The following Personal Injury guidance note provides comprehensive and up to date legal information covering:
Any settlement, compromise or payment arising from a claim on behalf of a protected party is not binding unless it has been approved by the court (usually the Court of Protection).CPR 21.10(1)
A compromise involving a protected party needs to be approved:
first, because the court needs to be satisfied that the compromise is fair: it safeguards protected parties from any mistakes by their legal advisors or from pressure to settle a case quickly for less than it is worth
secondly, because a court-approved compromise protects the defendant, as it ensures that the defendant is properly discharged from the claim
finally, because the court ensures that the money is protected and properly looked after by being invested on behalf of the protected party
Where settlement is reached before proceedings are begun and the sole purpose of proceedings is to obtain the approval of the Court of Protection, the claim must be made using the procedure set out in Part 8 of the Civil Procedure Rules 1998 (alternative procedure for claims) and include a request to the court for approval of the settlement or compromise.
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