A minor accident benefits settlement in Ontario may raise court-approval and protection questions, and the answer should be treated as fact-specific. Parents or guardians should preserve the offer, understand the child’s rights and obtain advice before accepting. This guide explains the issues and the approval process that may apply.
Key takeaways: Keep the settlement offer and supporting records, ask whether approval is required, and consider how funds will be protected for the child.
Why court approval exists
Under the Rules of Civil Procedure, children and other people under a legal disability receive special protection. Rule 7.08 generally addresses court approval of settlements involving a person under disability. The purpose is protective: a judge reviews whether the settlement is reasonable and how the money will be managed until the child reaches adulthood.
These protections exist for good reasons. Children cannot evaluate their own claims, injuries in children may evolve over time, and a settlement that seems reasonable today may prove inadequate later. Court review is intended to prevent improvident settlements.
Accident benefit disputes are handled differently
Most accident benefit disputes in Ontario are decided by the Licence Appeal Tribunal (LAT), not the courts. The Insurance Act and the Statutory Accident Benefits Schedule set out a separate framework for these claims. This difference is at the heart of the recent disagreement.
Borok v. Primmum Insurance Company (2025)
In Borok v. Primmum Insurance Company, 2025 ONSC 6881, the court considered whether a settlement of a minor’s accident benefits claim required approval under rule 7.08. The court concluded that it did not because accident benefit disputes are governed by the Insurance Act framework and the LAT, and the Superior Court therefore lacked jurisdiction to approve the settlement under the Rules.
Gomez v. The Personal Insurance Company (2025)
Shortly afterwards, in Gomez v. The Personal Insurance Company, 2025 ONSC 7049, Regional Senior Justice Firestone declined to follow Borok. The decision discussed horizontal stare decisis, the principle that judges of the same court generally follow each other’s decisions unless there is a good reason not to. The reasoning and outcome in Gomez should be considered when assessing its effect.
What this means for families
When two judges of the same court reach different conclusions, the law is unsettled until an appellate court, or further decisions, provide clarity. Further guidance may already exist or may emerge, so the current state of the law should be confirmed at the time of any settlement. In the meantime:
• insurers and lawyers may take different approaches to minors’ accident benefit settlements;
• some may still seek court approval as a precaution, while others may rely on Borok;
• the enforceability of a settlement reached without approval could be questioned later.
Practical steps for parents and guardians
• Do not sign a settlement of your child’s accident benefits claim without independent legal advice.
• Ask how the settlement amount was calculated and what future benefits are being given up.
• Ask whether court approval will be sought and, if not, why not.
• Ask how the money will be held, for example whether it will be paid into court or otherwise protected until the child turns 18.
• Keep complete medical records; children’s injuries can change as they grow.
• Consider whether a separate claim against an at-fault driver also exists, as that claim will normally require court approval to settle.
Why settlement may or may not make sense
Settling an accident benefits claim usually means giving up the right to future benefits in exchange for a lump sum. For a child, this decision can be especially significant. A child’s injuries may affect development, education and future employment in ways that are not yet known. Future medical, rehabilitation and attendant care needs may be difficult to predict. On the other hand, a settlement may provide certainty and avoid ongoing disputes. Weighing these factors requires information about the child’s prognosis and the value of the benefits being released.
A person who settles an accident-benefits claim may have a short period to rescind the settlement. The insured may rescind within two business days, and the insurer must provide prescribed written notice. See https://www.bogoroch.com/cashing-out-accident-benefits-claims-under-the-statutory-accident-benefits-schedule/.
The role of the litigation guardian
A parent or other adult acting for a child in a legal matter is often called a litigation guardian. The litigation guardian has a duty to act in the child’s best interests, not their own. That includes making sure the child’s money is protected and used for the child. Where court approval is sought, the judge will typically review the evidence about the child’s injuries, the proposed settlement and the plan for managing the funds.
Conclusion
A minor accident benefits settlement in Ontario should be reviewed with the child’s interests and the applicable approval process in mind. Contact Booni Law at admin@boonilaw.com or +1 (226) 271-1751 to discuss the offer. No outcome is promised.
Frequently Asked Questions
Does a child’s accident benefit settlement need court approval in Ontario?
The answer is currently uncertain. Two December 2025 Superior Court decisions took different approaches. Confirm the current state of the law before settling.
What is rule 7.08?
It is the Rule of Civil Procedure that generally requires a judge’s approval for settlements of claims by people under a disability, including minors.
What happens to the settlement money?
It depends on the process used. Settlements approved by the court are often paid into court or otherwise protected until the child reaches adulthood.
Is the lawsuit against the at-fault driver treated the same way?
A lawsuit by a minor against an at-fault driver is a court proceeding, and settlement generally requires court approval under rule 7.08.
Considering a settlement offer for your child?
If an insurer has offered to settle your child’s accident benefits claim, Booni Law can review the offer and explain the approval and protection issues that may apply. Email Booni Law at admin@boonilaw.com or call +1 (226) 271-1751. No particular outcome can be promised.
Disclaimer: This article is provided for general informational purposes only and does not constitute legal advice. Reading this article does not create a solicitor-client relationship between you and Booni Law. The information in this article may not reflect the most current legal developments and should not be relied upon as a substitute for professional legal advice tailored to your specific circumstances. If you require legal advice, please contact Booni Law.
