§ 5003-A — Prompt payment following settlement

New York § 5003-A

• Jurisdiction: New York
• Law CVP: Civil Practice Law & Rules
• Art. 50: Judgments Generally

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§ 5003-a. Prompt payment following settlement. (a) When an action to\nrecover damages has been settled, any settling defendant, except those\ndefendants to whom subdivisions (b) and (c) of this section apply, shall\npay all sums due to any settling plaintiff within twenty-one days of\ntender, by the settling plaintiff to the settling defendant, of a duly\nexecuted release and a stipulation discontinuing action executed on\nbehalf of the settling plaintiff.\n (b) When an action to recover damages has been settled and the\nsettling defendant is a municipality or any subdivision thereof, or any\npublic corporation that is not indemnified by the state, it shall pay\nall sums due to any settling plaintiff within ninety days of tender, by\nthe settling plaintiff to it, of duly executed release and a stipulation\ndiscontinuing action executed on behalf of the settling plaintiff. The\nprovisions of this paragraph shall not inure to the benefit of any\ninsurance carrier for a municipality or any subdivision thereof, or any\npublic corporation that is not indemnified by the state. Any such\ninsurance carrier shall pay all sums due to any settling plaintiff in\naccordance with the provisions of subdivision (a) of this section.\n (c) When an action to recover damages has been settled and the\nsettling defendant is the state, an officer or employee of the state\nentitled to indemnification pursuant to section seventeen of the public\nofficers law, or a public benefit corporation indemnified by the state,\npayment of all sums due to any settling plaintiff shall be made within\nninety days of the comptroller's determination that all papers required\nto effectuate the settlement have been received by him. The provisions\nof this paragraph shall not inure to the benefit of any insurance\ncarrier for the state, an officer or employee of the state entitled to\nindemnification pursuant to section seventeen of the public officers\nlaw, or a public benefit corporation indemnified by the state. Any such\ninsurance carrier shall pay all sums due to any settling plaintiff in\naccordance with the provisions of subdivision (a) of this section.\n (d) In an action which requires judicial approval of settlement, other\nthan an action to which subdivision (c) of this section applies, the\nplaintiff shall also tender a copy of the order approving such\nsettlement with the duly executed release and stipulation discontinuing\naction executed on behalf of the plaintiff.\n (e) In the event that a settling defendant fails to promptly pay all\nsums as required by subdivisions (a), (b), and (c) of this section, any\nunpaid plaintiff may enter judgment, without further notice, against\nsuch settling defendant who has not paid. The judgment shall be for the\namount set forth in the release, together with costs and lawful\ndisbursements, and interest on the amount set forth in the release from\nthe date that the release and stipulation discontinuing action were\ntendered.\n (f) Nothing in this section shall apply to settlements subject to\narticle seventy-four of the insurance law or to future installment\npayments to be paid pursuant to a structured settlement agreement.\n (g) The term "tender", as used herein, shall mean either to personally\ndeliver or to mail, by registered or certified mail, return receipt\nrequested.\n