When is court approval required for the settlement of a civil case?

Court approval is required in the following situations. Whenever court approval is sought, the court commonly reviews additional matters such as the reasonableness of attorney fees, the expenses incurred, and whether payments made for the benefit of minors or incapacitated persons are being properly handled.

• Settlements involving a minor or incapacitated person:
Minors and incapacitated persons do not have the legal capacity to enter into binding contracts, including settlement agreements. Court approval is recommended to ensure the settlement is reasonable and to protect all parties from future claims by the minor or incapacitated person. In very small cases, clients may make a business judgment that the risk of a later challenge is low enough that court approval is not worth the additional cost.

• Medical malpractice settlements involving payment by the Kansas Health Care Stabilization Fund: If the Kansas Health Care Stabilization Fund is contributing to a settlement, court approval is required. The court must specifically find that the settlement is “valid, just and equitable” under Kansas law (K.S.A. 40-3410), and will also review the reasonableness of attorney fees (K.S.A. 7-121b).

• Wrongful death settlements:
Court approval of the settlement itself is not required. However, the court must hold a hearing to apportion the settlement among the heirs (K.S.A. 60-1905).