Minors. D.VG (a minor) was injured in a one-car auto accident in Hoover. Alabama
ID: 2426127 • Letter: M
Question
Minors. D.VG (a minor) was injured in a one-car auto accident in Hoover. Alabama. The vehicle was covered by an insurance policy issued by Nationwide Mutual Insurance Company. Stan Brobston, D.VG.'s attorney, accepted Nationwide's offer of $50,000 on D.V.G.s behalf. Before the settlement could be submitted to an Alabama state court for approval. D.VG. died from injuries received in a second, unrelated auto accident. Nationwide argued that it should not be bound by the settlement, because a minor lacks the capacity to contract and thus cannot enter into a binding settlement without court approval. Was Nationwide bound to the settlement? Explain.Explanation / Answer
Answer: An insurance company is bound to a settlement agreement negotiated on behalf of an injured minor, even if that minor dies before the scheduling of the court hearing that all parties agreed was necessary to obtain approval of the settlement agreement. In accordance with the parties' understanding, such a hearing is still required, and the minor's death does not render that hearing impossible. We thus answer in the affirmative the question certified to this Court.
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