How Do Personal Injury Settlements for Minors Work in Oregon?
The vast majority of personal injury cases in Oregon result in a settlement, usually between the plaintiff and the defendant’s insurance company. In some cases, of course, the parties are unable to reach a settlement and a personal injury lawsuit proceeds to trial. In that scenario, a judge or jury can award damages to a successful plaintiff who proves their case.
Special Rules for Children
But how does this process work when the accident victim is a minor? Under Oregon law, a “minor” is any person under the age of 18 who has not been legally emancipated. Generally speaking, minors cannot enter into legally binding contracts or manage their own property. These are both things that must be addressed in the context of a proposed personal injury settlement involving a minor.
Under Oregon law, a person who has legal custody of a minor–usually a parent–has the legal authority to hire a qualified personal injury attorney to handle the minor’s case. This attorney, through the parent, can enter into a personal injury settlement on that minor’s behalf for amounts of $25,000 or less. A minor cannot negotiate or sign their own settlement. Indeed, no insurance company or defense attorney would allow such a thing.
Oregon law specifies that any settlement of $25,000 must ultimately end up in a restricted minor account, where the funds will be held until the child reaches the age of 18.
In cases where a minor’s personal injury claim exceeds $25,000, an Oregon court must appoint a conservator, that is a fiduciary to protect and conserve the settlement funds on the minor’s behalf. In these cases it is the role of the conservator, rather than the minor’s custodian, to negotiate and manage any personal injury settlement on the minor’s behalf. These funds are typically held in a trust until the child turns 18.
A conservator can be a person or a financial institution, such as a bank. The court will generally require the conservator to file annual reports to ensure all funds are being used in the minor’s best interest. But the conservator can also agree to a structured settlement. A structured settlement is where instead of making a one-time payment, the defendant or their insurance company will instead provide funds to purchase an annuity, which makes payments to the minor over time. The need for such a settlement is case-specific.
Contact a Portland Personal Injury Lawyer Today
When your child is hurt due to someone else’s negligent or careless act, you understandably want justice. It is important to understand, however, that there are a number of special rules that must be followed in order to protect your child’s legal rights. Our Portland personal injury lawyers can advise you on these and many other subjects. Contact Rosenbaum Law Group, PC, today at 503-288-8000 to schedule a free consultation.
