Ill. R. Cir. Ct. Lake Cnty. 2-2.17

As amended through September 23, 2024

Rule 2-2.17 - Procedure for Disposition of Pending Law Cases in Personal Injury Actions Involving Claims of Minor or Disabled Person, by Trial Court

A. The settlement without trial of a pending lawsuit for personal injuries sustained by a minor or disabled person shall be presented for approval to the Judge hearing the case. A Petition to settle an action on behalf of a minor or disabled person shall have attached thereto a report of the attending physician stating the nature and extent of the injury. Approval shall be subject to the provisions of LCR 5-3.23, except that the Judge hearing the case may waive the filing of a written Petition under LCR 5-3.23 for the approval of attorney's fees in excess of twenty-five percent of the settlement. If the Judge hearing the case approves the settlement, the Order approving the settlement shall set forth the attorney's compensation, the cost, the expenses, and the net amount distributable to the minor or disabled person.

B. For distribution to be made as a result of a lawsuit for personal injuries sustained by a minor or disabled person where a Judgment has been entered after trial, the Judge hearing the case shall enter an Order for distribution setting forth the amount of the Judgment, the attorney's fees, the costs, the expenses, and the net amount distributable to the minor or disabled person. Distribution shall be subject to the provisions of LCR 5-3.23, except that the Judge hearing the case may waive the filing of a written Petition under LCR 5-3.23 for approval of attorney's fees in excess of twenty-five percent of the award.

C. The Order setting forth the distribution shall provide that the amount distributable to the minor or disabled person shall be paid only to the representative of the minor or disabled person appointed by the Probate Court in the estate filed on behalf of the minor or disabled person and that vouchers evidencing receipt of the funds be filed with the Court within a time prescribed by the Court. In the event that an estate has not yet been opened, a Petition for Guardianship shall be filed with and heard by the Probate Court within thirty days of the Trial Judge's Order. A copy of the Trial Judge's Order shall be attached to the Petition for Guardianship.

D. If the Petition proposes a "structured settlement", future payments must be guaranteed by an entity rated "A" or higher by Best's Insurance Guide or other rating service found acceptable to the Court.

E. When any funds are to be received by a parent or legal representative on behalf of a minor child, such funds shall be required to be deposited in an account in a financial institution approved by the Court for the benefit of the minor, and shall not be withdrawn without approval by Court Order. The financial institution so approved by the Court shall be insured either by the Federal Deposit Insurance Corporation (F.D.I.C.) or by the Federal Savings and Loan Insurance Corporation (F.S.L.I.C.).

F. The Court shall continue the case to a specific date for the purpose of having a voucher from the financial institution filed. The voucher from the depository shall acknowledge receipt of the funds and a copy of the Order of the Court approving settlement and shall include the express language that "No withdrawals shall be made from this account, unless authorized by Order of Court, at any time prior to [date upon which the minor will reach the age of majority]".

G. A Petition for withdrawal from said account prior to the minor reaching the age of majority shall be in writing and shall state the amount in the account the time of presenting the Petition, the annual income available to the minor, the amount and purpose for the withdrawal, and the amount of the last authorization for withdrawal from the account for the same purpose.

H. If the amount distributable to the minor or disabled person is less than the amount provided in Section 25-2 of the Probate Act, the Judge hearing the case may, by order, provide for distribution in accordance with the provisions of Section 25-2 of the Probate Act.

Ill. R. Cir. Ct. Lake Cnty. 2-2.17

Amended effective 3/11/2019.