My wife has been awarded a settlement but the attorneys will not disburse the funds
Full Question:
Answer:
Typically, when a settlement is reached before trial, the court must approve the settlement and associated fees before the funds may be disbursed. California statutes don’t specify a time within which a judge must rule on a motion. However, case law has generally found that judges must act within a “reasonable time”. What is reasonable is a subjective determination, based on all the facts and circumstances in each case.
The following statute applies to the settlement of actions involving a disabled person. There is no time specified for holding a hearing, and the procedures vary whether or not a conservator has been appointed. For good cause shown, an interested party may petition the court and the judge may order that all or part of the remaining balance of money not become a part of the guardianship or conservatorship estate and instead be deposited in an insured account in a financial institution in this state, or in a single-premium deferred annuity, subject to withdrawal only upon authorization of the court.
3600. This chapter applies whenever both of the following
conditions exist:
(a) A court
(1) approves a compromise of, or the execution of acovenant not to sue on or a covenant not to enforce judgment on, a
minor's disputed claim,
(2) approves a compromise of a pending actionor proceeding to which a minor or person with a disability is a
party, or
(3) gives judgment for a minor or person with a disability.
(b) The compromise, covenant, or judgment provides for the paymentor delivery of money or other property for the benefit of the minor
or person with a disability.
3601.
(a) The court making the order or giving the judgmentreferred to in Section 3600, as a part thereof, shall make a further
order authorizing and directing that reasonable expenses, medical or
otherwise and including reimbursement to a parent, guardian, or
conservator, costs, and attorney's fees, as the court shall approve
and allow therein, shall be paid from the money or other property to
be paid or delivered for the benefit of the minor or person with a
disability.
(b) The order required by subdivision (a) may be directed to thefollowing:
(1) A parent of the minor, the guardian ad litem, or the guardianof the estate of the minor or the conservator of the estate of the
person with a disability.
(2) The payer of any money to be paid pursuant to the compromise,covenant, or judgment for the benefit of the minor or person with a
disability.
3602.
(a) If there is no guardianship of the estate of the minor orconservatorship of the estate of the person with a disability, the
remaining balance of the money and other property, after payment of
all expenses, costs, and fees as approved and allowed by the court
under Section 3601, shall be paid, delivered, deposited, or invested
as provided in Article 2 (commencing with Section 3610).
(b) Except as provided in subdivisions (c) and (d), if there is aguardianship of the estate of the minor or conservatorship of the
estate of the person with a disability, the remaining balance of the
money and other property, after payment of all expenses, costs, and
fees as approved and allowed by the court under Section 3601, shall
be paid or delivered to the guardian or conservator of the estate.
Upon application of the guardian or conservator, the court making the
order or giving the judgment referred to in Section 3600 or the
court in which the guardianship or conservatorship proceeding is
pending may, with or without notice, make an order that all or part
of the money paid or to be paid to the guardian or conservator under
this subdivision be deposited or invested as provided in Section
2456.
(c) Upon ex parte petition of the guardian or conservator or uponpetition of any person interested in the guardianship or
conservatorship estate, the court making the order or giving the
judgment referred to in Section 3600 may for good cause shown order
one or more of the following:
(1) That all or part of the remaining balance of money not becomea part of the guardianship or conservatorship estate and instead be
deposited in an insured account in a financial institution in this
state, or in a single-premium deferred annuity, subject to withdrawal
only upon authorization of the court.
(2) If there is a guardianship of the estate of the minor, thatall or part of the remaining balance of money and other property not
become a part of the guardianship estate and instead be transferred
to a custodian for the benefit of the minor under the California
Uniform Transfers to Minors Act, Part 9 (commencing with Section
3900).
(3) That all or part of the remaining balance of money and otherproperty not become a part of the guardianship estate and, instead,
be transferred to the trustee of a trust which is either created by,
or approved of, in the order or judgment described in Section 3600.
This trust shall be revocable by the minor upon attaining 18 years of
age, and shall contain other terms and conditions, including, but
not limited to, terms and conditions concerning trustee's accounts
and trustee's bond, as the court determines to be necessary to
protect the minor's interests.
(d) Upon petition of the guardian, conservator, or any personinterested in the guardianship or conservatorship estate, the court
making the order or giving the judgment referred to in Section 3600
may order that all or part of the remaining balance of money not
become a part of the guardianship or conservatorship estate and
instead be paid to a special needs trust established under Section
3604 for the benefit of the minor or person with a disability.
(e) If the petition is by a person other than the guardian orconservator, notice of hearing on a petition under subdivision (c)
shall be given for the period and in the manner provided in Chapter 3
(commencing with Section 1460) of Part 1.
(f) Notice of the time and place of hearing on a petition undersubdivision (d), and a copy of the petition, shall be mailed to the
State Director of Health Services, the Director of Mental Health, and
the Director of Developmental Services at the office of each
director in Sacramento at least 15 days before the hearing.
The following is a California Rule of Court:
Rule 3.1384. Petition for approval of the compromise of a claim of a minor or a person with a disability; order for deposit of funds; and petition for withdrawal
(a) Petition for approval of the compromise of a claim
A petition for court approval of a compromise or covenant not to sue under Code of Civil Procedure section 372 must comply with rules 7.950, 7.951, and 7.952.
(b) Order for the deposit of funds and petition for withdrawal
An order for the deposit of funds of a minor or a person with a disability, and a petition for the withdrawal of such funds, must comply with rules 7.953 and 7.954.
(Subd (b) amended effective January 1, 2007.)
