Prohibition On ‘Parental Indemnity’ Settlements In Personal Injury Cases

Practitioners are reminded that a solicitor instructed to make a personal injuries claim on behalf of a person who is not of full age cannot settle that person’s claim without first issuing proceedings in the appropriate court and having the terms of the settlement ruled by the court. This is a statutory obligation imposed by SI no 99/1990 (Solicitors (Practice, Conduct and Discipline) Regulations 1990), the purpose of which is to prohibit what is known as a ‘parental indemnity’ settlement – that is, a settlement of a perceived non-serious case involving a minor by payment of an agreed amount to the parent(s) of the minor by the defendant’s insurance company, without proceedings being issued and without court approval, or the lodging of the amount in court, in consideration of which the parent(s) give a written indemnity to the defendant/insurance company concerned, which can be produced in the event that the minor sues the defendant when he/she reaches full age.

Practitioners are advised to familiarise themselves with the full content of SI 99/1990 in this regard.