Detailed Answer

This article explains how a claimant or beneficiary in Delaware can ask the court to secure settlement proceeds before full distribution. It covers who may ask the court for protection, typical court steps, paperwork the clerk will expect, and special rules that apply when minors or incapacitated persons are involved. This is educational information only and not legal advice. For case-specific guidance, consult a licensed Delaware attorney.

Legal background

In Delaware, wrongful-death claims arise under the Delaware wrongful-death statute. Courts oversee settlements when distribution or the protection of proceeds requires judicial approval. See Delaware wrongful-death law for the statutory framework: 10 Del. C., Chapter 37 (Wrongful Death).

Who can ask the court to secure settlement proceeds?

• Any party with a legal or equitable interest in the funds (named wrongful-death beneficiaries, personal representatives, guardians, or claimants) may ask the court to secure proceeds.
• An attorney for a minor or an incapacitated person often must ask the court to protect settlement funds until a guardian or court-approved account is in place.
• If there are competing claims (creditors, liens, or multiple beneficiaries), any interested party can ask the court to hold funds pending resolution.

Two common ways the court secures funds

1. Deposit into the court registry (clerk’s registry): The party obtains a court order directing the payer (insurance company or opposing counsel) to deliver settlement checks to the clerk. The clerk places the funds in the court registry (an interest-bearing or non-interest-bearing account depending on court rules). The court controls withdrawal and distribution.
2. Court-approved escrow or blocked account: The court approves a specific financial arrangement—such as a blocked account, restricted bank account, or third-party escrow—and issues an order that limits withdrawals to court-approved distributions or to a guardian managing funds for a minor/incapacitated person.

Step-by-step process to secure proceeds through the court clerk

Below are typical steps. Local practice in Delaware Superior Court or Court of Chancery may vary, so work with counsel or call the clerk to confirm exact forms and fees.

1. Prepare a motion or stipulation: File a motion (or a joint stipulation) asking the court to accept deposit of settlement proceeds into the court registry or to enter an order restricting disbursement. The filing should state the settlement amount, parties, reasons for securing funds, and proposed disposition plan (who will receive funds and when).
2. Attach documentation: Include the settlement agreement (or a redacted version if confidentiality is needed), the proposed order, and proof of identity for beneficiaries. If minors or incapacitated persons are involved, attach guardian or conservator petitions or medical evidence as required.
3. Request specific clerk instructions: Ask the court to direct the payer to make the check payable to the court registry (commonly format: “Clerk of the Court – [Court Name] – In re: [Case]”) and specify the clerk’s mailing or delivery address and any required referencing information (case number).
4. Obtain the court order: After notice and any required hearing, the judge signs an order directing deposit and specifying withdrawal procedures (e.g., court approval required, only after filing certain releases, or to a guardian).
5. Deliver funds and proof: Provide the settlement check and a certified copy of the signed order to the clerk per the clerk’s instructions. The clerk will issue a receipt and log the funds on the court registry docket.
6. Follow-up motions for distribution: To release funds later, file a motion and obtain a court order authorizing distribution according to the approved plan. The clerk disburses funds only upon receipt of the signed distribution order and any required tax or lien clearances.

Special situations

Minors and incapacitated persons: Delaware courts typically require court approval for settlements involving minors or incapacitated persons. The court may require a guardian be appointed or require funds be placed in a blocked account or trust. Expect extra documentation and hearings.

Medical liens, Medicare/Medicaid, and creditors: Before distribution, identify and resolve liens (medical providers, Medicare/Medicaid subrogation, or other creditors). The court may order the payer or plaintiff to hold back funds to satisfy valid liens. Failure to address liens can result in later claims against distributed funds.

Competing beneficiaries or claims: If beneficiaries dispute distribution or a creditor moves to attach the funds, the court may keep proceeds in the registry until disputes resolve.

Practical details and timelines

• Clerk procedures and fees differ by court; contact the specific Delaware court clerk (Superior Court, Court of Chancery, or Justice of the Peace) for local rules and cashiering instructions.
• Expect at least several weeks for motion briefing, scheduling, and court orders—plan accordingly if payments to dependents are time-sensitive.
• Court registry funds may earn interest subject to court rules; check with the clerk about interest credit and administrative fees.

What the clerk will typically require

• Signed court order directing deposit to the registry
• Settlement check made payable as ordered by the court
• A certified copy of the docket or case caption and case number
• Identification and contact information for the party delivering funds
• Any forms required by the court’s finance office

If you are represented, your attorney should handle filings, clerk communications, and coordination with the payer. If unrepresented, contact the clerk’s office for procedural guidance and consider consulting counsel for complex matters.

Helpful Hints

• Start early. Draft motions and gather settlement documents before the payer prepares the check.
• Talk to the clerk. Court clerks can explain filing requirements, acceptable payee language, and delivery procedures for the registry.
• Address liens up front. Identify health-care providers, Medicare/Medicaid, and insurers that might assert subrogation or liens and resolve them before distribution.
• Use a written plan. Have a clear, court-approved distribution plan that names recipients and addresses tax, lien, and fee deductions.
• Protect minors. If any beneficiary is a minor, expect the court to require a guardian or a blocked account and to scrutinize the settlement for fairness.
• Keep records. Keep receipts, certified orders, and clerk confirmations of registry deposits and disbursements.
• Consider bond requirements. Some courts require a bond or security when a fiduciary receives funds; budget for that possibility.
• Get professional help. An experienced Delaware civil attorney or guardian-ad-litem can speed the process and reduce the chance of costly mistakes.