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SF3019 (Legislative Session 94 (2025-2026))

Attorney adviser or guardian ad litem provision in settlement agreements for cases where a party has a brain injury

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to provide additional legal support for individuals involved in settlement agreements when one of the parties suffers from a brain injury. It requires the appointment of an attorney adviser or guardian ad litem to ensure that the interests of the injured party are protected during the settlement process. Additionally, the bill mandates a study on recent changes to structured settlement laws.

Main Provisions

  • Appointment of Legal Advisors: The court must appoint an attorney adviser or guardian ad litem for parties in settlement agreements if one party has a brain injury that results in cognitive impairment.

  • Filing Motion for Appointment: Attorneys representing a client with a diagnosed brain injury must file a motion to appoint a legal advisor if they are aware of the injury before a settlement agreement is reached.

  • Confidential Filings: All documents related to the mental or cognitive impairment are to be filed confidentially.

  • Independent Assessment: The appointed attorney adviser or guardian ad litem will provide an independent assessment to the court about whether the settlement is in the best interest of the injured party. They may consult other professionals if necessary.

  • Cost Limitations: Fees for the appointed attorney adviser or guardian ad litem are capped at $3,000 and may be paid through the settlement or assigned by the court.

  • Factors for Consideration: The legal advisor must consider the injured party's preferences, the settlement's reasonableness, coverage for medical expenses, and effects on the party's financial support capabilities.

  • Report to the Court: The appointed attorney must report their assessment and advice to the court.

Significant Changes to Existing Law

  • Structured Settlement Study: The bill directs the Attorney General to study the impact of the 2022 updates to the structured settlement laws. The aspect of mandatory and discretionary appointments, cases involving minors, and parties with cognitive impairments will be reviewed. This study aims to compile data and assess the impact on structured settlement transfers.

  • Collaboration for Study: The Attorney General is to be assisted by the Chief Justice of the Supreme Court in this study, with a report due by January 15, 2026.

Relevant Terms

  • Attorney adviser
  • Guardian ad litem
  • Settlement agreement
  • Brain injury
  • Cognitive impairment
  • Structured settlement laws
  • Mental capacity
  • Legal advisor fees
  • Confidential filings
  • Independent assessment

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 26, 2025SenateFloorActionIntroduction and first reading
March 26, 2025SenateFloorActionReferred toJudiciary and Public Safety

Citations

 
[
  {
    "analysis": {
      "added": [
        "Requires a study on discretionary appointments."
      ],
      "removed": [],
      "summary": "The bill requires a study on structured settlement transfers focusing on discretionary appointments under section 549.405, subdivision 1.",
      "modified": []
    },
    "citation": "549.405",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        "Requires a study on mandatory appointments."
      ],
      "removed": [],
      "summary": "This bill requires examination of mandatory appointments under section 549.405, subdivision 2, for the structured settlement study.",
      "modified": []
    },
    "citation": "549.405",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Requires a study on motions made."
      ],
      "removed": [],
      "summary": "The bill includes a review of cases where motions were made under section 549.405, subdivision 3, within the structured settlement study.",
      "modified": []
    },
    "citation": "549.405",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "Requires a study on reports filed."
      ],
      "removed": [],
      "summary": "The legislation also includes a study of reports filed under section 549.405, subdivision 4.",
      "modified": []
    },
    "citation": "549.405",
    "subdivision": "subdivision 4"
  }
]

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