February 24, 1998


95-24


Amendment of Subchapter
2.400 of the Michigan
Court Rules
_________________________

          On order of the Court, notice of proposed changes
having been provided, and consideration having been given to the
comments received in response to that notice, the following
amendment of subchapter 2.400 of the Michigan Court Rules is
adopted to be effective May 1, 1998.

[The present language is amended as indicated below.]

ICLE Editor's Note:

RULE 2.420  SETTLEMENTS FOR MINORS AND INCOMPETENT PERSONS

(A)  Applicability.  This rule governs the procedure to be
     followed for the entry of a consent judgment, a
     settlement, or [the entry of] a dismissal
     pursuant to settlement in an action brought for a minor
     or an incompetent person by a next friend, guardian,
     or conservator.  Before an action is commenced, the
     settlement of a claim on behalf of a minor or an
     incompetent person is governed by the Revised Probate
     Code.

(B)  Procedure.  In actions covered by this rule, a proposed
     consent judgment, settlement, or dismissal pursuant
     to settlement must be brought before the judge to whom the
     action is assigned, and the judge shall pass on the fairness
     of the proposal.

(1)  If the claim is for damages because of personal injury
     to the minor or incompetent person,

(a)  the minor or incompetent person shall
     appear in court personally to allow the judge an
     opportunity to observe the nature of the injury
     unless, for good cause, the judge excuses the
     minor's or incompetent person's presence,
     and

(b)  the judge may require medical testimony, by
     deposition or in court, if not satisfied of the
     extent of the injury.

(2)    If the next friend, guardian, or conservator is a
     person who has made a claim in the same action and will
     share in the settlement or judgment of the minor or
     incompetent person, then a guardian ad litem for the
     minor or incompetent person must be appointed by the
     judge before whom the action is pending to approve the
     settlement or judgment.

(3)     If a guardian or conservator for the
     minor or incompetent person has been appointed
     by a probate court and the amount of the proposed
     settlement exceeds the amount of the guardian's
     or conservator's bond, the terms of the proposed
     settlement or judgment may be approved by the court in
     which the action is pending, but no judgment or
     dismissal may enter until the probate court has passed
     on the sufficiency of the bond.

([3]4)  The following provisions apply to
     settlements for minors. 

(a)     If the settlement or judgment requires
     payment of more than $5,000 to the minor either
     immediately, or if the settlement or judgment is
     payable in installments in any single year during
     minority, a conservator must be appointed by the
     probate court before the entry of the judgment or
     dismissal.

          ([4]b)     If the settlement or
     judgment does not require payment of more than
     $5,000 to the minor in any single year, the money
     may be paid in accordance with the provisions of
     MCL 700.403; MSA 27.5403.

          Staff Comment:  The May 1998 amendment of MCR
2.420 was based on a recommendation from the Michigan Judges
Association to resolve the potential conflict that arises when a
spouse serves as guardian or conservator for an incompetent
person and settles a personal-injury lawsuit with a consortium
claim.  In such a circumstance, the rule requires that a guardian
ad litem be appointed.  A like change was made with regard to the
settlement of lawsuits involving minors. 


The staff comment is published only for the benefit of the bench
and bar and is not an authoritative construction by the Court.