If the claims being settled are part of an existing action, the parties should file a motion (or “petition”) in the action seeking a judgment approving settlement. But before a court may approve a minor’s settlement it must have jurisdiction over the underlying action. North Carolina courts have “inherent authority over the property of infants and will exercise this jurisdiction whenever necessary to preserve and protect children’s estates and interests.” Creech, 147 N.C. 366, 370 (1946) (minor’s welfare is the “guiding star”) Reynolds v. The investigation must focus on the minor’s welfare and fairness to the minor under the circumstances. The purpose of the court’s review is to protect the interests of the minor. The rule applies not just to claims settled after an action is filed, but also to pre-litigation settlements including waivers of a minor’s right to sue. Even if the settlement is arranged by a parent, guardian, guardian ad litem, estate administrator, or attorney, the minor cannot be bound absent prior court approval. The settlement, however, is not enforceable against the minor unless it has first been investigated and approved by the court.
(A claim for reimbursement of the minor’s medical expenses typically belongs to the parents.) Although minors generally are legally incapable of binding themselves to contracts, the law allows a minor’s claims to be resolved through a settlement agreement. A minor injured through negligence or other wrongdoing may bring an action through a representative to recover damages for pain and suffering, permanent injury, and impairment of earning capacity.