Bill Text: MS HB864 | 2022 | Regular Session | Introduced

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Bill Title: MS Statutory Thresholds for Settlements Involving Minors Act; create with affidavit requirements.

Spectrum: Partisan Bill (Independent 1-0)

Status: (Failed) 2022-02-01 - Died In Committee [HB864 Detail]

Download: Mississippi-2022-HB864-Introduced.html

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MISSISSIPPI LEGISLATURE

2022 Regular Session

To: Judiciary A

By: Representative Cockerham

House Bill 864

AN ACT TO CREATE THE MISSISSIPPI STATUTORY THRESHOLDS FOR SETTLEMENTS INVOLVING MINORS ACT; TO SET FORTH THE PURPOSE OF THE ACT; TO PROVIDE WHEN A PERSON HAVING LEGAL CUSTODY OF A MINOR MAY ENTER INTO A SETTLEMENT AGREEMENT WITH A PERSON AGAINST WHOM THE MINOR HAS A CLAIM; TO PROVIDE HOW MONIES SHALL BE PAID; TO PROVIDE LIABILITY PROTECTION FOR CERTAIN PERSONS ACTING IN GOOD FAITH; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  This act shall be known and may be cited as the "Mississippi Statutory Thresholds for Settlements Involving Minors Act."

     SECTION 2.  The purpose of this act is to set forth standards and procedures for settling claims involving minors.

     SECTION 3.  (1)  Any person having legal custody of a minor, or if no custody has been determined, any parent or natural guardian, may enter into a settlement agreement with a person or entity against whom the minor has a claim if:

          (a)  A conservator or guardian has not been

appointed for the minor;

          (b)  The total amount of the settlement, not including reimbursement of medical expenses, liens, reasonable attorney fees and costs of suit, is Twenty-five Thousand Dollars ($25,000.00) or less if paid in cash, by check, draft, or if paid by the purchase of a premium for an annuity;

          (c)  The monies payable under the settlement agreement will be paid as set forth in subsections (3) and (4) of this section; and

          (d)  The person entering into the settlement agreement on behalf of the minor completes an affidavit or verified statement that attests the person understands they have the right to choose to settle the minor's claim by presenting it to the chancery court for its review and approval, but has chosen to settle the minor's claim under this section, and that:

               (i)  To the best of the person's knowledge, the

minor will be fully compensated by the settlement; or

               (ii)  The person has made a reasonable inquiry that

there is no practical way to obtain additional amounts from the party or parties entering into the settlement agreement with the minor.

     (2)  The attorney representing the person entering into the settlement agreement on behalf of the minor, if any, shall maintain the affidavit or verified statement completed under subsection (1)(d) of this section in the attorney's file for two (2) years after the minor attains the age of majority.

     (3)  The monies payable under the settlement agreement shall be paid as follows:

          (a)  If the minor or person entering into the settlement agreement on behalf of the minor is represented by an attorney and the settlement is paid in cash, by check, draft, or by direct deposit, into the attorney's trust account maintained pursuant to rules of professional conduct adopted under the Mississippi Rules of Professional Conduct to be held for the benefit of the minor, the attorney shall timely deposit the monies received on behalf of the minor directly into a federally insured restricted savings account that earns interest, in the sole name of the minor, and provide notice of the deposit to the minor and the person entering into the settlement agreement on behalf of the minor.  Notice shall be delivered by personal service or first class mail.

          (b)  If the minor or person entering into the settlement agreement on behalf of the minor is not represented by an attorney and the settlement is paid:

               (i)  In cash, by check, or by draft, the monies shall be deposited by the person entering into the settlement agreement on behalf of the minor directly into a federally insured restricted savings account that earns interest, in the sole name of the minor;

               (ii)  By direct deposit, the minor or person

entering into the settlement agreement on behalf of the minor

shall provide the person or entity with whom the minor has settled the claim with the information sufficient to complete an

electronic transfer of settlement funds within ten (10) business days of the settlement into a federally insured restricted savings account that earns interest, in the sole name of the minor.  The notice to the minor of the electronic transfer of funds shall be delivered by personal service or first class mail to the minor and person entering into the settlement agreement on behalf of the minor, by the person or entity against whom a minor has a claim that settles the claim with a minor, and provide notice of the deposit to the minor and the person entering into the settlement agreement on behalf of the minor.  Notice shall be delivered by personal service or first class mail; or

               (iii)  If paid by purchase of an annuity, then by

direct payment to the provider of the annuity with the minor

designated as the sole beneficiary of the annuity.

          (c)  If the minor is a ward of the state, then the

settlement shall be paid in cash, by check, draft, or by depositing the funds directly into a trust account, or subaccount of a trust account, established in accordance with the court order for the purpose of receiving monies payable to the ward under the settlement agreement and that earns interest for the benefit of the ward.

     (4)  The monies in the minor's federally insured restricted

savings account that earns interest, trust account or trust

subaccount established under subsection (3) of this section may not be withdrawn, removed, paid out or transferred to any person,

including the minor, except as follows:

          (a)  Pursuant to court order,

          (b)  Upon the minor's attainment of majority, or otherwise emancipated, or

          (c)  Upon the minor's death.

     (5)  A signed settlement agreement entered on behalf of the

minor in compliance with subsection (1) of this section is binding on the minor without the need for court approval or review, and has the same force and effect as if the minor were a competent adult entering into the settlement agreement, and will serve to fully release all claims of the minor encompassed by the settlement agreement.

     (6)  A person acting in good faith on behalf of a minor under

this section is not liable to the minor for the monies paid in settlement or for any other claim arising out of the settlement.

     (7)  Any person or entity against whom a minor has a claim that settles the claim with a minor in good faith under this section shall not be liable to the minor for any claims arising from the settlement of the claim.

     (8)  Any person that transfers funds or other property under this section shall not be responsible for its proper application.

     SECTION 4.  This act shall take effect and be in force from

and after its passage.