Rule 2039 - PETITIONS FOR APPROVAL OF MINORS-COMPROMISES(a)(1) Petitions for Approval of Settlement or Compromise in matters in which a minor has an interest shall be filed in the Orphans' Court Division where the minor resides if no suit has been previously filed or in the Prothonotary's Office under the docket number of the previously filed suit.(2) The petition shall set forth:(i) The factual background of the claim;(ii) The identification of the parties, including the age of the minor and the addresses of the biological parents of the minor; (if the minor is not living with both natural parents, a copy of any order of court awarding custody or guardianship and a description of where and with whom the minor has resided over the preceding five years);(iii) Counsel's analysis of the liability and damages issues relevant to the determination of the reasonableness of the proposed settlement;(iv) Counsel's certification that the settlement is reasonable and in the best interest of the minor;(v) The types and amounts of insurance coverage applicable to the claim and representation as to the efforts made to identify other collateral sources;(vi) Whether there are any unpaid liens, claims or debts. Where claims or debts have been waived, petitioner shall attach as an exhibit written proof of waiver of such lien, claim or debt;(vii) A request for authorization of parent or natural guardian to sign the proposed release;(viii) A description of the type of account into which the settlement proceeds will be deposited;(ix) A statement of the proposed distribution of the settlement funds which includes the proposed percentage of counsel fees and an itemization of costs. The petitioner shall attach appropriate documentation in support of the itemized costs; and (x) Certification of joinder of the custodial parent(s) or appointed guardians in the proposed settlement.(3) The petition shall contain the following exhibits: (i) Copies of medical reports or records evidencing the diagnosis and prognosis of the minor's injuries;(ii) Investigative or police accident reports which provide background information regarding the incident which caused the minor's injuries; and(iii) The counsel fee agreement with the parents or natural guardians of the minor executed by any attorney seeking recovery of counsel fees.(4) Any amendments or supplements to the petition required by the Court shall be filed of record.(5) All petitions filed under this rule shall be assigned to the Orphans' Court for disposition. The Court may approve a petition without a hearing. If the Court schedules a hearing, the Court may require the personal attendance and testimony of the guardian, the treating physician, the representative of the financial institution responsible for the investment of settlement funds or any other evidence which the Court deems necessary to determine whether the proposed settlement adequately protects the minor's interests.(6) The Court may require a hearing on the issue of counsel fees if counsel seeks the recovery of fees in excess of 25% of the gross settlement amount. If a hearing on counsel fees is required, the Court shall require the testimony of counsel primarily responsible for the preparation of the case.(7) Except as otherwise required by the Court, the appearance of the minor shall not be required.(8) The Petitioner shall attach a proposed order found at subsection (c) which sets forth: (i) The Court's authorization for the petitioner to enter into a settlement and release on behalf of the minor;(ii) Reference to the total amount of the settlement;(iii) A complete statement of the distribution of the settlement amount as set forth in the petition;(iv) Identification of the type of account to be utilized, which account shall comply with Pa.R.C.P. 2039, including a provision that no withdrawal shall be made from any such account until the minor attains majority or by a prior order of court;(v) A provision that counsel shall provide the court with an Affidavit of Deposit of Minor's Funds within thirty (30) days from the date of the order. Said affidavit shall be in substantially the form as follows: (CAPTION)
AFFIDAVIT OF DEPOSIT OF MINOR'S FUNDS
The undersigned, counsel for ________________, parents and natural guardians of _____________, a minor, hereby certifies that the net settlement amount of $_______as set forth in this Court's order dated _________was deposited by ________into a restricted, federally insured account, marked "NOT TO BE WITHDRAWN UNTIL THE MINOR REACHES THE AGE OF EIGHTEEN (18), EXCEPT FOR THE PAYMENT OF LOCAL, STATE AND FEDERAL INCOME TAXES ON INTEREST EARNED BY THE SAVINGS ACCOUNT OR CERTIFICATE, IF ANY, OR UNTIL FURTHER ORDER OF THIS COURT" on ___________. Account No. __________is entitled: _____________, a minor. Proof of deposit is attached hereto as Exhibit A.
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Counsel for Parents and Natural Guardians of _______________, a minor
(b) The Court shall, in appropriate cases, authorize the parent or natural guardian to deposit cash to be paid for the benefit of the minor into an interest bearing, restricted account, insured by the Federal government, which conforms to the provisions of Pa.R.C.P. 2039.(c) Form of Proposed Order. The form of proposed order shall be substantially as follows: (CAPTION)
ORDER OF COURT
AND NOW, this _____day of ________, 20___, at _______.m., upon consideration of the Petition for Approval of Minor's Settlement, it is hereby ORDERED and DIRECTED that the Compromise Settlement in the sum of ____________Dollars ($_________) is APPROVED, and that the Settlement be distributed as follows:
1. The sum of _________ Dollars ($_________) shall be paid to __________________for his legal representation of the plaintiff(s).2. The sum of _________ Dollars ($_________) shall be paid to __________________for costs expended.3. The sum of ________Dollars ($_________) shall be distributed to the benefit of ____________, a minor, to be placed in one or more federally insured savings accounts or federally insured savings certificates in the name of the minor so that the amount deposited in any one such savings institution shall not exceed the amount to which accounts are insured, and to be marked "NOT TO BE WITHDRAWN UNTIL THE MINOR REACHES THE AGE OF EIGHTEEN (18), EXCEPT FOR THE PAYMENT OF LOCAL, STATE AND FEDERAL INCOME TAXES ON INTEREST EARNED BY THE SAVINGS ACCOUNT OR CERTIFICATE, IF ANY, OR UNTIL FURTHER ORDER OF THIS COURT". Counsel for petitioners is ORDERED to cause the restricted account to be created and to file an affidavit of deposit of minor's funds within thirty (30) days hereof.
Jurisdiction of any further proceeding concerning the minor's estate is transferred to the Orphans' Court Division for disposition.
Pursuant to Sch. Co. O.C. Rule 12.5B(c), if no withdrawals are made from the account prior to the minor reaching his/her majority, the institution may pay over the funds when the minor attains age eighteen (18) years, upon the joint requests of the natural parent(s) and the former minor without further Order of this Court.
BY THE COURT,
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Amended effective 3/1/2021; revised 2/23/2022; amended effective 2/1/2024.