate the settlement terms and creating a secure financial plan, such as a structured settlement or a restricted trust, to protect the funds until the child reaches adulthood.
Key Highlights
- Court Approval is Mandatory: A settlement involving a minor is not legally valid without a judge’s approval through a friendly suit.
- Protects the Minor’s Interests: The process is designed to prevent exploitation and ensure the settlement amount is fair and reasonable.
- Guardian Ad Litem is Appointed: An independent attorney, the guardian ad litem, reviews the case and reports to the judge on whether the settlement serves the child’s best interests.
- Secures Settlement Funds: The money is placed into a protected financial vehicle, like an annuity or trust, which prevents misuse and preserves it for the child’s future.
The loss of a parent is a profound tragedy for a child, one that creates emotional and financial instability. When this loss is due to someone else’s negligence, a wrongful death claim can provide essential financial support for the child’s future. According to the Centers for Disease Control and Prevention (CDC), unintentional injuries are a leading cause of death in the United States, with thousands of these incidents resulting in families filing wrongful death claims to seek accountability and compensation. These claims are intended to cover the loss of financial support, guidance, and care the deceased would have provided.
When the beneficiary of such a claim is a minor, the legal system imposes a special layer of protection. Under long-standing legal principles recognized across the country, a minor lacks the legal capacity to enter into contracts, including a settlement agreement. This means a child cannot simply sign a document to resolve a claim; any such agreement would be legally unenforceable. To address this, courts have established a specific procedure to validate these settlements, ensuring they are fair and that the resulting funds are managed responsibly for the child’s benefit.
This court-supervised procedure is commonly known as a “friendly suit.” The term itself can seem contradictory, as lawsuits are typically associated with conflict. However, in this context, the suit is not an adversarial battle. Instead, it is a cooperative legal action filed with the court for the sole purpose of obtaining a judge’s formal approval of a settlement that has already been agreed upon by the minor’s representative and the defendant’s insurance company. It is the legal system’s way of stepping in to act as a guardian, protecting the financial future of a child who has already suffered an immense loss.
What Exactly is a Friendly Suit? A Closer Look at the Legal Proceeding
A friendly suit, sometimes called a “pro-ami” action or a minor’s settlement petition, is a court filing that transforms a private settlement agreement into a legally binding court order. It is fundamentally different from a traditional, contested lawsuit where two parties are in active disagreement over liability or damages. In a friendly suit, the disagreement has already been resolved through negotiation. The plaintiff (the minor, represented by a parent or guardian) and the defendant have reached a tentative agreement on the settlement amount.
The “friendly” nature of the suit comes from this pre-existing agreement. Both sides are coming to the court together, asking the judge to review and approve their resolution. The purpose is not to fight but to seek judicial oversight. This process is a legal formality, but it is a critical one. Without it, the settlement would be vulnerable. The defendant or their insurance company would have no guarantee that the minor, upon turning 18, wouldn’t try to reopen the case and sue for more money, claiming the original settlement was invalid because they were a child when it was made.
The core function of the friendly suit is to provide this finality and legal certainty. By reviewing and approving the settlement, the court accomplishes several key objectives:
- Validates the Agreement: The judge’s order makes the settlement legally binding and enforceable on all parties, including the minor.
- Confirms Fairness: The court independently assesses whether the settlement amount is adequate compensation for the minor’s losses.
- Protects the Funds: The judge mandates how the money will be held and managed to ensure it is available for the child’s future needs, such as education, healthcare, and general welfare.
Essentially, the friendly suit is a protective shield. It shields the minor from an unfair settlement, it shields the settlement funds from mismanagement, and it shields the defendant from future legal challenges related to the same incident.
Why Court Approval is Mandatory for a Minor’s Wrongful Death Settlement
The requirement for a friendly suit is rooted in a legal doctrine known as parens patriae, a Latin term meaning “parent of the nation.” This principle gives the court the inherent authority and responsibility to protect those who cannot protect themselves, including minor children. When a child is set to receive a significant sum of money from a wrongful death settlement, the court steps into the role of a super-guardian to oversee the transaction.
