Current through Register Vol. 54, No. 12, March 23, 2024
(a) No action for wrongful death in which a
minor or an incapacitated person has an interest shall be discontinued nor
shall the interest of a minor or an incapacitated person in any such action or
in a judgment for damages recovered therein be compromised or settled until the
court, upon petition of any party in interest, shall allow the discontinuance
or approve the compromise or settlement as being fair and equitable.
(b)
(1)
When as the result of a verdict, judgment, compromise, settlement or otherwise
it has been determined that a sum of money is due the plaintiff in an action
for wrongful death, the court, upon petition of any party in interest, shall
make an order designating the persons entitled to share in the damages
recovered and the proportionate share of the net proceeds to which each is
entitled. If a share shall be payable to a minor or incapacitated person, the
court shall designate as the person to receive such share a guardian of the
estate of the minor or incapacitated person qualified to receive the fund if
there is one or one is to be appointed. The share to be received by the
guardian of the estate may include a structured settlement underwritten by a
financially responsible entity that assumes responsibility for future payments
or a trust as described in subdivision (b)(4)(iii) of this rule.
(2) If the minor has no such guardian, and
none is to be appointed, the court upon petition may order an amount not more
than twenty-five thousand dollars ($25,000.00) to be paid for the benefit of
the minor to the guardian of the person or to the natural guardian or to the
person or agency by whom the minor is maintained or to the minor.
(3) If the incapacitated person has no such
guardian, and none is to be appointed, the court upon petition may order an
amount not more than twenty-five thousand dollars ($25,000.00) to be paid for
the benefit of the incapacitated person to the guardian of the person or to the
person or agency by whom the incapacitated person is maintained.
(4) If the minor or the incapacitated person
has no such guardian, and none is to be appointed, the court may order
(i) any amount in cash of a resident or
nonresident minor or incapacitated person to be deposited in one or more
savings accounts in the name of the minor or the incapacitated person in banks,
building and loan associations, savings and loan associations or credit unions,
deposits in which are insured by a Federal governmental agency provided that
the amount deposited in any one such savings institution shall not exceed the
amount to which such accounts are thus insured, or in one or more accounts in
the name of the minor or the incapacitated person investing only in securities
guaranteed by the United States government or a Federal governmental agency
managed by responsible financial institutions. Every such order shall contain a
provision that no withdrawal can be made from any such account until the minor
attains majority or unless the incapacitated person is adjudicated to have
capacity, except as authorized by a prior order of the court. Proof of the
deposit shall be promptly filed of record;
(ii) an agreement be executed providing for a
structured settlement underwritten by a financially responsible entity that
assumes responsibility for future payments. All moneys paid from the structured
settlement during minority or incapacity shall be paid into a restricted
account as provided by subdivision (b)(4)(i) of this rule;
(iii) a trust agreement be executed with a
corporate fiduciary which is independent from the minor or incapacitated person
and anyone acting on behalf of the minor or incapacitated person and is
lawfully authorized to engage in trust business in Pennsylvania or the state of
the minor's or incapacitated person's domicile, which trust
(i) is designated to receive the
fund;
(ii) contains such terms for
investment, disbursement and distribution of the fund as the court deems
proper; and
(iii) expressly
provides that it is subject to the court's continuing jurisdiction, including
the court's right to modify or terminate, for cause shown, although the trust
may be otherwise irrevocable.
(c) In approving a compromise or settlement,
or making any order under Subdivision (b) of this rule, the court may also
approve an agreement for the payment of counsel fees and other proper expenses
out of the share of damages to which the minor or incapacitated person is
entitled.
(d) When an order
designating the persons entitled to share in the damages has been entered, the
defendant may pay the amount due under the verdict, judgment, compromise or
settlement to the plaintiff who shall hold the money as trustee for the persons
designated in the order and shall mark the action discontinued or the judgment
satisfied as the case may be.
