In Ontario, any wrongful death settlement involving a minor child under 18 cannot be finalized privately. It must be reviewed by the Office of the Children’s Lawyer (OCL) and officially approved by a judge at the Superior Court of Justice to ensure the child’s financial future is fully protected.
When a parent or sibling tragically passes away in a motor vehicle accident, the surviving children are entitled to compensation under Ontario’s Family Law Act. They have suffered an immeasurable loss of care, guidance, and financial support. However, minors under the age of 18 are not legally capable of signing a binding settlement agreement with an insurance company. 👦
To prevent unfair settlements and ensure that surviving parents or guardians do not misappropriate the funds, the province has instituted strict legal safeguards. Whether your family lives in Brampton, Mississauga, or anywhere else in Ontario, the Office of the Children’s Lawyer (OCL) plays a mandatory role in overseeing these payouts. Let us examine how the court approval process works to secure a minor’s financial settlement.
Step-by-Step Process in Brampton, Ontario
The process of obtaining court approval is governed by Rule 7 of the Ontario Rules of Civil Procedure. Your personal injury law firm will handle the heavy lifting, but understanding these steps will give your family peace of mind during a turbulent time. 📍
Step 1: Reaching a Proposed Settlement
First, your lawyer will negotiate with the at-fault driver’s insurance company to reach a tentative settlement amount for the entire family. This total settlement will be divided among the eligible family members, allocating a specific portion to each minor child for their unique loss of guidance and future support. Until a judge signs off on it, this agreement is strictly “proposed.”
Step 2: Submitting Materials to the OCL
Once a proposed amount is reached, your lawyer must serve a detailed package of documents to the Office of the Children’s Lawyer in Toronto. This package includes an affidavit from the surviving parent, an affidavit from your lawyer explaining why the settlement is fair, and details on how the legal fees are being deducted. The OCL will review these files to ensure the child is getting a fair share compared to the adults. 📁
Step 3: Filing a Motion for Court Approval
After the OCL provides a letter of non-opposition (or makes recommendations for changes), your lawyer will file a formal Motion for Court Approval at the A. Grenville and William Davis Courthouse in Brampton. A Superior Court judge will review the OCL’s findings and officially order the settlement to be binding.
Step 4: Securing the Funds
The judge will direct exactly what happens to the child’s money. Typically, the funds are paid directly into court, where they are managed by the Accountant of the Superior Court of Justice until the child turns 18. Alternatively, for larger settlements, the judge may approve the purchase of a tax-free structured settlement annuity that pays out in phases when the child reaches early adulthood.
How Much Does it Cost in Ontario?
The involvement of the OCL and the courts adds an extra administrative layer, but it does not significantly burden the family’s out-of-pocket finances. 💵
- OCL Review: The review conducted by the Office of the Children’s Lawyer is a free provincial government service designed to protect minors.
- Court Motion Fees: Filing the motion for approval at the Brampton courthouse carries a nominal government fee, usually covered as a disbursement by your law firm.
- Lawyer Fees: Your lawyer’s contingency fee applies, but importantly, the judge and the OCL will scrutinize the lawyer’s bill. The legal fees deducted from the minor’s portion of the settlement must be deemed fair and reasonable by the court before they are approved.
How Long Does the Process Take?
Obtaining a minor settlement approval requires patience, as it adds several months to the end of your wrongful death claim process.
Once a tentative settlement is reached, the OCL generally takes between 30 to 90 days to review the affidavits and provide their response. Following that, booking a motion hearing with a judge in Brampton can take an additional 2 to 4 months, depending on the current court backlog. Overall, expect the approval process to add about 4 to 6 months to the timeline.
Frequently Asked Questions (FAQ)
Can the surviving parent use the child’s settlement money for daily expenses?
Generally, no. The funds are held securely by the court or in an annuity. However, if the surviving parent faces extreme financial hardship, they can apply to the court to release a portion of the funds for the specific maintenance, education, or benefit of the child. This is rarely granted for standard living expenses.
At what exact age does the child receive the money?
If the money is held by the Accountant of the Superior Court of Justice, the child will automatically receive a cheque for the full amount, plus accumulated interest, on their 18th birthday.
What is a structured settlement for a minor?
A structured settlement is an insurance product (an annuity) that pays out the settlement over time rather than in a single lump sum. For a minor, the judge might approve a structure where they receive portions of the money at ages 18, 21, and 25, helping to ensure they do not spend a large sum irresponsibly at 18.
What happens if the OCL thinks the settlement is too low?
If the OCL believes the insurance company is shortchanging the minor, or if they feel the adult family members are taking too large of a percentage, they will object. Your lawyer will then need to either renegotiate with the insurer, adjust the family’s distribution, or argue the case before the judge.
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