Hi there. You have correctly identified that the Supreme Court (General Civil Procedure) Rules 2015 (Vic), which regulate civil claims in the Supreme Court of Victoria, only require court approval of a settlement agreement with a minor if a legal proceeding is already on foot. A proceeding will generally be on foot if a legal claim has been lodged with the registry of the Supreme Court.

If proceedings have not yet commenced with the Supreme Court, then the above rule will not apply because the rules only apply once a claim is lodged with the court. For the same reason, a minor does not need to be represented by a litigation guardian unless court proceedings are on foot.

However, if a legal agreement is to be entered to settle a dispute, then ordinary principles of contract law will still apply. Minors generally lack capacity to enter into legal contracts, making it difficult for another party to the contract to enforce their rights under the contract. There are also further statutory rules that prescribe when a minor can and cannot be sued to recover loaned monies.

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