Why do some settlements need court approval?
If, at the time of the settlement, the injured person is under a legal disability (that is, they cannot act for themselves in a legal capacity):
- because they are under the age of 18 years, or
- due to physical or intellectual impairment, they are unable to give sufficient instructions,
court approval is required before an agreed settlement can be finalised.
Seeking court approval
The CTP Insurer must advise the injured person’s litigation guardian (usually a parent or legal guardian acting on the injured person’s behalf; in some cases the Public Trustee may be appointed) or legal representative to obtain court approval.
To facilitate the court approval process and the payment of settlement funds, independent legal advice may be sought. The CTP Insurer must notify the litigation guardian that legal fees and court costs associated with court approval can be recovered from the CTP Insurer.
You should speak to the CTP Insurer or your legal representative for more information about the court approval process and claiming relevant legal costs.