In most if not all states, the settlement of a minor’s personal injury claim must be approved by the Court. This is certainly true in Tennessee – the applicable statute is T.C.A. Section 29-34-105.
The Alabama Supreme Court recently decided a case in which the minor died after a settlement was reached with the defendant’s insurer and the plaintiff’s uninsured motorist carrier but before state court approval could be obtained. The death occurred as a result of a subsequent unrelated automobile accident . The insurance company then attempted to have the settlement declared void in a declaratory judgment action filed in federal court.
The federal court certified this question to the Alabama Supreme Court: "Under Alabama law, is an insurance company bound to a settlement agreement negotiated on behalf of an injured minor, if that minor dies before the scheduling of a pro ami hearing which was intended by both sides to obtain approval of the settlement?"