Does any settlement involving a party under a disability require court approval?

When considering settlements involving a party under a disability, it is essential to understand that individuals who are deemed to have a disability are provided with heightened protections in legal situations. This is particularly true when it comes to financial agreements, such as settlements.

In Ontario, the law mandates that court approval is required for any settlement involving a minor or a legally incapacitated person to ensure that their rights and interests are adequately protected. This requirement serves to safeguard vulnerable individuals who may not have the capacity to fully understand or consent to the terms of the settlement. The court's oversight helps ascertain that the settlement is in the best interest of the party under disability and that fair compensation is being provided.

Given this context, it is clear that the statement regarding the necessity of court approval for settlements involving parties under a disability is accurate and reflects the legal framework that aims to protect these individuals.