Corey v. Corey, 2002 ME 132

Summary

The Supreme Judicial Court of Maine affirmed approval of a settlement involving a minor’s property and a claimed constructive trust. The court held that settlements on behalf of minors must be fair, reasonable, and in the minor’s best interests, and that the trial court did not abuse its discretion in approving the settlement. The court concluded that the evidence supported the likely imposition of a constructive trust and that the settlement terms were reasonable.

Holdings

1. A court approving a settlement involving a minor must review the compromise and assure itself that the settlement is fair, reasonable, and in the minor's best interests.
2. The Superior Court did not abuse its discretion in approving the settlement as fair, reasonable, and in Darrian's best interests.
3. After appointment of a guardian ad litem because the parents had a conflict of interest, the guardian ad litem had authority to accept a settlement on Darrian's behalf, subject to court approval; Todd and Kelly's consent was not required.
4. The evidence supported the conclusion that the funds were not an inter vivos gift and that a constructive trust was the probable result of trial.

Questions Presented

1. What standard governs a court's approval of a settlement entered on behalf of a minor?
2. Whether the Superior Court abused its discretion by finding the settlement fair, reasonable, and in Darrian's best interests.
3. Whether Todd and Kelly's consent was required for the guardian ad litem to accept the settlement.
4. Whether the evidence supported treating the funds as a loan and imposing a constructive trust rather than treating the funds as an inter vivos gift.

Disposition

affirmed