Client Resources / Settlement Approval
Agreeing a number does not end the case. Where the injured person is a minor or an adult who cannot manage their own affairs, a judge has to approve the settlement, review the legal fees, and decide where the money is held.
Reviewed August 2026The Rules use the phrase "person under disability." It covers two groups: anyone under 18, and an adult who is mentally incapable in respect of an issue in the proceeding within the meaning of the Substitute Decisions Act, 1992.
Rules of Civil Procedure, rule 1.03(1).Because that person cannot instruct a lawyer or bind themselves, the claim is brought by a litigation guardian, usually a parent. Everything below follows from the fact that the person whose claim it is cannot agree to settle it.
This is the part families do not expect. Agreeing a number with the other side does not end the case. A settlement of a claim by or against a person under disability is not binding until a judge approves it, and that is true whether or not a lawsuit was ever started.
Rules of Civil Procedure, rule 7.08(1).Until a judge says yes, there is no settlement. There is only a proposal.
The same applies to a consent judgment. The requirement comes from the court's ancient protective jurisdiction over people who cannot look after their own interests, and the single question the judge asks is whether the settlement is in that person's best interests.
More than the number. The court considers the strengths and weaknesses of the claim, the risks of continuing, the medical evidence, what the money has to last for, and how it will be protected once paid.
It also reviews the legal fees. A contingency fee agreement is not binding on a person under disability without judicial approval either, and it is either approved separately or dealt with as part of the settlement approval motion. In practice this means a judge scrutinizes what we propose to charge, on top of every other protection in this page.
Solicitors Act; O. Reg. 195/04, s. 5.An approval motion is a substantial piece of work, and most of it falls on your lawyer. It requires, among other things, an affidavit from the litigation guardian setting out their position on the settlement, an affidavit from the lawyer setting out theirs, and, where the person is a minor of 16 or older, that young person's own written consent unless the judge orders otherwise.
The material must also address the non-monetary parts of the deal, such as structured payments, care obligations and trust arrangements, and explain why the settlement is fair. Rule 7.08 was amended in 2025 to tighten what has to be put before the court and to improve how sensitive material is handled, so the requirements are more demanding than older guidance suggests.
Rule 7.08(4), as amended by O. Reg. 50/25.Approval motions are usually decided in writing rather than at a hearing, which is generally faster and means the family does not have to attend court.
The judge may direct that the material be served on the Office of the Children's Lawyer, for a minor, or the Public Guardian and Trustee, for an incapable adult, and may ask that office to report with any objections and recommendations.
Rule 7.08(5).If that happens it is not a sign that anything is wrong. It is a second set of eyes on a proposal made on behalf of someone who cannot speak for themselves. It does add time.
Approval is not the end of it. Money payable to a person under disability is paid into court unless a judge orders otherwise, where it is administered by the Accountant of the Superior Court of Justice.
Rule 7.09(1).For a child, funds held in court are generally paid out when they turn 18. Parents cannot simply draw on the money in the meantime, though in defined circumstances an application can be made for funds to be released for the child's benefit.
Payment into court is not the only option, and for a significant recovery it is often not the right one. Alternatives a judge may approve include a structured settlement, which converts the award into guaranteed periodic payments, or payment to a guardian of property appointed to manage the funds. Which is appropriate depends on the size of the settlement and how long the money has to last.
Where the injured person is an adult who cannot manage property, a guardian of property usually has to be appointed before a substantial settlement can be administered, and that is a separate proceeding with its own requirements and its own ongoing duty to account.
It is worth starting that conversation well before the settlement is reached, because leaving it until the money is ready to move adds months.
Three things families should plan around.
Yes. A court that is not satisfied the settlement is in the person's best interests can decline to approve it, or can ask for further evidence before deciding. It happens, most often where the court thinks the amount is too low.
Usually not. These motions are typically brought in writing and decided on the material filed.
Yes. Where the person under disability is a minor aged 16 or older, their written consent to the settlement generally has to be filed unless the judge orders otherwise.
Not freely. Funds held in court are preserved for the child, though an application can be made in defined circumstances for money to be paid out for the child's benefit. Where a structure or a guardian of property is in place, the arrangement approved by the court governs.
Yes. Judicial approval is required whether or not a proceeding has been commenced. Where no action exists, approval is sought by application rather than by motion.
It is part of the work of resolving the claim and is dealt with in the same way as the rest of the file. The court will see exactly what is being charged.
Davidson Cahill Morrison LLP
We act for children and incapable adults in birth injury, medical malpractice and serious injury claims across Ontario, and we deal with the approval process as part of the case rather than as an afterthought.
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