It happens too often.
Parent settles case on behalf of minor. The court orders the settlement proceeds to be invested and not to be touched without a court order until the minor turns 18 (or 21). Somehow, a parent dips into the money after all, and by the time the minor finds out, the money’s all gone.
It really does happen often, despite certain protections in the system.
Luckily, in Newell v. Newell, the Third District allowed an action against the parent and the bank in one of these situations. The court held that a three year statute of limitations applied, but also applied the discovery rule, so that the statute of limitations didn’t begin to run until the minor knew or had reason to know that a cause of action might exist.
(Howard Zimmerle is a lawyer in the Quad Cities, regularly handling cases in Moline, Bettendorf, Rock Island, Davenport, East Moline and other areas. You can reach him at 309-794-1660 or hzimmerle [at] mjwlaw.com)