Rule 2039 - Settlement, Compromise and Discontinuance of all Non-Death Action Cases in Which Minors Have an Interest(a) All actions in which a minor has an interest, except wrongful death and survival actions governed by Leh.R.C.P. 2206, shall not be settled, compromised, or discontinued until entry of a decree in the civil division or orphans' court division of this court as hereinafter provided, upon petition in accordance with this rule.(b) If suit has been instituted in the civil division of this court, all petitions for settlement, compromise or discontinuance of a minor's action shall be handled by the administrative judge of the orphans' court division, unless the civil judge assigned to the case directs otherwise.(c) If no suit has been instituted and if the minor is a Lehigh County resident, all petitions for settlement, or compromise of a minor's claim shall be handled by the administrative judge of the orphans' court division.(d) Contents of Petitions (1) Regarding non-structured settlements: (i) the minor's name, date of birth and where and with whom s/he currently resides;(ii) the names and addresses of both of the minor's parents;(iii) delineation of the factual circumstances of the case; i.e. date of accident/injury, how it occurred; identification of defendants, etc.(iv) the nature and extent of the minor's injuries; the current diagnosis of and prognosis for the minor's condition.(v) the gross amount of the settlement and whether or not it represents policy limits.(vi) if the settlement amount proposed to the minor is a portion of a gross figure allocated among others injured in the same accident (even if adults) the names of those persons, their relationship to the minor, the nature and extent of their injuries and the amount of their proposed recoveries.(vii) the total amount of medical costs incurred and how paid.(viii) the nature and amount of any subrogation or Department of Public Welfare lien proposed to be paid from the settlement proceeds.(ix) the amounts of the proposed legal fee and of costs proposed to be paid to counsel from the settlement proceeds.(x) explanation of and justification for any amount proposed to be paid from the settlement proceeds to a parent or parents of the minor.(xi) whether or not it is anticipated that a judicial determination of capacity will be necessary when the minor attains majority.(xii) the name and address of a bank or credit union doing business in Lehigh County where amounts payable during minority will be placed in an interest-bearing savings account, money-market account, or certificate of deposit entitled in the minor's name alone; or the name and date of appointment of a corporate guardian of the estate who will administer the minor's funds.(xiii) whether or not non-disclosure of the terms is a condition of the settlement; and if so, a request that the petition and decree be sealed.(2) Regarding structured settlements: (i) All of the information required by subsection (1) of this section (d) that is factually applicable except the gross settlement figure, which shall not appear in the petition; and(ii) the name of the company issuing the annuity that will fund the structure together with its rating by 2 of the following: A.M. Best Company; Standard & Poor; Moody; or Duff& Phelps.(iii) the same information as in subsection (ii) above, regarding any guarantors of the structure.(iv) the duration for which the future payments are guaranteed, and the names and relationship to the minor of the contingent beneficiaries of the guaranteed payments.(v) that the right to alter the contingent beneficiary designation (in the manner prescribed by the issuer) is reserved to the minor upon attainment of majority.(vi) the amount, if any, of cash presently payable to the minor.(e) Exhibits to Petitions for Approval of Settlement (Structured and Non-Structured)
(1) An itemization of costs to be reimbursed (including orphans' court filing fees to be incurred by compliance with section (g) of this rule and regarding Filing of Petitions and Decrees).(2) A copy of contingency fee agreement.(3) Written evidence of Department of Public Welfare or any other subrogation lien proposed to be paid from the settlement proceeds.(4) A medical report or opinion that contains a description of injury, course of treatment, recovery and prognosis.(5) Consent and joinder of a parent and natural guardian of the minor who is not a petitioner; or, proof of service of a copy of the petition upon such parent.(6) A copy of the release.(f) Disposition of Petitions: In all cases whether or not suit has been instituted. (1) Submission A copy of the petition, with exhibits shall be submitted (by mail, telefax or hand delivery) to the orphans' court counsel. After review, the orphans' court counsel will contact counsel for petitioner to schedule a date for presentation. The petition shall not be filed prior to presentation to the court.
(2) Presentation Formal presentation is required in all cases unless excused by the court. Attendance at presentation is required of the minor and both parents unless the non-appearing parent:
(i) is a co-petitioner; or(ii) has signed a consent and joinder to petition; or(iii) has been served with a copy of the petition and notice of its presentation; or(iv) is unable to be located after efforts deemed satisfactory to the court.(3) Accompanying Documents The petition, in addition to the requisite exhibits, shall, when submitted, be accompanied by:
(i) a proposed decree which: approves the settlement as set forth in the petition; directs that the petitioner's counsel deposit proceeds payable during minority to an interest-bearing restricted account in the minor's name, at a federally insured bank or credit union doing business in Lehigh County. directs the distribution of future payments, if any, due under terms of an annuity contract. names the contingent beneficiaries of guaranteed payments, reserving the right to alter the designation to the minor upon attainment of majority. directs that a time-stamped copy of the decree filed in the civil division be filed with the clerk of orphans' court division to establish a separate orphans' court file and number. provides for the filing of affidavits of deposit, affidavits of payment, and/or affidavits of purchase with the clerk of the orphans' court division under the orphans' court caption and number. authorizes plaintiff's counsel to mark the civil docket, if any, settled, discontinued and ended. (ii) if non-disclosure of terms is a condition of settlement, a separate confidentiality order.(iii) if the settlement is structured, a letter from counsel disclosing the gross settlement figure and cost of the annuity funding the structure.(g) Filing of Petitions and Decrees (1) In all cases where suit has been instituted, upon entry of a decree after formal presentation, counsel for petitioner shall:(i) file the original decree, petition and exhibits with the clerk of courts; and(ii) file as many time-stamped copies of the decree(iii) as there are minor recipients of settlement proceeds (structured or non-structured) with the clerk of the orphans' court division in order to obtain a separate orphans' court file number for each minor; and(iv) obtain from the clerk of the orphans' court division as many separate affidavits of deposit as there are minors receiving cash payments during minority; and(v) file with the clerk of the orphans' court division a separate affidavit of deposit evidencing establishment of a restricted account for each minor recipient of current settlement proceeds under the orphans' court caption and file number; and/or(vi) file with the clerk of the orphans' court division a sworn acknowledgment by an authorized official of the issuer that an annuity contract was purchased to provide the payments set forth in the decree approving a structured settlement.(2) In all cases where no suit was instituted and the minor is a Lehigh County resident, upon entry of a decree after formal presentation, counsel for petitioner shall: (i) file a separate original decree, petition and exhibits regarding each minor, with the clerk of the orphans' court division; and(ii) obtain from the clerk of the orphans' court division an affidavit of deposit for each such separate set of pleadings filed per (i) above; and(iii) file with the clerk of the orphans' court division, a separate affidavit of deposit evidencing establishment of a separate restricted account for each minor recipient of current settlement proceeds and a certification of compliance with order establishing restricted account; and/or(iv) file with the clerk of the orphans' court division, a sworn acknowledgment by an authorized official of the issuer that an annuity contract was purchased to provide the payments set forth in the decree approving a structured settlement.Amended effective 1/1/2020; amended effective 7/1/2023.