Good Change: Amendments To The Rules For Settlement Approval Motions For Parties Under Disability

On June 16, 2025, important amendments to the Rules for obtaining court approval of settlements involving parties under disability came into force.¹ These amendments preserve the open court principle to the greatest extent possible while ensuring that incapable parties are not prejudiced by processes designed to protect them.

Under Rule 7.08 any settlement involving a party under disability² is not binding on that party without a judge's approval of the settlement. A judge must find that the settlement is in the best interests of the incapable party, considering the benefit received under the settlement, litigation risk, proportionality, and the desire to settle.³ This safeguard is built into our judicial system to ensure that parties under disability are not taken advantage of.