The primary reason this oversight is mandatory is the legal concept of “contractual capacity.” In the eyes of the law, individuals under the age of 18 are not considered mature enough to understand the long-term consequences of legal agreements. Therefore, any contract they sign—including a settlement release form—is generally voidable. This means the minor could choose to cancel the agreement upon reaching the age of majority (usually 18).
Imagine a scenario without a friendly suit. A parent, acting on behalf of their 10-year-old child, accepts a settlement from an insurance company. When that child turns 18, they could argue that they never legally agreed to the settlement and that their parent accepted an amount that was far too low. They could then file a new lawsuit against the same defendant for the same incident. This legal uncertainty is unacceptable for defendants and their insurers. The friendly suit eliminates this risk by having a judge declare the settlement fair and final.
Beyond protecting the defendant, the process serves several crucial functions for the minor:
- Prevents Undue Influence: It ensures the surviving parent or guardian is not pressured into accepting a lowball offer from an insurance company. A judge, with the help of a guardian ad litem, provides an objective evaluation.
- Guards Against Mismanagement: The court ensures the settlement funds are not spent frivolously or used for the parent’s benefit. The money is legally the child’s property, and the court’s order will dictate how it is invested and preserved.
- Evaluates All Components: The judge reviews not only the total settlement amount but also the allocation of funds, including attorney’s fees and reimbursement of any case-related expenses. This ensures that the net amount the child receives is substantial and appropriate.
In short, the mandatory court approval process is a non-negotiable part of resolving a minor’s wrongful death claim. It is the legal system’s most effective tool for balancing the need for a final resolution with the profound duty to protect a vulnerable child’s future.
The Key Players in a Friendly Suit: Who is Involved?
A friendly suit involves several key individuals, each with a distinct and important role. Understanding who these players are and what they do is essential to understanding the process. While the proceeding is “friendly,” it is still a formal court action with specific rules and participants.
The Minor’s Representative (Next Friend or Guardian)
Since a minor cannot file a claim on their own, an adult must do so on their behalf. This person is often referred to as the “next friend” or legal guardian. In most wrongful death cases, this is the surviving parent. The next friend is the official plaintiff in the lawsuit and has the authority to negotiate the settlement with the defendant. However, their authority is limited; they can agree to a settlement, but they cannot finalize it without the court’s permission. Their primary duty is to act in the best interest of the child throughout the legal process.
The Guardian Ad Litem (GAL)
Perhaps the most critical figure in a friendly suit is the guardian ad litem. A GAL is an independent, neutral attorney appointed by the judge specifically for the friendly suit. Their sole responsibility is to represent the minor’s best interests. The GAL does not work for the parents, the family’s attorney, or the defendant. They work for the court.
The GAL’s job includes:
- Investigating the Facts: The GAL will review the accident report, medical records (if any), and other evidence related to the wrongful death claim to understand the strength of the case.
- Evaluating the Settlement: They will analyze the settlement amount to determine if it is fair and reasonable given the circumstances. This includes considering the financial support the deceased parent would have provided, the child’s future needs, and the limits of any applicable insurance policies.
- Reviewing Attorney’s Fees: The GAL examines the fee agreement between the family and their attorney to ensure the legal fees are reasonable and in line with local standards.
- Assessing the Financial Plan: They will scrutinize the proposed plan for managing the settlement funds, whether it’s a structured settlement, a trust, or another vehicle, to ensure it is secure and appropriate.
- Making a Recommendation: After completing their investigation, the GAL prepares a formal report for the judge, recommending whether the court should approve or reject the settlement.
The judge relies heavily on the GAL’s unbiased report when making a final decision.
The Judge
The judge is the ultimate decision-maker. They preside over the friendly suit hearing, review all the filed documents, consider the guardian ad litem’s report, and listen to any testimony presented. The judge’s role is not just to rubber-stamp the agreement but to exercise their judicial discretion to protect the minor. If the judge is not convinced the settlement is fair or that the funds are adequately protected, they can reject the settlement and send the parties back to the negotiating table. If they approve it, their signature on the final order makes the settlement legally binding.
