Secureing wrongful-death settlement proceeds through the court registry in Hawaii

Disclaimer: This is general information, not legal advice. I am not a lawyer. For advice about your specific situation, consult a licensed attorney in Hawaii.

Detailed Answer

If you are worried that settlement funds from a pending wrongful death claim may be lost, diverted, or claimed by competing parties, Hawaii law and court procedures allow you to ask the court to hold (“secure”) the funds in its registry until the court approves a distribution. The process below explains the common steps, who can ask the court to hold money, and the practical considerations specific to wrongful death recoveries under Hawaii law.

1. Who may request that funds be held by the court?

Typically the personal representative, the named plaintiff(s) in the wrongful death action, or the defendants/insurer (if they want to avoid later claims) can ask the court to accept funds into its registry. If the parties disagree about who is entitled to the money, any party may ask the court to accept the funds and resolve competing claims before release.

2. Why use the court registry?

• It protects funds from competing claimants.
• It prevents premature distribution while required approvals (for minors, conservatorships, or probate issues) are obtained.
• It allows the court to approve attorney fees or settlement terms before money moves.

3. Typical procedural steps

1. Ask the insurer or payer to make the draft acceptable for deposit:
   Request the check or wire be made payable in a form the payer will accept for deposit into the court registry (for example: “Payable to the Registry of the Circuit Court, [County], State of Hawaii”), or ask for a draft payable to the named payee with the payer’s agreement that the funds will be deposited into court upon delivery.
2. File a motion with the court:
   Prepare and file a motion (often titled “Motion for Deposit into Court Registry” or similar). The motion should explain why the registry should hold the funds—examples: competing claimants, pending approval for distribution to minors, or unresolved lien issues. Attach the settlement agreement (or a copy of the offer), the proposed order, and any releases you plan to sign.
3. Proposed order and documents:
   Submit a proposed order directing the clerk to accept the funds. Include instructions about who may withdraw funds and under what court order. If the settlement will resolve only some claims, explain how the remaining claims will be protected.
4. Hearing or clerk action:
   The court may set a brief hearing, or the judge may sign the proposed order without a hearing. Once the order issues, the payer can deliver the check to the clerk according to the order’s instructions.
5. Deposit and receipt:
   The court clerk will deposit the funds into the registry account. The clerk will issue a receipt and usually enter a registry docket entry. The clerk may hold the funds subject to further court orders (distribution, interpleader, or discharge to an appointed fiduciary).
6. Resolve outstanding issues before release:
   Before the clerk disburses funds, the court must decide on distribution. This may require resolving competing claims, approving a settlement involving minors or incapacitated persons, approving attorneys’ fees, or setting up a conservatorship or special account for minors.

4. Situations that commonly require court approval or extra steps

• Minor beneficiaries: If a wrongful death recovery benefits a minor, the court typically must approve the settlement or supervise the minor’s receipt of funds. The court may require appointment of a guardian or the establishment of a protected account or structured settlement before release.
• Incapacity or guardianship issues: If a beneficiary is incapacitated, the probate/guardian process may be required before funds release.
• Creditor claims or liens (medical providers, Medicaid, etc.): The court will often want to resolve liens or order escrow for lien claims before releasing the net proceeds.
• Competing claimants: If more than one person claims entitlement, the court can keep funds in registry and resolve the dispute either through an interpleader-like process or a distribution hearing.

5. Attorney fees and liens

Attorneys typically assert a contractual fee interest and may ask the court to approve payment of fees out of registry funds before distribution to beneficiaries. The court can order payment to counsel from the funds on deposit after review of fee agreements and liens. If an insurer deposits funds wanting to be discharged from further exposure, include proposed language that the payer is released once the court accepts the deposit and approves distribution.

6. Practical tips for working with the clerk

• Contact the clerk’s office early. Each circuit court (island/county level) has local practices and forms. The clerk can explain deposit procedures, fee schedules, and whether a hearing is required.
• Confirm the exact wording the payer must use on the check so the clerk will accept it.
• Ask about interest, account administration fees, and how long the clerk can hold the funds.
• Keep copies of all filings, receipts, and proof of the clerk’s registry deposit entry.

7. Hawaii statutory context

Hawaii’s wrongful death statutes govern who may recover and how recovery is distributed. See Chapter 663 of the Hawaii Revised Statutes for wrongful death provisions and distribution rules: HRS Chapter 663. Use the court registry procedure to protect funds pending court-approved distribution under those statutory rules.

Helpful Hints

• Ask the insurer to deposit funds with the court if you expect competing claims or need time to obtain probate/guardian approvals.
• File a short, clear motion and a proposed order to speed clerk acceptance of funds.
• If minors are involved, plan for a guardianship, minor’s compromise, or a court-approved structured settlement before requesting release.
• Document all liens or bills that may attach to proceeds (medical bills, Medicare/Medicaid) and alert the court to those claims.
• Preserve proof that the payer delivered funds to the clerk and get a formal registry receipt from the court.
• Expect a short waiting period for the court to review claims and order distribution. Factor this into any deadlines or timelines.
• When in doubt, consult a Hawaii-licensed attorney experienced in wrongful death and probate procedures. They can draft the motion, appear at a hearing, and protect beneficiaries’ interests.

For more information about Hawaii wrongful death law, see the statute chapter linked above: HRS Chapter 663. For local procedures, contact the clerk of the circuit court where the case is filed.

Remember: this article is informational only and not legal advice. Confirm procedures with the court clerk and consult a qualified Hawaii attorney for case-specific guidance.