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Legislature backs streamlined process for small settlements to minors, raises threshold to $40,000
Summary
Lawmakers adopted a committee amendment to LB341 to permit custodians to settle claims for minors without court approval when the settlement is $40,000 or less and to clarify other procedural protections; the bill advanced to E & R initial.
Senator Mervin Hallstrom introduced LB341, seeking to adopt the Nebraska Statutory Thresholds for Settlements Involving Minors Act, a model derived from the National Conference of Insurance Legislators (NCOIL). The measure would allow a person with legal custody to enter into a settlement on behalf of a minor without district court approval if the settlement amount (excluding medical costs, attorney fees and costs) is at or below a statutory threshold.
The Judiciary Committee amendment (AM176), described by Senator Bosin, increases the threshold from $35,000 to $40,000 to conform with another Nebraska statute (section 30‑2603) and adjusts definitions and procedural language. The amendment also clarifies the minor’s age definition to align with other statutes (defining minor as a person under 19) and preserves an avenue to seek court approval in county court as needed.
Senator Hallstrom said the current court process to obtain a guardianship or conservatorship and court approval for a minor’s settlement is "needlessly complicated and a waste of valuable judicial resources," and argued the bill would provide a faster process while retaining protections for minors. Some floor speakers, including Senator McKinney and Senator Hunt, expressed concern about situations where a minor or custodian might lack legal representation and whether vulnerable minors would receive adequate advocacy; Hallstrom and Bosin noted the bill does not prevent parties from seeking counsel and that different safeguards apply when a minor is a ward of the state.
The committee amendment was adopted on the floor (clerk recorded 35 ayes, 0 nays) and LB341 advanced to E & R initial (clerk recorded 39 ayes, 0 nays). Sponsors said the statutory change will let routine, lower‑value settlements be completed without full court proceedings while retaining protections in other scenarios.