The Attorneys
Two sets of attorneys are typically involved. The family’s wrongful death attorney represents the next friend and the minor’s interests in negotiating with the defendant. They are responsible for building the case, reaching a settlement, and filing the friendly suit petition. The defendant’s attorney (usually hired by an insurance company) represents the at-fault party. In the context of the friendly suit, their role is to ensure the settlement is properly and finally approved by the court to close the claim permanently.
The Step-by-Step Process of a Friendly Suit
The friendly suit process follows a structured path from the initial settlement agreement to the final court order. While the specific procedures can vary slightly by state or jurisdiction, the general steps are consistent.
Step 1: Reaching a Tentative Settlement Agreement Before any court is involved, the minor’s attorney negotiates with the defendant or their insurance company. They will present evidence of liability and damages, including calculations of the economic and non-economic losses the child will suffer due to the parent’s death. Once both sides agree on a settlement figure and general terms, this tentative agreement forms the basis for the friendly suit.
Step 2: Filing the Petition for Approval The minor’s attorney drafts and files a formal petition with the appropriate court. This document officially initiates the friendly suit. The petition typically includes:
- A detailed description of the incident that led to the wrongful death.
- The names of all parties involved.
- The total amount of the proposed settlement.
- A proposed distribution of the funds, including the net amount for the minor, the amount for attorney’s fees, and any case expenses to be reimbursed.
- A proposal for how the minor’s funds will be managed (e.g., the purchase of a structured settlement annuity).
Step 3: Appointment of the Guardian Ad Litem Upon receiving the petition, the court will appoint a guardian ad litem (GAL). The judge will select a qualified local attorney who has experience in these matters. The GAL is officially charged with conducting an independent investigation into the settlement.
Step 4: The GAL’s Investigation This is the fact-finding phase for the GAL. They will review the entire case file from the family’s attorney. They may speak with the surviving parent to understand the family’s situation and the child’s future needs. The GAL will carefully analyze the financial aspects, ensuring the attorney’s fees are fair and the plan for the settlement money is sound. Their goal is to answer one question for the court: Is this settlement in the absolute best interest of this child?
Step 5: The Court Hearing (Prove-Up Hearing) Once the GAL completes their investigation and submits their report, the court schedules a hearing, often called a “prove-up hearing.” At this hearing, the minor and their parent or guardian must typically appear before the judge. The family’s attorney will present the key facts of the case and the terms of the settlement. The judge may ask questions of the parent to confirm they understand and agree with the settlement. The GAL will also present their findings and recommendation to the court. This hearing allows the judge to see the people involved and make a fully informed decision.
Step 6: The Court’s Order If the judge is satisfied that the settlement is fair and the financial plan is secure, they will sign a court order approving it. This order is the final, legally binding document. It will specify the exact settlement amount, approve the attorney’s fees, and detail precisely how the minor’s funds are to be deposited and managed. The insurance company can then issue the settlement check, knowing the matter is legally concluded.
Managing the Settlement Funds: Protecting the Minor’s Financial Future
A central part of the friendly suit is determining how the settlement money will be managed. The court will not allow the funds to be paid directly to the parent or guardian for their unrestricted use. The money belongs to the child, and the court’s order will mandate that it be placed in a secure financial instrument that protects it until the child reaches the age of 18 or, in some cases, even later.
There are two primary methods used to safeguard these funds:
1. Structured Settlements (Annuities)
A structured settlement is the most common and often preferred method for managing a minor’s settlement. Instead of a single lump-sum payment, the settlement funds are used to purchase an annuity from a highly-rated life insurance company. This annuity is a contract that guarantees a series of future payments to the child.
The payment schedule can be customized to meet the child’s anticipated needs. For example, it might include:
- A lump sum payment at age 18 to pay for college tuition.
- Additional lump sums at ages 21 and 25 to help with graduate school or a down payment on a home.
- Monthly payments throughout their college years to cover living expenses.
