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2021 California Rules of Court

Rule 7.950.5. Petition for expedited approval of compromise of claim or action or disposition of proceeds of judgment for minor or person with a disability

(a) Authorized use of petition for expedited approval

If all the circumstances specified in paragraphs (1) through (9) of this rule exist, a petitioner for court approval of a compromise of, or a covenant not to sue or enforce judgment on, a minor's disputed claim; a compromise or settlement of a pending action or proceeding to which a minor or person with a disability is a party; or the disposition of the proceeds of a judgment for a minor or person with a disability under Probate Code sections 3500 and 3600-3613 or Code of Civil Procedure section 372 may satisfy the disclosure requirements of rule 7.950 by submitting the petition on a completed Petition for Expedited Approval of Compromise of Claim or Action or Disposition of Proceeds of Judgment for Minor or Person With a Disability (form MC-350EX).

(1)  The petitioner is represented by an attorney authorized to practice in the courts of this state;

(2)  The claim is not for damages for the wrongful death of a person;

(3)  No portion of the net proceeds of the compromise, settlement, or judgment in favor of the minor or disabled claimant is to be placed in a trust;

(4)  There are no unresolved disputes concerning liens to be satisfied from the proceeds of the compromise, settlement, or judgment;

(5)  The petitioner's attorney did not become involved in the matter at the direct or indirect request of a person against whom the claim is asserted or an insurance carrier for that person;

(6)  The petitioner's attorney is neither employed by nor associated with a defendant or insurance carrier in connection with the petition;

(7)  If an action has been filed on the claim:

(A)  All defendants that have appeared in the action are participating in the compromise; or

(B)  The court has finally determined that the settling parties entered into the settlement in good faith;

(8)  The judgment for the minor or claimant with a disability (exclusive of interest and costs) or the total amount payable to the minor or claimant with a disability and all other parties under the proposed compromise or settlement is $50,000 or less or, if greater:

(A)  The total amount payable to the minor or claimant with a disability represents payment of the individual-person policy limits of all liability insurance policies covering all proposed contributing parties; and

(B)  All proposed contributing parties would be substantially unable to discharge an adverse judgment on the claim from assets other than the proceeds of their liability insurance policies; and

(9)  The court does not otherwise order.

(Subd (a) amended effective January 1, 2021.)

(b) Determination of expedited petition

A petition for expedited approval must be determined by the court not more than 35 days after it is filed, unless a hearing is requested, required, or scheduled under (c), or the time for determination is extended for good cause by order of the court.

(Subd (b) amended effective January 1, 2021.)

(c) Hearing on expedited petition

(1)  The petition for expedited approval must be determined by the court without a hearing unless:

(A)  A hearing is requested by the petitioner at the time the petition is filed;

(B)  An objection or other opposition to the petition is filed by an interested party; or

(C)  A hearing is scheduled by the court under (2) or (3).

(2)  The court may, on its own motion, elect to schedule and conduct a hearing on a petition for expedited approval. The court must make its election to schedule the hearing and must give notice of its election and the date, time, and place of the hearing to the petitioner and all other interested parties not more than 25 days after the date the petition is filed.

(3)  If the court decides not to grant a petition for expedited approval in full as requested, it must schedule a hearing and give notice of its intended ruling and the date, time, and place of the hearing to the petitioner and all other interested parties within the time provided in (2).

(Subd (c) amended effective January 1, 2021.)

Rule 7.950.5 amended effective January 1, 2021; adopted effective January 1, 2010.

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