September 12, 2025

The Delaware Superior Court has amended Rule 133 of the Civil Rules. These changes, which took effect September 1, 2025, change the process for approving tort settlements involving minors and persons with disabilities. Key updates include:

• Higher Monetary Threshold: Settlements under $50,000 may be approved on submitted papers without a hearing (unless otherwise ordered). This change codifies the usual Delaware practice that, for settlement amounts at or below $50,000, the Court rules on the Petition after reviewing the moving papers. However, the Rules now make settlement hearings at or above $50,000 mandatory, a substantive change as the Court previously retained the discretion about whether to hold a hearing. Ultimately, this change is designed to create a mandatory threshold for when a hearing must occur, rather than relying upon judicial preferences to mandate a hearing.
• Clearer Fund Handling Rules: The amendments clarify when settlement funds can be placed in:
  • UTMA Accounts: For smaller settlements (up to $25,000), funds may be deposited in a Uniform Transfers to Minors Act account for the minor’s benefit without appointing a guardian.
  • Court-Approved Annuities or Structured Financial Instruments: For larger settlements (in excess of $25,000), funds, either in its entirety or the remaining funds above $25,000, can be placed in secure financial instruments that pay out when the minor reaches majority, again avoiding guardianship unless needed.
  • Combination Approaches: Courts may approve a split between UTMA accounts and structured instruments for flexibility and to protect the minor’s interests. Guardians will only be appointed for good cause and when necessary to protect the estate or maximize benefits for the minor.
• Automatic Sealing of Filings: Settlement petitions and related documents are now automatically filed under seal to protect privacy. This change simplifies the process, as before the Petitioner had to file a simultaneous Motion to File Under Seal, which was always granted, and which was required to protect the sensitive information required for disclosure in a Petition for Approval of Minor Settlement.

These revisions aim to either codify long-standing Delaware practice or simplify and expedite the settlement approval process while maintaining appropriate safeguards.

If you have any questions about these changes, please contact Paul D. Sunshine at psunshine@regerlaw.com or 302-477-7100.