LAWSUIT SETTLEMENT APPROVAL PROCEDURE
DECEDENT’S ESTATE CASES
The following requirements/procedures will be followed to process a petition to approve
a litigation settlement in decedent’s estate cases:
- A sworn petition providing details of the proposed settlement must be filed.
- If the Court has not previously determined the heirs and next of kin of the decedent,
the heirs at law and next of kin of the decedent must be identified with address
and their status (adult or minor) and mental capacity (if adult) in either the petition
or an Exhibit A attached to the petition. If the Court has previously determined
the heirs and next of kin of the decedent, only the details of the proposed settlement
are requested.
- If the Court has not previously determined the heirs and next of kin of the decedent,
the petition should be executed by someone having first-hand information and knowledge
about the heirs and next of kin and said persons’ relationship to the decedent.
Alternatively, this information can be furnished in a separate affidavit submitted
with the petition.
- If approval of attorney’s fees and expenses are requested, the petition should address
the 12 Peebles factors (as appropriate in the given case) and include an
itemization of the time expended - as required by decisions of the Alabama Supreme
Court.
- If another court has approved the settlement (and attorney’s fees and expenses)
a copy of said order should be attached to the petition and there is no need to
address the 12 Peebles factors (as appropriate) or furnish an itemization
of the time expended.
- The terms of a settlement can be kept confidential by submitting the terms in
separate correspondence (not a pleading) addressed to the Court and noting in
the petition that the terms of the settlement are confidential. In such instances
the material will be returned to the petitioner’s lawyer after review by the Court.
- If all of the distributees are adults and of sound mind the Court will consider
the petition without a hearing.
- If a guardian ad litem objects to the proposed settlement, the petition will be
set for hearing. At such hearing appropriate testimony should be offered in support
of the petition, approval of attorney’s fees and expenses (if requested). Affidavits
will be accepted in lieu of in-court testimony if there is no objection by the guardian
ad litem.
- If all of the distributees are adults and of sound mind the Court will consider
the petition without a hearing.
- If one or more of the distributees is a minor or an adult with unsound mind, the
Court will appoint a guardian ad litem to represent the interests of said minor
or adult. If a guardian ad litem was utilized in the other court handling the litigation,
if we are furnished the name of said guardian ad litem we will attempt to use the
same person as the guardian ad litem in the matter before the Court. The
Court will afford the guardian ad litem(s) two weeks to complete their assigned
task(s). If the guardian litem(s) consents in writing to the petition being granted,
the Court will consider the petition without a hearing. If the guardian ad litem(s)
does not complete the assigned task(s) within two weeks, the petition will be set
for a hearing.
- If one or more of the distributees is on active military duty status, a special
attorney will be appointed to represent said distributee(s). If the special attorney
consents to the petition being granted in writing, the Court will consider the petition
without a hearing. The Court will afford the special attorney a reasonable period
of time to complete their assigned task. If the special attorney does not communicate
with the Court within two weeks of the assignment, the Court will contact the special
attorney to ascertain the status of the matter and how much time the special attorney
needs to complete the assigned task. If necessary, a hearing will be scheduled.
- If a distributee or a guardian ad litem objects to the proposed settlement, the
petition will be set for hearing. At such hearing appropriate testimony should be
offered in support of the petition, approval of attorney’s fees and expenses (if
requested) and to establish the heirs at law and next of kin. Affidavits will be
accepted in lieu of in-court testimony if there is no objection by a distributee
or guardian ad litem
- Typically, if the litigation settlement is approved, legal counsel for the personal
representative will be directed to oversee consummation of the settlement agreement,
hold the settlement proceeds in the legal counsel’s trust account until such time
that disbursement can be made, and file a report of compliance within 30 to 60 days.
If the personal representative will be receiving, holding and disbursing the settlement
proceeds, the personal representative’s bond will have to be reviewed and may have
to be increased before the order approving the litigation settlement is issued.
- The ruling of the Court approving a litigation settlement will be mailed by United
States First Class Mail to all heirs at law, next of kin reflected in the Court’s
file and legal counsel, with such mailings noted in the Court’s docket.
- The person receiving, holding and distributing the settlement proceeds will be required
to furnish a report of compliance with copies of appropriate documentation to support
said report. A tracking date of 60 days will be set to monitor compliance.
- Unless there is an objection to a proposed litigation settlement, there will be
no appeal time applicable. If the Court is required to rule upon an objection a
42 day appeal time will apply.
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