Benefits of a Structured Settlement:
- Guaranteed Payments: The payments are secure and not subject to market fluctuations.
- Tax-Free: Payments received from a structured settlement for a personal injury or wrongful death claim are completely free from income tax.
- Financial Discipline: It prevents a young adult from receiving a large windfall at age 18 and potentially spending it irresponsibly.
2. Court-Restricted Accounts or Trusts
Another option is to place the lump-sum settlement into a special bank account or trust.
- Court-Restricted Bank Account: The money is deposited into a federally insured bank account in the child’s name. The account is “restricted,” meaning no withdrawals can be made without a specific court order. The parent can petition the court for funds if needed for the child’s health, education, or welfare, but a judge must approve the expense.
- Minor’s Trust: A formal trust can be established with the child as the beneficiary. A trustee (which can be a person or a financial institution) is appointed to manage and invest the funds according to the terms of the trust document. These terms are approved by the court and will dictate when and how the child can access the money.
The judge, with input from the GAL and the family’s attorney, will decide which financial vehicle is most appropriate for the child’s specific situation. The primary goal is always the long-term preservation and prudent management of the funds.
Common Questions and Considerations in a Minor’s Settlement
Families facing this difficult process often have many questions. Understanding some of the common considerations can help clarify the path forward.
How is the settlement amount determined? The value of a wrongful death claim for a minor is based on several factors, including the deceased parent’s earning capacity, the age of the child (a younger child will have more years of lost support), the loss of parental guidance and companionship, and the limits of the at-fault party’s insurance policy. An experienced attorney will use economists and other experts to project these losses and justify the settlement demand.
What about attorney’s fees and costs? Personal injury and wrongful death attorneys typically work on a contingency fee basis, meaning they receive a percentage of the final settlement. In a minor’s case, these fees are not automatic. The attorney must submit their fee agreement and a list of case-related costs to the court. Both the GAL and the judge will review them to ensure they are reasonable before approving them as part of the settlement distribution.
How long does the friendly suit process take? Once a tentative settlement is reached, the friendly suit process itself usually takes a few months. The timeline depends on the court’s schedule, the time it takes to appoint a GAL, and the complexity of the GAL’s investigation. It is a deliberate process designed to be thorough rather than fast.
Can a settlement be rejected by the court? Yes. If the judge or the GAL believes the settlement amount is too low, the attorney’s fees are too high, or the financial plan is inadequate, the court can refuse to approve it. If this happens, the family’s attorney will typically have to go back and renegotiate a better deal with the defendant or propose a more secure financial plan. The court’s rejection serves as a powerful form of leverage to ensure the minor gets a fair outcome.
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Conclusion
The friendly suit is a vital legal safeguard in the tragic event of a minor’s wrongful death settlement. It is a structured, court-supervised process that replaces the uncertainty of a private agreement with the finality of a judicial order. While it adds steps to the settlement process, its purpose is entirely protective: to confirm the settlement is fair, to ensure legal fees are reasonable, and, most importantly, to protect the settlement funds for the child’s future. By appointing an independent guardian ad litem and mandating the use of secure financial instruments like structured settlements or restricted trusts, the court acts as the ultimate protector of the child’s best interests.
This process ensures that the financial compensation intended to support a child through life is preserved and managed responsibly. It provides a framework of accountability that shields the child from potential mismanagement and ensures that the resources are available for their education, health, and well-being as they grow.
If your family is facing the difficult task of pursuing a wrongful death claim for a child, it is critical to work with a legal team that has deep experience with the specific requirements of minor settlements. An attorney who understands the friendly suit process can guide you through each step, ensuring that all legal formalities are met and that your child’s financial future is secure. The right legal guidance is essential to honoring the memory of your loved one by providing the best possible foundation for your child’s life ahead. Contact us today for a free evaluation. If you’ve lost a loved one due to someone else’s negligence, we understand the emotional and legal challenges you’re facing. We are here to guide you through the process, helping you make informed decisions during this difficult time. Reach out now, and let’s work together to pursue justice for your family.