H. B. 4031


(By Delegate Staton)
[Introduced January 13, 2000; referred to the
Committee on the Judiciary.]




A BILL to amend and reenact section fourteen, article ten, chapter forty-four of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to amend and reenact section four, article ten, chapter fifty-six of said code, all relating to compromise of actions and suits in behalf of infants and insane persons.

Be it enacted by the Legislature of West Virginia:
That section fourteen, article ten, chapter forty-four of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that section four, article ten, chapter fifty-six of said code be amended and reenacted, all to read as follows:
CHAPTER 44. ADMINISTRATION OF ESTATES AND TRUSTS.

ARTICLE 10. GUARDIANS AND WARDS GENERALLY.
§44-10-14. Authority of guardian to settle claim of ward for injuries to himself or his property; procedure.

In any case where an infant is injured in his the infant's person or his the infant's property by another, the legal guardian of such infant may negotiate with the person inflicting such injury for the settlement of any claim for damages therefor. But the guardian shall, when proceeding under this section, before making a final settlement where net proceeds to the infant are in excess of ten thousand dollars, file his a petition in equity with the circuit court of the county, or judge thereof in vacation, in which he the guardian was appointed, for permission to settle such claim, in which petition he the guardian shall state the name and age of his the ward, the nature and character of the injury, and the facts relied upon by him the guardian to induce the court or judge to approve such proposed settlement. The court, or judge thereof in vacation, shall appoint a guardian ad litem for the ward who shall answer the petition. Upon the hearing thereof, the court or judge thereof in vacation, may grant or refuse the petition by a proper order, as may seem just and proper. In case the court or judge shall grant the petition, there may be included in such order permission to the guardian to pay to his the guardian's attorney such amount in connection with the settlement of the claim as in the discretion of the court or judge is reasonable and proper, taking into consideration the amount to be paid as damages, the necessities of the infant, the nature of the injury, the probability of recovery in case of suit, the difficulties involved in effecting the settlement, and such other matters as may properly have a bearing on the reasonable compensation to be allowed such attorney. In case the court or judge approves the prayer of the petition, the guardian may be authorized to settle and receive the amount of the settlement, and to execute to the tort-feasor a release therefor. Before so doing he the guardian shall execute a bond in an amount equal to the approved settlement, unless he the guardian be already under bond sufficient for the purpose, with surety or sureties approved by the county clerk, of said court conditioned to account for and pay over the amount of the approved settlement as required by law, which bond shall be filed and recorded by the clerk.
The release to the tort-feasor may be in form or effect as follows:
I, ..............., the guardian of ..............., in consideration of the sum of $.........., and under authority of an order of the circuit court of ........... county, entered on the .......... day of .........., 19....., do hereby release ............... from all claims and demands on account of injuries inflicted upon my said ward (or my said ward's property, as the case may be) by said ............... on the ........ day of .........., 19....., at .......... (here state the place or places).
.............



Guardian of

After receiving such release from the guardian of an infant who has been injured in his the infant's person or in his the infant's property by such person, the tort-feasor shall be forever acquit therefor.
If the legal guardian of an infant negotiates a settlement where net proceeds to the infant are ten thousand dollars or less, the guardian is hereby authorized to settle and receive the amount of the settlement, and to execute to the tort-feasor a release therefor. Before so doing the guardian shall execute a bond in an amount equal to the approved settlement, unless the guardian be already under bond sufficient for the purpose, with surety or sureties approved by the county clerk, conditioned to account for and pay over the amount of the approved settlement as required by law, which bond shall be filed and recorded by the clerk and remain in effect until the injured infant reaches twenty years of age.
Nothing in this section contained shall be construed as preventing any tort-feasor from settling any such claim in any of the modes now recognized by law.
CHAPTER 56. PLEADING AND PRACTICE.

ARTICLE 10. MISCELLANEOUS PROVISIONS RELATING TO PROCEDURE.
§56-10-4. Compromise of actions and suits in behalf of infants and insane persons and disbursement of funds arising therefrom.

In any action or suit wherein an infant or insane person is a party, the court in which the same is pending, or the judge thereof in vacation, shall have the power to approve and confirm a compromise of the matters in controversy on behalf of such infant or insane person, if such compromise shall be deemed to be to in the best interest of the infant or insane person. Such approval or confirmation shall never be granted except upon written application therefor by the guardian, committee, curator or next friend of the infant or insane person, setting forth under oath all the facts of the case and the reasons why such compromise is deemed to be for in the best interest of the infant or insane person. And the court or judge, before approving such compromise, shall, in order to determine whether to approve or disapprove the compromise, hear the testimony of witnesses relating to the subject matter of the compromise and cause said testimony to be reduced to writing and filed with the papers in the case. The court or judge, upon approving and confirming such compromise, shall enter judgment or decree accordingly. Such judgment or decree shall bind the respective parties thereto, including such infant or insane person, with like force and effect, and shall be subject to review, modification or reversal to the same extent only, as if it were a consent judgment or decree, entered under similar circumstances, in a case in which all the parties were adults and sane. In any such compromise wherein the amount paid to the guardian or committee does not exceed the sum of ten thousand dollars, the court or judge approving and confirming the compromise and entering judgment or decree thereon may, in its or his discretion, dispense with or withdraw a reference to a fiduciary commissioner as to said compromise, authorize the disbursement of the fund so created by the compromise and may discharge the guardian or committee and the surety on his bond as to the proceeding then pending in the circuit court, and in all such cases a certified copy of the order of the court or judge, as the case may be, shall be recorded in the office of the clerk of the county commission wherein the guardian or committee was appointed.



NOTE: The purpose of this bill is to require court approval for infant settlements in excess of ten thousand dollars and to make certain clarifying changes relating to court approval of the compromise of actions involving infants and insane persons.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.