The plaintiffs, Michele Whitcomb and her father, Mason Whitcomb, have appealed in this civil action from summary judgment entered in favor of the defendants, George and Janice Dancer.
Michele Whitсomb, a minor six years of age, was injured when attacked and bitten by a dog allegedly owned by the defendants. This action was commenced on her behalf by her father, Mason Whitcomb, as her next friend, seе 14 V.S.A. § 2657; V.R.C.P. 17(b), claiming negligence in permitting the animal'to run loose. Mason also joined in the suit ás a'-party plaintiff seeking to recover the costs of medical services provided to the child necessitated by her injuries.
On March 27, 1979, plaintiffs’ attorney contacted, opposing counsel stating: “Our clients have now authorized me to-.settle for $800. If you are interested, please send me releases.:as yоu desire executed.” Defendants’ attorney responded on April 9, 1979, by sending plaintiffs’ attorney a settlement draft for $800 and requesting a V.R.C.P. 41 stipulation of dismissal. Nearly four months passed without any further action or сontact by either party, until, on August 3, 1979, defendants’ counsel telegraphed the attorney for the plaintiffs inquiring about the stipulation. No response was forthcoming or further communication, again by either рarty, for over five months.
On appeal plaintiffs raise two grounds of error. First, they contend the trial court erred in concluding that the nine-month retention of the draft by рlaintiffs constituted an acceptance of the proffered settlement. Second, and alternatively, they argue that even if Mason Whitcomb had intended a settlement, his actions were not valid and binding as to his minor daughter and therefore could not operate as a bar to her cause of action.
We need address only the issue of the authority of Mason Whitcomb to settle his minor daughter’s claim. It is the de fendants’ contention that they accepted an offer to settle, made 1 by the plaintiffs, when they mailed the $800 draft. Assuming, arguendo, that this is true we must decide whether a compromise entеred into by a parent in settlement of a cause of action belonging to a minor child is binding upon that child.
It is generally held that a parent cannot compromise or release a minor child’s сause of action absent statutory authority.
Doyle
v.
Bowdoin College,
Our statute establishing the authority of a parent to release the claims of a minor is 14 V.S.A. § 2643. This statute, as it existed on April 9, 1979, 1 when defendants’ attorney mailed plaintiffs’ attorney the $800 draft, provided:
The superior judge of the county court within and for the county where the minor resides, on behalf of a minor, must аpprove of and consent to a release to be executed by a parent in the settlement of any claim which does not exceed the sum of $500.00. A release so furnished
(a) The superiоr judge of the superior court within and for the county where the minor resides, on behalf of a minor, must approve of and consent to a release to be executed by a parent in the settlement of any claim which does not exceed the sum of $1,500.00. A release so furnished shall be binding on the minor and both parents, their heirs, executors, administrators or assigns, respectively.
(b) Any claim settled for a sum in еxcess of $1,500.00 shall require the approval of a court-appointed guardian.
Because we reject the defendants’ argument that § 2643, prior to the 1979 amendments, gave parents unlimited authority tо settle claims in excess of $500 belonging to their minor children, we have no occasion to reach the issue of the applicability of the amendments to the instant case. shall be binding on the minor and both parents, their heirs, executors, administrators or assigns, respectively.
The defendants assert that since the settlement in this case exceeded $500 it did not require the approval of the trial сourt. Therefore, they argue, summary judgment was appropriate because Mason Whitcomb had authority as Michele’s parent to settle her claim.
The flaw in this argument lies in the assumption that § 2643 did not rеquire judicial
As we stated above, it is generally held that a parent cannot compromise a minor child’s cause оf action absent express statutory authority. E.g.,
Burge
v.
City and County of San Francisco, supra,
There is no legitimate rаtionale for protecting minor children in settlement agreements of $500 or less, yet denying protection merely because the settlement is in excess of $500. In both situations the minor child is in need of protеction from the potential improvidence of his or her parents. The defendants’ interpretation of § 2643 thus runs afoul of a fundamental rule of statutory construction that no unjust or unreasonable result is presumed to have been contemplated
by the Legislature.
Nolan
v.
Davidson,
Furthermore, at common law even one appointed guardian ad litem cannot bind a minor litigant to a settlement agreement “absent an independent investigation by the court and a concurring decision that the compromise fairly promotes the interests of the minor.”
Dacanay
v.
Mendoza,
We find no clear legislative intent in § 2643 to permit a parent to settle a minor child’s claim in excess of $500 free of judicial supervision. Rather, we believe that § 2643 was intended to mоdify the common law only with respect to settlements of $500 or less. Where a proposed settlement agreement exceeded $500 it was necessary for the minor to be represented by a сourt-appointed guardian. 2 Cf. 14 V.S.A. § 2658 (guardian appointed by probate court empowered to settle minor’s claims). We hold therefore that the purported settlement of Michele Whitcomb’s сause of action was invalid and the grant of summary judgment in favor of the defendants was error.
Reversal of the judgment below is also required because the parties failed to allocate a specific settlement sum to the
Reversed and remanded.
Notes
Effeсtive May 10, 1979, § 2643 was amended to read as follows:
Our construction of § 2643 is consistent with the 1979 amendments to that statute. The 1979 Legislature recognized the ambiguity in the statute and therefore added § 2643(b), which expressly provides that settlements in excess of the statutory limit (now $1,500) must be approved by a court-appointed guardian.
